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SC seeks FIA report on Axact scandal within 10 days

By our correspondents
January 20, 2018

ISLAMABAD: Chief Justice (CJ) Mian Saqib Nisar on Friday took a suo motu notice of the Axact fake degree scandal and sough report from the Federal Investigation Agency (FIA) within ten days.

The CJ took notice the Axact fake degrees scandal before taking up a suo moto matter relating to the vacant post in some federal and provincial courts and tribunals.

He asked Additional Attorney General Waqar Rana to come to the rostrum and explain the right of dignity under the constitution. He further inquired as to whether this right would also be extended to Pakistan whose name was tainted due to the alleged fake degree scandal of M\S Axact.

Waqar Rana submitted that Article 14 read with article 5 shall apply with full force to protect the dignity of Pakistan.

The CJ said that the news circling in media regarding fake degrees awarded by the Axact has brought Pakistan disrepute internationally.

“Our heads hang in shame due to the scandal,” the CJ remarked and warned that those bringing a bad name to Pakistan will not be allowed to go scot-free.

Waqar Rana responded that this court is alive and Pakistan’s name will never be disrespected. The CJ observed that news reports regarding the fake degree scandal are doing the rounds in local and international media and bringing a bad name to the country.

He further said that if the news reports regarding the scandal are correct, the activity should be curbed. He recalled that earlier, the scandal surfaced and cases, related to it are underway in courts.

He sought report from FIA within ten days and directed fixing of the instant case as well.

Axact claims to be the “world’s largest IT company” and operates hundreds of fake online universities run by agents from a Karachi-based call centre.

Axact’s chief executive was arrested and an investigation was launched by authorities after a New York Times expose` in 2015.

A senior manager of the company, Umair Hamid, was sentenced to 21 months in a US prison in August 2017 for his part in Axact’s fraud.

The Axact case came into spotlight in May 2015 when the New York Times published a report claiming the company was running a diploma mill, sold fake diplomas and degrees online through hundreds of fictitious schools/universities.

The FIA then registered an enquiry on May 19, 2015, M/s Axact Ltd, Islamabad region, for preparing and selling degrees of fake online educational institutions with fake accreditation bodies, enticing innocent people through impersonation as student councilors within Pakistan and abroad. Consequently, a raid was conducted on Axact’s DHA office.

Recently, BBC investigative journalists Simon Cox, Helen Clifton and Matthew Chapman exposed that Axact from its Karachi office had sold thousands of fake degrees to customers in Britain, including doctors, nurses and engineers.

Simon Cox said that the BBC investigation established that the USA remained the biggest market for Axact, followed by the Gulf Arab countries and Europe.

The BBC investigation found that over 3,000 fake degrees were sold in the UK “to various professionals such as doctors, nurses, psychologists and lawyers, people in responsible situations”.

According to the report, there were various counts of how much the Axact could have made in the last 20 years.

“The FBI estimates that the Axact has made around $130 million over 10 years but there are bigger estimates, sometime Axact made up to $50 million a year and that means that over a period of 20 years it could have made an estimated $1 billion”, says the report.

Last year in June, a sitting judge has allegedly admitted to receiving Rs5 million in bribe to acquit Shoaib Ahmad Shaikh, chief executive of Axact, in fake degree case.

Additional District and Sessions Judge Pervaizul Qadir Memon has reportedly made confession before the Departmental Promotional Committee comprising two judges of the Islamabad High Court including Justice Shaukat Aziz Siddiqui and Justice Mohsin Akhtar Kiyani.

On 19 August, 2017, the Islamabad High Court (IHC) completed disciplinary proceedings against (ADSJ) Memon. He was earlier provided an opportunity of hearing with the IHC Chief Justice Muhammad Anwar Khan Kasi, where he denied allegations of illegal gratification.

Meanwhile, Memon had filed departmental representation before a four- member committee comprising IHC judges. The committee from August 2017 till this time could not hold a meeting to decide the fate of Memon.