ISLAMABAD: The Special Court of the Federal Investigation Agency (FIA) has rejected post-arrest bail applications of six accused in the Associated Press of Pakistan (APP) corruption case involving alleged embezzlement of over Rs1.24 billion.

The court, presided over by Judge Humayun Dilawar, dismissed the bail petitions of the accused after hearing detailed arguments.

During the proceedings, Judge Dilawar inquired about the transfer of funds, to which APP’s counsel submitted that Rs80 million had been deposited into the account of former account manager — of which Rs60 million was shown as “salary”— while Rs90 million was transferred to the account of ex-cashier. He added that certified bank records had been provided to the FIA.

The prosecution argued that all 16 accused acted in collusion, with funds being transferred into a few accounts before being withdrawn and distributed among the group.

Earlier in September, the court had also rejected pre-arrest bail applications of 13 accused and ordered their immediate arrest, with FIA teams apprehending seven suspects from the courtroom.

The case stems from a complaint lodged by the APP administration, alleging large-scale financial irregularities in pension, provident fund, and salary accounts.

A fact-finding committee constituted by APP management reported that Rs1.24 billion had been embezzled through unauthorised transactions, fake pension entries and manipulation of provident fund records.

The committee further revealed that crucial financial documents, including cash books, ledgers and salary sheets, were missing, allegedly destroyed by former officials to conceal the fraud.

It identified 16 key suspects, including former executives, managers and clerks, recommending the case be referred to the FIA or the National Accountability Bureau (NAB).

Following the findings, the information ministry directed the APP management to hand over the case to FIA, while also considering NAB’s involvement under the National Accountability (Second Amendment) Act, 2022.

Published in Dawn, October 2nd, 2025