PESHAWAR, June 2: A central character in the multi-billion scam related to procurement of weapons and vehicles for Khyber Pakhtunkhwa police has disclosed that over Rs1 billion were paid to several people including the brother of a former chief minister, police high-ups and intelligence officers as kickbacks for getting lucrative contracts and cover-up of the issue.

Arshad Majeed, a private contractor who was released on bail few days ago by Peshawar High Court after he turned approver in the scam, in his statement recently recorded before a judicial magistrate alleged that during 2009-10 when the tender for bullet proof jackets (BPJ) was under process he was informed by the then inspector general of police, Malik Naveed, that he had also to pay Rs200 million to Ghazan, the brother of the then chief minister Amir Haider Hoti.

He claimed when he told them that payment of such a huge amount would not be possible, he was told by Raza, stated to be brother-in-law of Mr Ghazan, to enhance the rate of each jacket by Rs7,000.

“I did accordingly and my bid for Rs55,500 per BPJ was approved against the last year’s rate of Rs48,000,” he said, adding that he later on paid Rs195 million to Mr Raza.

The accused stated that despite not having past experience in supply of weapons, ammunition and vehicles, he was awarded several lucrative contracts. He cited several instances when he was made payments in advance by the government prior to supply of the required items to run the entire business on the government money. “I was doing business on the government money arranged through budget officer and the then IGP, who used to demand handsome kickbacks/commission.”

Mr Majeed recorded his statement on May 25 before the court of judicial magistrate Mohammad Ilyas Khan. In his five-page statement, he has levelled several allegations against influential persons claiming that he paid Rs360 million to former IGP Malik Naveed in threeinstallments and also purchased nine air conditioning units for his personal residence.

Javed Khan, the budget officer, and Arshad Majeed were arrested on Feb 21 after an inquiry was conducted by NAB (Khyber Pakhtunkhwa) that revealed that gross violation of procurement rules were committed by the purchase committee in awarding of contracts to the favourite contractors. Mr Majeed was set free after he agreed to return Rs102 million voluntarily and also turn approver against other suspects.

In his statement, he alleged that he was also told by Malik Naveed to make payment to Niaz, the adviser to the then chief minister. He claimed that his PA Zulfiqar informed him through cellular phone that the payment of Rs10 million should be made in US dollars and Rs10 million in Pakistani currency following which he made the said payment in the annexes of the CM House.

The approver said that he had paid about Rs420 million in cash to Javed Khan for the assistance in preparation of tender document, using influence in approving the bids, arranging funds and making payments in advance.

“I had also purchased a house at Phase VI for the budget officer, Javed Khan, which was purchased in the name of my employee Faisal Khan for which I had made payment of Rs8 million from my second wife’s account. I have also spent approximately Rs3 million on Haj performed by Javed Khan and his family members in year 2010.”

Mr Majeed alleged that he had also paid Rs30 million to Fateh Khan, an employee in the ministry of interior Islamabad, for arranging NOCs. He added that he later came to know that Fateh Khan had died in a road accident.

Meanwhile, he said that a Col (retired) Sajjadur Rehman of ISI Islamabad contacted him and promised for clearing his name from NAB inquiry and he paid an amount of Rs10 million to him at the residence of another official of ISI in Islamabad.

The accused has also confessed to supplying sub-standard items. He said that he also got contract of 56 Yamaha Japanese made police motorcycles. “In this contract, I purchased 13 Japanese made motorcycles and 43 Chinese made cheaper motorcycles. It is worth mentioning that I converted all these motorcycles like Honda-made Police Model as the original police model is only manufactured by Honda.”

Mr Majeed claimed that during the period of Malik Naveed as commandant of Frontier Constabulary he developed relations with him and later on during 2008 he was posted as IGP. He added that he was running normal business of supplying clothing and food items to Khyber Pakhtunkhwa police and FC. He added that apart from his firm M/S Majeed and Sons, he had been controlling four other firms.

The accused claimed that during early 2008, he was conveyed through budget officer that police were going to procure huge quantity of arms and ammunition and other security equipment and he was told to apply for prequalification for the purpose.