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Fake accounts case: NAB claims access to official record

By Zahid Gishkori
September 18, 2019

ISLAMABAD: As investigation into multi-billion fake accounts scam moves forward, a combined investigation team of the National Accountability Bureau (NAB) claimed to find more evidences against Chief Minister Sindh Syed Murad Ali Shah.

"We have had an access to official record which showed that the subsidy of some Rs2.3 billion was provided to New Captive Power Plants from 2015 to March 2018 -- no fair ground was made by the Sindh government before releasing this huge public money. This was worked out retrospectively since March 2015 to 2017 when he [current CM Sindh] was serving as Finance Minister first and then Chief Minister Sindh," one of senior NAB officials closely associated with the ongoing investigation told this correspondent on Thursday. Some Rs1.58 billion (68.7 %) has been granted to four natural gas based power production companies of Omni Group, said the official seeking anonymity. "No law provided for any retrospective subsidy which was made by the then Chief Minister," he added. "And whereas during the course of inquiry it has been revealed that during the year 2017 you [Murad Ali Shah] being the Chief Minister Sindh and also holding the portfolio of Minister for the government Sindh has allegedly provided illegal subsidy to new capitve power plants operating in Sindh Region including period prior to promulgation of The Sindh New Captive Power Plants Subsidy Act 2017," read the NAB's call-up notice served on CM Sindh Murad Ali Shah by Deputy Director NAB Muhammad Kamran.

Chief Minister Sindh Syed Murad Ali Shah categorically denied the charges either leveled by Fake Accounts JIT or by the NAB team against him. "I've neither misused my authority nor discriminated while processing the subsidy amounts for uplifting of sick industrial units in Sindh," CM Sindh told the media the other day.

The Fake Accounts JIT in its investigation claimed that Omni Group for installation of its four captive power projects in 2011 – Shikarpur, Dadu Energy, Omni Power and Thatta Power –entered into an over invoiced project cost of Rs1.2 billion instead of actual cost (Rs588 million). The over invoiced amount of Rs660 million, added the report, was received by the Omni Group, according to JIT's findings that an amount of Rs390 million were paid to M/s Orient Energy System, FZE, Dubai through various front companies namely Spintex Textiles Trading LLC, Gateway Trading LLC, Barlas General Trading and Al-Zarooni Exchange in UAE. An amount of Rs270 million through fake accounts owned by M/s Lucky International, M/s Dream Trading and M/s Ocean Enterprise, revealed the JIT Report.

NAB investigations, sources told this correspondent, further found that CM Sindh allegedly facilitated the advancement of ‘misappropriated’ subsidies advanced in names of farmers and cane growers and annual tractor schemes (2013-2016) offered by the government of Sindh. Finance Department of Sindh, added the sources, illegally subsidised loans by tailoring to benefit Omni Group in operationalisation of new Captive Power Plants and in the name of revival of sick industrial units.

Government of Sindh released some Rs12 billion either in accounts of loans or subsidies to aforementioned schemes, a member of NAB investigation team explained that these Captive Power Plants entered into a high priced power purchase agreement with power distribution companies in Sindh, which was revised on the directions of NEPRA. But the subsidised power purchased agreements entered into with local DISCOs were never approved by NEPRA, revealed the NAB official adding that this establishes that the Sindh government was apparently tailoring specific legislation for financial gains of Omni Group.

NAB, in fake accounts case, has also been summoned former CM Sindh Syed Qaim Ali Shah on his alleged role to facilitate Omni Group and illegally allotting precious land to a third party on throwaway prices in Karachi. But Qaim Ali Shah told the press that “the NAB has been subjecting the PPP to political vengeance.”