ISLAMABAD: The Bank of Punjab scam report, prepared by a team of investigators, led by an otherwise reputed additional IGP following SC orders, presents distorted facts to the advantage of the powerful who as reported earlier by The News were spared and favoured.
The report very conveniently suggests that Hamesh Khan, the BoP President, had shown the door to the then acting chairman Shahzad Malik after the latter was alarmed by the BoP-Harris Steel loan deal.
However, practically on the basis of documentary evidence, it was not Hamesh Khan but the then Chief Minister Punjab Pervaiz Elahi, who being the competent authority had removed Malik.
According to the report, “Mr Hamesh Khan, in his capacity as the President of the Bank, reduced this sleepy Board to a mere rubber stamp. In its 95th meeting of June 27/28, 2003, the Board agreed to Hamesh Khan’s desire to allow Board’s business to be conducted in circulation by two directors and the Chairman. This change deprived the Bank of the collective wisdom of its directors and also made it much easier for Hamesh Khan to manipulate the Board’s business. If the Chairman or a director refused to toe the line, he was shown the door, as happened with the Guard Group’s Mr Shahzad Ali Malik, who was first replaced as Chairman and then removed from the Board altogether in July 2007. He had raised a factual objection that the minutes of Board meetings were not recorded accurately and that the Bank’s President Mr Hamesh Khan and his General Manager Mr Azizul Hameed, who was Secretary to Board, manipulated them to their advantage.”
As per the official record and the law governing the BoP, the competent authority for the appointment of the Chairman and directors is the chief minister of the province. The report, while in case of Shahzad Malik’s removal distorted the facts to place all the burden on Hamesh Khan, also ignored to point out as to who was the authority for the appointment of “accused” directors and five chairmen who according to the report “exercised poor oversight and were grossly negligent” but still recommended to be spared from any action. The BoP sources insist that in the official record, it is crystal clear that all these appointments were made by the chief minister and not Hamesh Khan as portrayed by the report.
Shahzad Malik, who, according to the impression given by the report, was shown the door by Hamesh Khan, was on the record to have told The News last year that it was former Punjab Chief Minister Chaudhry Pervaiz Elahi, who had removed him initially as head of the Bank’s Board of Director (BOD) and later as its director because of his keenness to probe the BoP-Harris Steel case.
The report though reflected on Colony Group which was given over Rs5 billion loan by the bank in the presence of one of its owners in the BoP Board of Directors to buy Phalia Sugar Mill, belonging to the family of the then chief minister Ch Pervaiz Elahi, it strangely ignored certain important aspects of this very point despite having been highlighted by The News, which had not only unearthed the BoP scam but also did many exclusive follow up stories.
Independent experts are of the opinion that Phalia Sugar fair price was around Rs1.5 billion whereas through BoP loan money it was bought for Rs2.2 billion by one of the BoP directors from the family of the then chief minister. The investigation report did not reveal the fact that some businessmen like Jehangir Tareen were approached by Hamesh Khan to buy the Chaudhrys’ sugar mill from the BoP money.
Former federal minister and leading business tycoon Jehangir Tareen had revealed to The News that he was approached by Hamesh Khan to buy Phalia sugar mill, owned by the Chaudhrys of Gujrat, but he showed no interest to get into any such business deal. The MNA from Rahim Yar Khan is on record to have said that the former BoP President Hamesh Khan, the principal accused in the BoP scandal, had told him that he was given the mandate by the Chaudhrys of Gujrat to find a buyer for their sugar mill.
The probe team, though talked of the huge swindle, did not reflect on the reported Rs2 billion default of Gas Natural, reportedly owned by son-in-law of Gen Khalid Maqbool, ex-Govenor Punjab. The report did talk about some businessmen directors and about the BoP loan that they had received, but it did not mention a huge loan that was taken from the BoP for a real estate project by the son of a senior bureaucrat and director of the bank.
However, practically on the basis of documentary evidence, it was not Hamesh Khan but the then Chief Minister Punjab Pervaiz Elahi, who being the competent authority had removed Malik.
According to the report, “Mr Hamesh Khan, in his capacity as the President of the Bank, reduced this sleepy Board to a mere rubber stamp. In its 95th meeting of June 27/28, 2003, the Board agreed to Hamesh Khan’s desire to allow Board’s business to be conducted in circulation by two directors and the Chairman. This change deprived the Bank of the collective wisdom of its directors and also made it much easier for Hamesh Khan to manipulate the Board’s business. If the Chairman or a director refused to toe the line, he was shown the door, as happened with the Guard Group’s Mr Shahzad Ali Malik, who was first replaced as Chairman and then removed from the Board altogether in July 2007. He had raised a factual objection that the minutes of Board meetings were not recorded accurately and that the Bank’s President Mr Hamesh Khan and his General Manager Mr Azizul Hameed, who was Secretary to Board, manipulated them to their advantage.”
As per the official record and the law governing the BoP, the competent authority for the appointment of the Chairman and directors is the chief minister of the province. The report, while in case of Shahzad Malik’s removal distorted the facts to place all the burden on Hamesh Khan, also ignored to point out as to who was the authority for the appointment of “accused” directors and five chairmen who according to the report “exercised poor oversight and were grossly negligent” but still recommended to be spared from any action. The BoP sources insist that in the official record, it is crystal clear that all these appointments were made by the chief minister and not Hamesh Khan as portrayed by the report.
Shahzad Malik, who, according to the impression given by the report, was shown the door by Hamesh Khan, was on the record to have told The News last year that it was former Punjab Chief Minister Chaudhry Pervaiz Elahi, who had removed him initially as head of the Bank’s Board of Director (BOD) and later as its director because of his keenness to probe the BoP-Harris Steel case.
The report though reflected on Colony Group which was given over Rs5 billion loan by the bank in the presence of one of its owners in the BoP Board of Directors to buy Phalia Sugar Mill, belonging to the family of the then chief minister Ch Pervaiz Elahi, it strangely ignored certain important aspects of this very point despite having been highlighted by The News, which had not only unearthed the BoP scam but also did many exclusive follow up stories.
Independent experts are of the opinion that Phalia Sugar fair price was around Rs1.5 billion whereas through BoP loan money it was bought for Rs2.2 billion by one of the BoP directors from the family of the then chief minister. The investigation report did not reveal the fact that some businessmen like Jehangir Tareen were approached by Hamesh Khan to buy the Chaudhrys’ sugar mill from the BoP money.
Former federal minister and leading business tycoon Jehangir Tareen had revealed to The News that he was approached by Hamesh Khan to buy Phalia sugar mill, owned by the Chaudhrys of Gujrat, but he showed no interest to get into any such business deal. The MNA from Rahim Yar Khan is on record to have said that the former BoP President Hamesh Khan, the principal accused in the BoP scandal, had told him that he was given the mandate by the Chaudhrys of Gujrat to find a buyer for their sugar mill.
The probe team, though talked of the huge swindle, did not reflect on the reported Rs2 billion default of Gas Natural, reportedly owned by son-in-law of Gen Khalid Maqbool, ex-Govenor Punjab. The report did talk about some businessmen directors and about the BoP loan that they had received, but it did not mention a huge loan that was taken from the BoP for a real estate project by the son of a senior bureaucrat and director of the bank.
