Embezzlement of Rs 3.2bn in pension funds: NAB asks AG to compel DAO to appear before probe team

KARACHI: The National Accountability Bureau (NAB), Karachi has expressed its disappointment over the failure of the District Accounts Officer, Hyderabad to appear before its investigation tribunal and not providing the relevant pension record.

The NAB is investigating the alleged embezzlement of Rs 3.2bn in pension funds from the District Accounts Office, Hyderabad. It also asked the Accountant General, Sindh to compel the District Accounts Officer to appear before NAB along with the record.

NAB Karachi has warned that failure to adhere to their directives could be seen as a deliberate attempt to obstruct the investigation, and this non-compliance could lead to serious consequences under Section 31 of the National Accountability Ordinance (NAO) 1999, which carries penalties of up to ten years imprisonment.

According to the official correspondence NAB, Karachi is investigating reference No. 02/2023, the “State versus Mushtaq Ahmed Shaikh and others” on the allegation of embezzlement and misappropriation of Rs 3.2bn in pension funds of District Accounts Office, Hyderabad.

Muhammad Baqar Deputy Director (Coordination) of NAB, Karachi through a letter informed the Accountant General, Sindh, that NAB, Karachi on July 05, 2024, forwarded 1906 pension bills to the District Accounts Officer (DAO), Hyderabad with complete details of beneficiaries, Pension Payment Orders (PPOs) numbers, amount, approving authority, bank and its branch detail and date of approval. The DAO was directed to provide a record of the pension bills that have not been complied with. Furthermore, NAB issued two call-up notices to DAO, Hyderabad directing him to appear before the Combined Investigation Team (CIT) on August 12 & 30, 2024. The Accountant General, Sindh was duly informed for compliance. However, neither did the DAO, Hyderabad appear before CIT nor was the record provided, the NAB communication said.

Through the letter the NAB, Karachi warned that this non-compliance by the DAO was tantamount to hampering the investigation and the Bureau would be constrained to proceed against him. The AG was further asked to direct the District Accounts Officer, Hyderabad to appear before the Combined Investigation Team along with the complete sought-after record.

As per official documentary evidence available in 2022, Dr. Mushtaq Shaikh, Ashraf Janwari, Naveed Bajari, Saifullah Magsi, Aijaz Ali Dawach, Majid Ali along with 80 others, were booked by the National Accountability Bureau (NAB) Karachi for allegedly misusing their authority and misappropriating Rs3.2 billion from the pension accounts in District Accounts Office (DAO), Hyderabad. It was done through fake pension vouchers in collusion with one another over a long period from 2010 and 2017. The money was then deposited in Dubai and other countries. These accused were also charged with money laundering from Pakistan to Dubai and other foreign destinations.

NAB had found all 84 suspects to be involved in embezzling Rs3.2 billion from the pension accounts in the DAO, Hyderabad through fake pension vouchers causing losses to the national exchequer. The NAB filed a preliminary chargesheet before the Accountability Court, in Karachi and further investigation is underway.