Axact scandal: Declan Walsh says it’s investigative report, not table story

KARACHI: It is a broad and far-reaching investigative report and not a table story, Shahzeb Khanzada quoted these words of Declan Walsh, the reporter of the New York Times, while presenting his analysis on the probe on Axact’s fake degrees scandal in the Geo News programme ‘Aaj Shahzeb Khanzada Kay Saath’ on Thursday.
Ever since the fake degree scandal was exposed, the fraudulent IT company, Axact expressed its reservations and questioned the prestige and standing of the New York Times.
Axact labelled the report as pack of lies and a conspiracy. The reporter, Declan Walsh, in response asserted that he had not submitted a table story on Axact. He said he travelled to the United Arab Emirates and stayed there for three months to fulfil this fact-finding mission.
Shahzeb quoted Walsh, who stated that very useful and complete information was made known by an employee of the Axact through a phone call from Karachi. He gave links of some fake universities and a search for Belford and Rushville on internet very soon exposed that the matter was suspicious.
Shahzeb also quoted Walsh as saying that his probe efforts led to his contact with Yasir Jamshed, a former employee of Axact, who possessed important data of the company, which he had managed to secretly slip out from the company’s record.
Walsh also disclosed he luckily came across another witness in the UAE, who had bought a fake degree for $30,000. Walsh further said that he met a number of former employees of the company and continued deep study of its online activities. This gave to understand that the company, in its efforts to hide its business of fake degrees, kept its head office away. At the same time it established several companies in other countries. Declan Walsh also disclosed that the reporting desk of the NYT worked very well on the universities providing fake degrees. A comparative study showed similarities of the degrees and ownership of the universities. This probe gradually led him to finger prints of Axact.
Shahzeb said Axact Chairman Shoaib Sheikh has stated that he handles the services as back office of all universities. In case Shoaib Sheikh’s argument is that he used to provide services to all the universities, then one needs to ask why all of the fake universities handed their back office work to Axact. Isn’t it that Shoaib Sheikh accepts that Axact handles all affairs of these suspicious universities? Shahzeb forwarded yet another question whether only such suspicious universities are clients of Axact or other renowned universities avail it services, if so then where is the list of the other universities.
Shahzeb said out of 0.6 million shares of Axact, Shoaib and his wife own only two, while ownership of other shares is with a company Axact LLC, which is registered in Dubai but there is no owner of the which is not known. Shoaib Sheikh stated that he is the owner of the Dubai company. This is, however, a practice that many companies are registered in Pakistan while their major share-holding is in other such countries which are ‘tax heavens’, as no taxes are imposed there.
Shoaib’s statement that he enjoys tax exemption for being an IT industry owner then why he needed to open an office in the tax-free zone of Dubai.Sibt-e-Arif, a correspondent of Geo News in Dubai said the matter of fake degrees is also linked with Middle East countries. On information that company holding 99 percent shares of the Axact Group is in tax-free zone, and there is also a great number of students who had been scandalised with the fake degrees.
Sibt-e-Arif said the Axact Group had obtained a licence in the free zone authority and had set up a consultancy office. There was no local number written on the address. He also came to know that a person – Shoaib – had obtained the licence and an American cell number was given for the office. Later the office was shifted to Media City Dubai from the Internet City. The office of the Axact LLC is now at the sixth floor of the Thuraya Tower in Business Centre. There is only a six foot table. When we visited the office, the security guard said the office men seldom come there. We obtained an information that licence of the Axact LLC has been renewed in January and there some business is also going on there.
Senior analyst Muhammad Hanif said it took long for development of tendency of extremism. There is share of the present government in the development of this situation. In case a terrorist is educated then he must have read in the madaris or the universities. The people involved in brain washing are powerful and such people are present in educational institutions, madaris and universities.
The analyst said the tendency of terrorism did not develop overnight. It is not necessary to go to a madrassa or a university to become a terrorist. Just open a facebook account and that’s all. Our government had been telling the story that RAW was involved in creating terrorist mindset. There were others who said terrorism has its roots in madaris, and after recent incidents it has been found that such work also goes on in the Institute of Business Administration (IBA).
There could be three reasons for the development of terrorist mindset.The analyst pointed out that educated people had been ruling the country. It is not the issue of education but the issue is how education is being disseminated.
Whenever madaris are blamed then it is said the madaris are not responsible for it. It is the history that when an accused is arrested and he is alleged to have involved in all crimes that occurred in the city.
Senior analyst Mazhar Abbas said the decision to appoint Sohail Anwar as home minister is controversial. The appointment is not being seen with praise within the party and many other circles because he is a junior person. The appointment is also being disliked in the establishment and the Rangers. The deteriorated situation in Karachi and Sindh demands appointment of a senior and experienced person as interior minister. Sohail Anwar is understood to be close to Asif Zardari and perhaps that is the reason he has appointed as interior minister. A message has been conveyed to the establishment from the People’s Party.
It is possible this decision would not be appreciated and for this reason the decision would be reconsidered.Federal Secretary, Ministry of Finance, Waqar Masood said the government could not achieve the target of GDP growth due to floods, political instability and reduction in the prices of fuel. The government had also to postpone the privatisation of the Oil and Gas Development Corporation. However, he pointed out that a positive improvement has been seen in the economy of the country.