For the first time in the history of the country, Army's retired senior officers have been recalled, taken on strength and process of investigation has been initiated over their alleged involvement in multi-billion National Logistics Cell (NLC) scandal.
While commenting on NLC issue, an official of ISPR assured that the case would be conducted strictly in accordance with due process of law and those proven guilty of any corruption would be brought to book. In February 2009, he said, Public Accounts Committee (PAC) observed that NLC management had invested in stocks by purchasing shares of different enlisted companies/institutions, violating the NLC's board of directors (BoD) instructions.
The statement said that thereafter, Secretary P&D Division (Principal Accounting Officer) constituted an Inquiry Committee to probe into the irregularities. Findings of this Inquiry Committee were finalised in January 2010, it added. The recommendations of P&D Division inquiry concerning retired Army officers were subsequently referred to GHQ through Ministry of Defence (MoD) on September 20, 2010. "Court of Inquiry by Secretary P&D did not accuse any individual of NLC for embezzlement or financial misappropriation but for irregularities, lack of transparency and failure in observing rules and regulations", the statement stated.
On receipt of MoD's letter at GHQ, it added, the CoAS as a prescribed officer decided to proceed under PAA. In November 2010, a high level Army Court of Inquiry was convened, presided by an officer of the rank of Lieutenant General for the purpose of finding out initial facts. The inquiry report was submitted to CoAS in February 2011. On receipt of the findings of the Court of Inquiry, the CoAS opted formal investigation, says the statement.
It further said that the next legal step was to order a Summary of Evidence which was ordered in September 2011, adding that many documents produced also required forensic analysis for authenticity. "Moreover, the case necessitated not one but recording of four Summaries of Evidence which have now been completed and are under consideration of the competent authority", says the statement.
The ISPR said it was essential to bring the accused officers under PAA, therefore accused retired officers were taken on the strength of the Army. The accused officers had neither been re-hired nor reinstated, it added. Similarly, their calling back for investigations neither constitutes re-commissioning nor entitles them to pay, or any other privileges, it said adding that to improve its functionality, NLC was guided to apply four important corrections in its functioning ie restrict to core business as mandated by the government, exercise better financial and management control, seek due/formal approval of all decisions from NLB without exception and seek necessary professional advice.
As a result, NLC under direction of NLB has retired all its debt and bank loans amounting to approximately Rs 9.3 billion and has posted a net profit of three billion rupees at the close of financial year 2011/12. As of today, NLC is on a positive trajectory, involved in important projects all over the country.
When contacted to comment on the decision to investigate the issue by the GHQ, PAC Senior Member Yasmeen Rehman said that all the rules were violated. "Even the then prime minister's directive was put into waste bin", she added. Yasmeen further said that the accused not only invested two billion rupees into stock exchanges when it was volatile but also borrowed two billion rupees from commercial banks to put money at stocks. The NLC ran into losses because of actions of individuals which they were not authorised, she added.