Engineering Development Board (EDB), a subsidiary of Ministry of Industries and Production (MoI&P), is accused of extending extraordinary support to a motorcycle manufacturer in violation of its own Statutory Regulatory Order (SRO). Well informed sources told Business Recorder that a motorcycle manufacturer who owes Rs 1.2 billion to the Federal Board of Revenue (FBR), bank and vendors has already fled the country. That motorcycle company owed Rs 800 million to 65 vendors alone.
The 'affected' 65 vendors recently met Secretary Industries and Production, Raja Hasan Abbas - also the head of EDB head - and apprised him about the issue and the less than salutary role played by EDB officials in supporting the party for personal gain. An official told Business Recorder that vendors have threatened to set themselves on fire in the EDB office in protest against the role played by the EDB officials of tariff wing.
Giving details, the sources said, FBR gave a facility to motorcycle manufacturer to make its own premises as bonded warehouse where engines were kept. The facility was supposed to be monitored by the FBR officials. However, the motorcycle manufacturer in connivance with FBR officials removed engines from the premises without paying duties. When the matter came into the knowledge of top officials, FBR registered an FIR against the entrepreneur of the company, who fled away to Canada as he was a Canadian national.
Almost a year later FBR has neither held an inquiry nor handed the case to any investigation agency. Vendors have filed cases in Lahore High Court and are now fighting in the Supreme Court. Both the EDB and Intellectual Property Organisation (IPO) received court orders but IPO transferred the defunct brand to another motorcycle company. EDB in spite of attachment orders issued a licence to another company to produce brands of defunct company.
When vendors visited IPO, they initiated a 'fact finding inquiry' to determine how the brand was transferred despite the attachment order. EDB had started the process to suspend the licence of the fraudulent company but later on issued only a notice in grave violation of its own SRO.
EDB officials did not place the attachment order in Islamabad High Court and allegedly concealed facts to oblige the motorcycle company. LHC recently issued liquidation order of the company which has now been challenged in the Supreme Court. The sources said, a motorcycle company which is now producing brand of defunct company allegedly removed everything from the factory premises such as plant, machinery, furniture, cars, and CKD stocks.
Mirza Nasir Baig of EDB, who issued notice to the company instead of suspension notification, confirmed that the notice was issued with his signature but added that the case was moved from the lower level. He maintained that another official is an expert of SROs but he (Mirza) is just a signing authority. Mirza, however, expressed inability to provide the draft of the letter or a copy of the file, saying that the file is now in another section and he cannot access it.
EDB's SRO says that EDB is only authorised to suspend production or allow resumption. There is no provision for issuance of notice to the party. Mirza Nasir Baig refused to read the wording of SRO. "We issued notice to the company instead of producing the suspension notification based on what was written in the note portion of the file," Mirza insisted.
Replying to a question, he confirmed that complainants met the Secretary Industries and raised the issue with him. However, he acknowledged that vendors met last with the previous Secretary. This case is in the knowledge of entire EDB and Industries Ministry but no one knows what deal the concerned official struck with the benefiting party. When contacted one of the FBR official told Business Recorder that the offices of motorcycle manufacturing company were raided and files of defunct company which is a defaulter of millions of rupees were accessed. The Secretary Industries could not be reached for his comments.
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