NAB fails to make headway in MCB privatisation case inquiry

ISLAMABAD: Lawmakers of the Senate on Thursday expressed serious concern over the slow pace of National Accountability Bureau’s (NAB) investigation into the matter of Muslim Commercial Bank (MCB) privatisation, despite the Supreme Court deadline. SC had directed NAB to complete it before December 2015 (last year).

The committee which met here with Senator Saleem Mandviwalla in chair expressed dissatisfaction over the performance of the NAB saying that country's anti-corruption watchdog is not interested in digging out anything in MCB case. 

The committee also directed the Federal Board of Revenue (FBR) to provide details about its letter to Singapore Authorities with respect to money transfer by Residential Holding Company to London for purchase of 'St James Hotel' otherwise the committee would move privilege motion against the FBR.

Director General NAB, Zahir Shah informed the Senate's panel that Lahore High Court (LHC) has given restraining order against inquiry and final report in MCB privatisation case, which stopped the investigation. He said that NAB could not go against the decision of courts.

"Chairman NAB is not seriously interested in this case," said Senator Saeed Ghani of PPP. He further said that LHC has restrained the NAB from giving final report, not against conducting inquiry. He went on saying that Supreme Court of Pakistan had directed the NAB  to complete the inquiry in four months (before December 2015), which was neglected by the National Accountability Bureau. The NAB should have challenged the LHC decision in the Supreme Court, he proposed.

Mandviwalla said that NAB is dillydallying in this matter to save a specific person. The committee could ask the Chairman Senate to give his ruling in this case, as NAB, Ministry of Finance and State Bank of Pakistan (SBP) are not serious in investigation of MCB's privatisation case.

Interestingly, MCB was privatised in 1991. The anti-graft body initiated investigation into the issue in 2000 and was completed in 2002 and the report was sent to the State Bank in 2004. Since then the issue was dumped, but on the directions of the Supreme Court of Pakistan NAB started reinvestigation in July 2015 and was to be completed in four to six month as was directed by the apex court. 

Sharing details of the case, DG NAB said that they had completed 75 percent investigation of the case before LHC's restraining order. NAB had also visited State Bank headquarters in Karachi to get the details of the previous investigation of the case. 

The committee could not approve the 'Corporate Rehabilitation Bill 2015' due to opposition of the committee members despite attempt of the chairman of the committee to adopt the bill. Chairman of the committee wanted law to be made but was compelled by the committee members, Mohsin Leghari, Mohsin Aziz and Saud Majeed who want in depth comparative discussion on the law before adopting it. "We do not want adoption of any law in haste," they added. 

A senior official of Finance Ministry informed the committee that government intends to propose a new law on corporate rehabilitation soon after the finance minister returns from abroad. However, Mandviwalla stated the committee would not accept the government proposed law if the government does not accept the law proposed by the committee. Now the committee will take up the proposed law in the meeting to be held on May 10.