Rs 12.5 billion recoverable from two accused in NICL corruption cases

21 Jul, 2011

The National Insurance Company Limited (NICL) has asked the Federal Investigation Agency (FIA) to recover 10 times fine under the provisions of 'Integrity Pact' in the corruption committed by the accused in the transaction relating to 20 kanals of land situated at airport road, Lahore and 10 acres plot in Korangi, Karachi.
In two separate letters, one sent on July 6 to FIA, Karachi, and the other sent earlier on June 28 to FIA, Lahore, Saeed Aslam Raja, Executive Director (CS), NICL, desired that since the matter is of great public importance "quick action shall be appreciated."
In the case of Korangi plot, 10 times fine on Rs 450 million transaction comes to Rs 4.5 billion recoverable from one Khalid Anwar, while in the case of Lahore land, 10 times fine on Rs 800 million, comes to Rs 8 billion, recoverable from Mohsin Warraich.
In its letter sent to FIA, Karachi, on July 6, NICL had drawn the attention of FIA to the fact that "I had been corresponding with the representative of the seller for quite some time; responding to their offer, writing to FIA about it, getting NOC from FIA and requesting him/her to provide property title documents which are free from any encumbrance, lien/mortgage, litigation legal or any other hurdle in auctioning it in case of default on any proposed instalment payment through cheques. But almost three months have passed since NICL first received the offer from the seller and no legal progress has been made on this account till to date".
In addition to the aforementioned security, the seller Khalid Anwar had also entered into an "Integrity Pact" with NICL, as required under Public Procurement Regulatory Authority (PPRA) Rules 2004, to ensure transparency of the transaction against any kind of unfair means to obtain or induce the procurement of the deal under reference.
Under this pact he had categorically declared that in connection with this deal no commission, kickback, gratification, bribe or any fee, whether described as consultation fee or otherwise, shall be given, either directly or indirectly, to any person, whosoever, within or outside Pakistan. The party to the deal violated this pact that is why NICL is facing the brunt thereof and strenuous efforts are under way to recover the differential amount. Therefore, NICL requested that FIA take necessary steps, to recover/secure the amount due under the Integrity Pact from the seller Khalid Anwar.
Similarly, in its letter sent to FIA, Lahore on June 28 it drew attention to the settlement made with the seller of the said land during the course of FIA investigation under which Mortgage of 803 kanals of land was offered as security for timely encashment of 10 post dated cheques as payment of the differential amount. "Apparently it has hit some serious snags." However, the matter is currently pending in the court of Special Judge (Central) Lahore.
In addition to the aforementioned security, Mohsin Warraich had also entered into an Integrity Pact with NICL, as required under PPRA Rules 2004 to ensure transparency of the transaction against any kind of unfair means to obtain or induce the procurement of the deal under reference. Under this pact he had categorically declared that in connection with this deal no commission, kickback, gratification, bribe or any fee, whether described as consultation fee or otherwise, shall be given, either directly or indirectly, to any person, whosoever, within or outside Pakistan.
"As you know better than anybody else, the said party to the deal violated this pact that is why NICL is facing the brunt thereof and strenuous efforts are under way to recover the differential amount".
NICL, therefore, again impressed upon FIA to take necessary steps, to recover/secure the amount determined by the team of special audit ie Rs 800 million against the seller Mohsin Warraich who is liable to pay the same under the said pact. "Needless to add, this liability is essentially an integral part of the whole transaction and the other party has no valid excuse to find an escape from it," the letter said. Copies of the two letters were sent to Secretary Commerce, Ministry of Commerce and Chairman, NICL.

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