Axact fooled people, made millions

‘Aaj Shahzeb Khanzada Kay Saath’ on Tuesday

By News Desk
|
May 20, 2015
KARACHI: An IT company with the name ‘Axact’, based in Pakistan, robbed the people of millions of dollars. A former official of the American intelligence agency – FBI – considers the several million dollar scam to be the largest unearthed so far.
Presenting analysis in his programme on Geo News on Monday, Shahzeb Khanzada pointed out that the renowned and reliable newspaper New York Times reported that Axact is engaged in selling fake degrees of education through internet to thousands of people all over the world and befooling them and deprived them of millions of dollars.
Khanzada said it was being discussed as to what services the IT solution company claims it was providing and into what business it is involved. It was also being talked about the company’s clients and their connections and what are the sources of its huge earnings.
He said well-known journalist Declan Walsh disclosed in his investigative report published in the New York Times that the Karachi-based company Axact sells fake degrees. Walsh stated in his report that Axact has hundreds of online colleges and universities and is minting money through sale of bogus degrees. The variety of its courses extend from nursing to engineering. There is neither an exam for these courses nor any verification of the degrees is necessary. These institutions exist only in pictures and on website. In the same manner the students and teachers appearing on the websites are also fake and mere actors. The company earns millions of dollars through the same fake degrees from thousands of people.
Khanzada said the most heinous of all its crimes, the company sells certificates of the American State Department, some of which have also been found fake and bearing the signatures of the US Foreign Minister John Kerry.
Khanzada mentioned that the NY Times also published in Walsh’s report, which clearly show signatures of John Kerry. Each of these certificates is sold for

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thousands of dollars. Shahzeb said L N Diesel, a former FBI officer responsible for overseeing such frauds, holds the opinion that Axact case could be the biggest fraud known so far. But former employees of Axact say the main business of the company is selling fake degrees through internet throughout the world. They said the company is extending the scope of its activities with the increased popularity of online system of education.
Axact presents its fake colleges and universities in attractive manner so as to attract people all over the world. A former employee of the company said its sales agents are engaged in the business on telephone calls round the clock, although many of the customers know the fraud but their customers know they are buying suspicious but immediate degree for secure and lucrative job. In case any caller wants real education, he is turned to registration of a course, which does not exist at all.
According to the NYT report many of these fake institutions have been unearthed. A British court had sent to jail a person Jane Morison, who was posing a genealogy expert, the degree of which he had obtained from Rockville University of the Axact.
Similarly in 2003 Olympic Swimming Coach Drew Johnson was in the picture for holding a degree he had obtained from the Rockville University. There was yet another case in the US court relating to 30,000 complainants against Belford High School and Belford University. The court had imposed fine on Salim Qureshi, a Pakistani, to pay $259,000 as the address and contact of his office was found fake. Though Salim Qureshi denied any links with Axact but interestingly the address of the education institutions was that of the head office of the Axact.
According to the report, the prices of the fake degrees range from a few hundred dollars to thousands of dollars. Yasir Jamshed, a former employee of the Axact, who had shifted to the UAE sometime back and had taken along the record of 22 cases. It can be ascertained how much is the earning from this fraudulent business that the income from these 22 cases was more than $600,000. The victims of Axact’s fraud are all over the world.
Yasir Jamshed said fake degrees and certificates were sold to an Arab businessman for $400,000.Similarly an Egyptian businessman bought a degree in aeronautical engineering for $12,000 and an Indian national bought degree of these fraudulent courses for $38,000. Axact also sells aeronautical engineering degrees to airline employees and medical degrees to hospital employees. A nurse working in Abu Dhabi admitted she bought a medical degree from Axact for $60,000.
Shahzeb said the Axact refuted the allegations and termed it as a serious conspiracy against the company, however, the NYT report involves Pakistan into the scam. It brought bad name to Pakistan that such fraud is being done in the country and a great newspaper – the NYT – carried the defamatory story. It is important that Pakistan comes clean of these allegations and the company gives due response to the report. Khanzada said the company should respond to the allegations levelled by Walsh.
There are five questions that should be answered by the company and merely saying that the allegations were baseless and that the media houses of Pakistan are also involved in the conspiracy.
Khanzada asked the questions to Axact, the first is what are its products as it claims to the largest IT company of Pakistan? It should show that the blames regarding its products are baseless. It should give details of its products, which are generating foreign exchange for Pakistan. This is a question because all the companies engaged in the business show their products and hide nothing. It should, therefore, be better for Axact to show details of its products.
Khanzada’s second question to the company boasting to be the largest IT company, is that it should say who are its national and foreign clients. He said we question this as the leading software export company working for the last thirteen years is Net Civil Technology, which is also listed in the stock market. A visit to their website would reveal their products and also gives names of its important clients, where they are working and how many of their products they purchase.
His third question is why the name of Axact is not listed among software exporting companies of the country? If Axact is the largest software export company of the country then why its name does not exist in the list of such companies on the website of the State Bank of Pakistan.
The fourth question Shahzeb asked is why members of Pakistan’s Software Manufacturers’ Association know nothing about the products of Axact. Shahzeb said he met the CEOs of the leading IT companies to know what they knew about Axact. The said neither Axact attends the meetings of the association nor they know abut their products. They also did not know about the products of Axact. It is better they speak for themselves, they said.
The fifth question Shahzeb asked is if Axact consider its business is clean and transparent, it should bring forth the record of the tax payment it made during the last five years.
If Axact claims it earned through proper ways, by selling their products and through right clients, then the record should be shown to the public, their taxes paid to the government and the salaries they paid to their employees.
Shahzeb said if the company replies to these questions, then the serious allegations of the NYT against the Axact would prove false. Such allegation would make it difficult for other companies of Pakistan to perform.
Reply to these questions will evade suspicions and doubts.
Federal Minister for Religious Affairs, Sardar Muhammad Yusuf said it is incorrect to say there is no writ of the government. Pervaiz Rashid has given explanation in this regard that his statement was presented out of context. Pervaiz Rashid has forgiven the people who have giving statement against him and also those who posted banners against him.
The minister said there had been certain activities in Islamabad in the guise of madaris. He said the government has no agenda or intention of action against madaris. He said almost all madaris are engaged in dissemination of religious education. He said the ministries of religious affairs and education are working on reforms. They are working in collaboration with the provincial governments. He said the authorities of the Tanzeem-e-Wafaqul Madaris have accepted the responsibility for their registered madaris and have given a good response.
Sardar Yusuf said the government is observing the people posting banners. He said the information minister is a very serious politicians and it is not proper to display such banners against him after his clarifications.
Leader of Pakistan People’s Party, Qamar Zaman Kaira pointed out that several questions were raised after the speech of Corps Commander Karachi. It was extra-ordinarily highlighted and never before such live coverage was provided to any corps commander.
Kaira said the corps commander spoke about issues of Karachi. Whatever he said is the 40-year-old story and only the political parties or politics are not to be blamed for all what he said. He said we do not have any differences with the forces of Pakistan. He pointed out that the People’s Party has supported the ongoing operation and the Pakistani forces. Numerous issues exist in Karachi and we will have to improve our performance. He recalled that the People’s Party had initiated operation in Karachi when it came to power seven years earlier. The party started operation from its stronghold – Lyari.
Kaira mentioned that General Ziaul Haq, after assuming power, had gathered some forces against the PPP. He said Gen Zia formed Mohajir Qaumi Movement to counter the People’s Party. He said it was a fact that General Zia had no affiliation with any political party but he was the head of the army. Kaira said General Zia continued the game of dividing parties and making factions of his choice for 11 years.
There was politicians’ rule after General Zia but it was also divided. Benazir was given the federal government while Nawaz Sharif was handed over the provincial government. It was also not the game of political parties. The players of the game were clearly saying what they had done. The head of the ISI at that time had said the agency had formed the IJI, while General Aslam Beg had openly stated that he had distributed money. Kaira said an operation against target killing had begun during People’s Party’s tenure, which was headed by Naseerullah Babar. That operation was stopped by General Aslam Beg. Later it was the rule of Nawaz Sharif and how he came to power is known history of the country. Again there was operation in Karachi during Nawaz’s rule. Kaira further said General Pervez Musharraf remained head of the country for eight and a half years and supported the MQM in Karachi, while in other parts of the country he divided political parties and also formed new parties.
Special Secretary Health Dr Khalid Sheikh said the role of Karachi Water Board is very important in prevention of Naegleria. He advised that the Water Board to add chlorine to the water it supplies through its pumps.

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