NAB Rawalpindi recovers Rs 385.11 million from directors of RG Pharmaceutical (Private) Limited

NAB Rawalpindi has recovered Rs 385.11 million from accused persons namely Tariq Haider and Mian Khalid Mehmood, Directors of M/s RG Pharmaceutical (Pvt) Ltd in the investigation against officers/officials of Ministry of National Regulations and Health Services, beneficiaries and other regarding drug pricing issues through Plea Bargain which is one of the highest plea bargain with any accused.
An investigation by Muhammad Saleem Ahmad Khan, Investigation Officer (BS-18) under the supervision of DG NAB Rawalpindi Syed Zahir Shah is under progress on allegations of illegal increase of drugs prices. NAB received a complaint wherein it was alleged that officers/officials of Ministry of National Regulation & Health Services Division (NR&HSD) and others was involved in illegal increase in prices of drugs through Drugs Pricing Committee meetings held on 09-10-2012 & 22-01-2013 and sub-committee meeting held on 19-11-2012. The prices of the drugs were fixed as per Section 12 of Drugs Act 1976 by Drugs Pricing Committee (DPC) duly constituted by federal government.
During the investigation, it reveals that some pharmaceutical companies have been given undue financial benefits by the members of Drugs Pricing Committee (DPC) through exorbitant increase in prices of their drugs. It also reveals that the management of M/s RG Pharmaceutical (Pvt) Ltd aided, assisted, abetted, and in conspiracy with DPC members got unjustified price increase of their drug Venofer Injection on the basis of import invoice at 3 Euro / ampoule whereas actually the company was importing its product at 2.5/ ampoule CHF (Swiss Currency) at the relevant time period.
In the same way, the management of said company also got unjustified price increase of their drug Maltofer Syrup, which was being manufactured by M/s Pharmatec Pakistan (Pvt) Ltd through a toll manufacturing agreement, on the basis that import cost of Raw Material of active ingredient (Iron) as Rs 46.272/ 120 ml at CHF 94.80 per Kg. Investigation reveals that the cost of active ingredient (Iron) is CHF 49.3/Kg at the relevant time period which comes to be approximately Rs 24/120 ml and not Rs 46.272/ 120 ml. Hence, it is established from the record that the management of the company derived wrongful gain amounting to Rs 385.11 million as result of unjustified price obtained through fraud and misrepresentation. That the accused persons namely Tariq Haider and Mian Khalid Mehmood have submitted an application for Plea Bargain to DG NAB (R).
Consequently, the accused persons have entered into an express agreement with the NAB for the disposal of the case against them in clear terms of section 25 (b) of NAO 1999. They agreed voluntarily to make payment as per terms of the plea bargain accepted by the Chairman NAB. The request of the accused persons was considered by the competent authority. After taking into consideration the facts/circumstances of the case and keeping in view the total liability of Rs 385.11 million, the competent authority has accepted the plea bargain request of the accused persons. The Chairman NAB has accepted the plea bargain of accused persons namely Tariq Haider and Mian Khalid Mehmood for an amount of Rs 385.11 million which was subsequently approved by the Accountability Court Islamabad as the accused persons have cleared whole liability.
It is relevant to note here that the prices of above said drugs will be reverted back to the level of 2012 in the light of plea bargain agreement by M/s RG Pharmaceutical (Pvt) Ltd. Moreover, Drugs Regulatory Authority of Pakistan is being issued instructions to implement the order in its true spirit by not allowing the company to sell its above drugs beyond 2012 prices.-PR