RDA blames ex-officers for Rs1.94b scam
The authority has formally referred the matter to the Anti-Corruption Establishment (ACE), the National Accountability Bureau (NAB), and the Federal Investigation Agency (FIA) for action and recovery of losses.
According to an official statement issued by the RDA Director-General, Kinza Murtaza, serious irregularities have been identified in the financial records of the authority, causing substantial loss to the public exchequer.
The individuals allegedly involved include the retired Director of Admin and Finance, the late former DD of Finance, and the retired AD of Finance.
The DG emphasised that recovering the financial losses resulting from this corruption is imperative. She noted that legal recovery of the amounts due is possible within the framework of the law, including through attachment and confiscation of properties and assets.
Citing relevant legal provisions, she referenced section C-33 of the National Accountability Ordinance, 1999 for recovery of embezzled funds, sections 12 and 15 of the NAB Ordinance for freezing and confiscating assets, section 50 of the Code of Civil Procedure, 1908 (CPC) for recovery of civil liabilities from the estate of a deceased person, and Order XXII Rule 4 of the CPC to initiate legal proceedings against legal heirs after the death of an accused.
Murtaza has formally written to the NAB Rawalpindi, FIA, and ACE Rawalpindi, urging swift recovery of the embezzled amount.
Talking to The Express Tribune, sources revealed that senior officials, who served as DGs or Directors of Admin and Finance in the RDA over the past nine years, and who held signatory authority over financial matters, might also face action from NAB, FIA, and the ACE for failing to ensure transparency.
Meanwhile, the official residence of the late DD Finance was sealed in Civil Lines in the nine-year-old mega corruption scandal in the Authority. Despite 236 suspicious transactions involving the RDA's National Bank of Pakistan (NBP) account, transfers were made to eight companies and 12 individuals and the RDA's financial discipline remained silent, the sources added.
It is still to be determined which officials received vehicles in exchange for an Rs110m payment made to a car showroom.
Separate payments of Rs175.7 million, Rs339.44m, Rs161.412m, Rs264.45m, Rs393.16m, and Rs74,25m were paid to several companies and individuals.
Meanwhile, a probe committee appointed by the RDA DG says it is not currently in a position to identify the primary culprit behind the fraud.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Formation of commission to probe blasphemy cases: IHC suspends single bench's order
ISLAMABAD: The Islamabad High Court (IHC), Thursday, suspended a single bench's order of directing the government to constitute a commission within 30 days to probe blasphemy cases. A division bench comprising Justice Khadim Hussain and Justice Azam Khan issued the order in an Intra Court Appeal (ICA) filed by Rao Abdul Rahim advocate against the decision of Justice Sardar Ijaz Ishaq Khan. In the ICA, the petitioner urged the court to declare the single-bench decision null and void, and to dismiss the original petition as inadmissible. He maintained that the single bench exercised suo motu powers and issued directions without hearing the respondents' version. The petitioner further argued that the original petitioners had multiple legal forums available to them, including trial courts, but chose not to approach them. He said that forming a commission to probe criminal allegations contradicts established legal procedures and precedents set by the higher courts. In this connection, Justice Ejaz directed the federal government to constitute a commission within 30 days to probe blasphemy cases. He issued the directions in petitions filed by the victim families seeking formation of judicial commission to investigate the cases. The bench directed the federal government to form a commission within 30 days to investigate blasphemy cases. It also directed that the commission formed by the federal government must complete its proceedings within four months. In this matter, the victim families, represented by advocates Abid Saqi and Usman Warraich, had petitioned the high court for the formation of a judicial commission. They mentioned a report by the Punjab Special Branch titled 'The Blasphemy Business'. The report alleged that a suspicious gang had been entrapping youth in blasphemy cases and extorting money from them after filing complaints with the FIA in Rawalpindi and Islamabad. The petitioners asserted that this gang is the complainant in nearly 90 per cent of blasphemy cases registered by the FIA. It added that operating under the name 'Legal Commission on Blasphemy,' the group is said to be consisted of both men and women targeting poor and lower-middle-class Muslim families. They revealed that a concerning pattern emerges in the FIRs: out of over 400 alleged victims, 70 per cent are young men and women in their twenties or younger while many of the victims are professionals, including engineers, Hafiz-e-Quran, and degree holders in various fields. They further said that they had approached the federal government with a formal request dated August 4, 2024, seeking the formation of an inquiry commission on the Special Branch's report. However, no action has been taken to date. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
Vanaspati manufacturers threaten closure over tax
Listen to article The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite nationwide shutdown of ghee and cooking oil production if the Federal Board of Revenue (FBR) does not withdraw controversial tax enforcement powers within 48 hours. At a press conference following the association's General Body meeting in Karachi, PVMA Chairman Sheikh Umer Rehan said the strike was unanimously approved by members. However, the strike is on hold for two days due to ongoing FPCCI-FBR talks facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad. "We have delayed the strike by 48 hours, hoping that negotiations between FPCCI and FBR under SIFC supervision will bring results. If not, we will halt production across Pakistan," Rehan warned. According to a statement released on Wednesday, PVMA opposes new amendments in the Income Tax Ordinance in Budget 2025-26, particularly Sections 40B, 40C, 21S, and 8B. These allow FBR to monitor private businesses and grant power to arrest alleged defaulters without warrants under Section 37A. Rehan said these powers mirror the National Accountability Bureau (NAB), raising fears of arbitrary interference in commercial activities and would lead to harassment. "If NAB-like officers monitored the FBR chairman, could he work freely? Then how can we work under similar pressure?" he asked. PVMA highlighted its economic role, saying the sector is the second-largest taxpayer after petroleum. Rehan said the industry pays 35% tax on imports and 10% on sales but still faces raids and arbitrary rules. He also claimed that utility stores owe the industry over Rs6.5 billion, while billions in sales tax refunds remain unpaid. He added that the sector lacks capacity for immediate compliance with the newly introduced digital invoicing requirement. "Digitisation takes time and investment. We can't do it overnight," he said. The PVMA said it prefers dialogue but warned that if the government fails to act, it will proceed with a shutdown.
Business Recorder
a day ago
- Business Recorder
Currency smugglers: LEAs decide to intensify crackdown
KARACHI: Law enforcement agencies have decided to intensify their crackdown on currency smugglers and unauthorized money dealers, accordingly, on Wednesday, FIA teams conducted intelligence-based raids, contributing to a decline in the dollar rate in the open market. According to the Exchange Companies Association of Pakistan (ECAP), the action followed a meeting between ECAP Chairman Malik Muhammad Bostan and members with Director General (C) ISI, Major General Faisal Naseer, at his office in Islamabad on Tuesday. According a statement issued by the ECAP, during the meeting, Major General Faisal Naseer inquired about the reason of recent sharp increase in the exchange rate. In response, Malik Bostan explained that the surge is due to smuggling of dollars and other foreign currencies to Iran and Afghanistan. Additionally, he highlighted that agents of these smugglers trap customers outside legal exchange companies by offering better rates and then they take these customers to secret offices to buy foreign currencies at black market rates. This move of smugglers is preventing customers from reaching legal exchange counters and, due to higher rates in the black market the supply of dollars is decreasing daily. Bostan further mentioned that due to new FBR regulations, any purchase above Rs. 200,000 made in cash (rather than through banking channels) results in the imposition of tax on the seller. Consequently, many non-filer customers, to hide their identities, are buying and hoarding foreign currencies from the black market at large scale. He suggested that the government should not impose any tax on purchase of $2,000 in foreign currency. This would reduce the demand for dollars and help bring down the exchange rate quickly, he added. According to Malik Bostan, Major General Faisal Naseer responded positively and said he would discuss this proposal with the government. Moreover, he immediately ordered law enforcement agencies to launch a crackdown on currency smugglers and arrest them. As a result of this action, the smuggling mafia reportedly went underground by Wednesday. Bostan further said that on Wednesday FIA teams conducted intelligence-based raids, which led to a drop in the market dollar rate from Rs. 288.60 to Rs. 288, and in the interbank market, the rate dropped from Rs. 285 to Rs. 284.80 per dollar. Copyright Business Recorder, 2025
