ISLAMABAD, May 12: The Federal Investigation Agency (FIA) is facing resistance from an influential person in registering a case against four senior officials of Pakistan Baitul Maal (PBM), Punjab, for their alleged involvement in embezzlement of Rs8 million, sources in the agency told Dawn .

The sources said the influential figure was using all his authority and political clout to avoid registration of the case. “He fears that registration of a case against the officials will allow the FIA to start investigations and find other cases of embezzlement and corruption in Baitul Maal,” the sources maintained.

They said in response to a complaint the FIA's corporate crime cell had launched an investigation in November 2010 and unearthed the embezzlement after six months.

The embezzlement was committed in the purchase of cotton lawns and shoes for the art and craft schools all over the Punjab. A tender was floated in the press in 2008 against which the purchase was made in 2009.

The tender sought purchase of Gul Ahmad and Al-Karam cotton lawns but later substandard cloths were purchased and the trademark of Gul Hamid was embossed on it, the sources said, adding, however, in the quotation and sale orders the names of Gul Ahmad and Al-Karam were mentioned. This was despite the fact that Gul Hamid cotton lawn was available with the Baitul Mal.

The cost of Gul Ahmad and Al-Karam cotton lawns was Rs57 per metre while the same material of Gul Hamid cost Rs12-13 per metre at the time of purchase, the sources added.

In the purchase of the cotton lawns, the senior officials of the PBM Punjab allegedly embezzled Rs4 to Rs5 million, said the sources.

Likewise, the officials also minted Rs3 million in the purchase of Bata shoes, the sources said, adding the embezzlement was made through a middleman and each pair of shoes costing Rs100 was purchased for Rs300.

According to the law, government departments should purchase items directly without the help of a middleman. The sources said in the purchase of the shoes, the officials also violated the law.

When contacted, Managing Director Pakistan Baitul Mal (PBM) Zamrud Khan neither denied nor confirmed the allegation.

He said: “It is a war between two rival groups of Baitul Maal.”

He said the rival groups were sending anonymous letters to different authorities against each other.

Earlier, the matter was also brought to the Public Accounts Committee, which rejected it, he added. “Later, I personally investigated the matter for two months but found nothing wrong,” he claimed.