ISLAMABAD, May 24: Deputy Chairman of National Accountability Bureau Javed Kazi has extended the service of NAB Rawalpindi's Director General Rana Zahid Mahmood whose one-year contract expired on April 21, sources said on Tuesday.

Mr Mahmood is holding additional charge of Lahore NAB director general.

Javed Kazi, who is heading the NAB in the absence of its chairman, also retired on April 30 from his parent department — the Federal Board of Revenue. He has been barred by the Supreme Court from exercising powers of the NAB chairman,

The continued occupancy of the two posts by the two officials has been challenged in the Supreme Court.

It has been learnt that the apex court will hear the case of Rawalpindi DG on Wednesday and the legal team of the NAB is expected to present before it the letter issued by Mr Kazi that extended the service of Mr Mahmood.

When contacted, the NAB spokesman confirmed that the case against the NAB deputy chief and Rawalpindi/Lahore DG would be heard by the apex court on Wednesday, but he showed ignorance about any letter issued by the deputy chairman.

It has been learnt that the government wanted to give extension to Mr Mahmood because he was dealing with NRO cases, including the cases against President Asif Ali Zardari.

Mr Mahmood's appointment remained controversial from day one because he was a PCO judge of the Lahore High Court. Chief Justice Iftikhar Mohammad Chaudhry had removed him even before his induction into the NAB.

The deputy chairman, who has been barred by the Supreme Court from exercising powers of the NAB chairman, appointed NAB officer Syed Hasnain Ahmed as director of the Financial Crime and Investigation Wing (FCIW), Punjab. The sources said the appointment had created resentment in the NAB Punjab.

Some officials, including Atiqur Rehman who has been replaced by the new FCIW director, wrote ac letter against the DG. Interestingly, they described present NAB Punjab DG as former DG.

Atiqur Rehman wrote: “The transfer order has been issued in contravention of NAB Terms & Conditions of Services section 7.02, 3.35, as approval of competent authority for officers of BS 19 and above i.e. chairman NAB (being not in office since long) has not been taken in this regard.

“Regretfully, the change has been affected for non-supporting illegal acts of ex-DG Rana Zahid Mahmood, who used to attend office of NAB Punjab unlawfully despite expiry of his contract appointment on April 21, 2011.

“Facts of the matter are that the ex-DG called meeting on May 2, 2011 with local MNA who is brother of accused Malik Mohammad Qayyum, former Attorney General of Pakistan, Malik Ahmad Hayat Lak, (an employ of Attock Oil Refinery working temporarily in NAB HQ on attachment bases) to finalize liability of accused Malik Muhammad Qayyum in Qasar-i-Zauq case monitored regularly by Supreme court of Pakistan. I was directed by ex-DG to attend the meeting along with investigation officer and record but the same was refused being unlawful and violative of operational methodology as contract appointment of ex-DG had expired since April 21, 2011. Surprisingly a junior officer was posted in my place in the late hours of May 6.”

Another letter written by Capt (retd) Shamsher Ali, who is severing as the director of Investigation Wing-I Punjab, said: “It is appraised that a new development has emerged in the wake of appointing Mr Hasnain, additional director (staff) to look after the work of director FCIW NAB Punjab which is in contradiction to TCS Rules No 3.35 & 3.36 part-VIII, additional charge and current charge of post, and has added confusion to the already illegal continuation in the offices by ex-DG NAB Punjab Rana Zahid Mahmood.

“Moreover, some of individuals are allaying themselves with the ex-DG Mr Rana Zahid Mahmood without any legal authority whereas undersigned along with other directors are awaiting NAB headquarters' reply.”