FIA submits Rs 980 million embezzlement probe report against CABM ex-director

The Federal Investigating Agency (FIA) has submitted Rs 980 million financial embezzlement inquiry report against Dr Riazuddin, former Director of Centre for Applied Molecular Biology (CABM) Lahore to the Public Accounts Committee (PAC). According to the report submitted with PAC on April 18, after an in-house enquiry into administrative and financial irregularities committed in the centre, on the orders of the then Secretary, Ministry of science & Technology (MoST) in 2010-11 the matter was reported to FIA and DG (Audit) for further investigations.
The in-house inquiry revealed serious administrative and financial irregularities by the former management of CAMB, and it was decided to freeze 74 bank accounts maintained in private banks by the then CABM management. The FIA in its interim report dated 18th January 2011 submitted to the National Assembly Standing Committee on Health confirmed the charges of financial mismanagement/embezzlement/misappropriation and irregularities against the former Director CAMB, Dr S Riazuddin.
According to the report Dr Riaz retired as Director CABM in 2004 and was reappointed by the competent authority on contract basis for a period of five years till 10/06/2009. The report said that Dr Riazuddin also appointed his daughter Saima Riaz and son-in-law Dr Zubair as adjunct professors at the center for a research project and they were paid Rs 8.5 million without undertaking any work while during the period they were residing abroad.
The FIA in its interim report dated 18th January 2011 submitted to the National Assembly Standing Committee on Health confirmed the charges of financial mismanagement/embezzlement/misappropriation and irregularities against them. The FIA report notes that Dr S Riazuddin continued to operate CAMB and CEMB Bank Accounts even after the termination of his contract on 10-6-2009.
It has been established that Dr Riazuddin transferred an amount of prize money worth US $100,000 from Account No 02068600559 titled Dr Riazuddin Prize Money of ABC Canal View, Lahore to Account No 124479000438603 of HBL, Allama Iqbal Medical College/ Jinnah Hospital Branch, Lahore without permission of the competent authority. During the course of inquiry, six bank accounts of CAMB were unearthed which were opened without intimation to MoST.
Account No 01-200-3725-4 titled Grants Misc was opened by Dr Riazuddin with his own residential address ie 10-P, Model Town, Lahore instead of CAMB's address. He withdrew an amount of Rs 23.8 million on 24.12.2009 under his signature and transferred it to CEMB. The office of Auditor General of Pakistan also conducted a special audit and confirmed misappropriation to the tune of 150 million, irregulation intention of public funds of Rs 526 million, irregularities Rs 404 million, concealment of funds 222 million in CAMB only.
In a joint meeting of the Board of Governors CEMB and the Executive Committee of CAMB, the matter of funds lying frozen in the CAMB bank accounts were also deliberated upon. It was unanimously decided that the amount lying in various private commercial banks be deposited in public exchequer. Accordingly, an amount of Rs 548.72 million was recovered from the numerous accounts being maintained with private banks on July 15, 2013 and deposited in national kitty.
FIA also conducted an enquiry by the order of PAC and submitted to its report to the PAC secretariat during a meeting of Sub-committee of PAC held on 19th November, 2012, chaired by Yasmeen Rehman (MNA) as convenor. Briefing by the representative of the FIA was also given to the Committee. The enquiry report concluded with the outcome that there is no embezzlement of funds as there was no evidence of personal use of Government Funds for personal gains.
The outcome of present report of FIA was contrary to its interim report and findings of Federal Audit. However, Science and Technology Ministry's observations were later confirmed by the special audit conducted by the Auditor General of Pakistan.
Subsequently, with the approval of the Prime Minister of Pakistan, Centre for Applied Molecular Biology (CAMB), Lahore under the administrative control of Ministry of Science and Technology, Islamabad were transferred to University of the Punjab, Lahore with effect from July 01, 2015 along with its manpower, assets and liabilities etc; vide the Science and Technology Ministry's notification dated 2nd and 30th April, 2015.