SHC allows FIA to continue inquiry against IBA

The Sindh High Court (SHC) has directed the Federal Investigation Agency (FIA) to continue its inquiry against the Institute of Business Administration (IBA) and other private contractors pertaining to corruption and money laundering charges without any hurdle or impediment, but restrained the agency from arresting the applicants in the subject inquiry.

The IBA and others had challenged the FIA inquiry pertaining to corruption in public institutional funds, especially grants of federal and provincial higher education commission and endowments funds of the IBA, through awarding IT and infrastructural contracts and procurements to a selected contractors and vendors.

The FIA alleged that crime proceeds so accrued were also being laundered locally and abroad in the shape of moveable and immoveable properties by the executive beneficiaries.

A counsel for the petitioners submitted that the FIA inquiry and call-up notice alleged that the IBA was involved in corrupt practices although the institution had been imparting education to the public at large.

The counsel questioned the jurisdiction of the FIA to initiate an inquiry with regard to corruption and corrupt practices and argued that it was the domain of the National Accountability Bureau.

The counsel submitted that the FIA transgressed its jurisdiction while issuing the impugned call-up notices and requested the SHC to declare them illegal and unlawful. A federal law officer submitted that the applications were not maintainable and requested the high court to dismiss them.

A single bench of the SHC comprising Justice Omar Sial observed that the applicants had challenged call-up notices of the FIA, to which an interim stay order had been granted. The high court, however, recalled the interim stay order with regard to the inquiry and observed that the FIA may continue with its inquiry without any hurdle or impediment, but the applicants shall not be arrested in the subject inquiry. The SHC observed that the question of maintainability would be decided first before further proceedings with the matter.