NAB files reference against directors of former teleco

ISLAMABAD: The National Accountability Bureau (NAB) Rawalpindi has filed a reference in Accountability Court Islamabad against Javed Feroz s/o Firoz-ul-Arfeen, Shahid Feroz s/o Firoz-ul-Arfeen, and six other directors of M/s Pakcom Ltd (Instaphone) in the matter of willful default by Pakcom (Ltd) on account of license renewal fee. PTA on 15.04.2005 gave option to Pakcom (Ltd) of either switching to Global System for Mobile (GSM) with 10 + 10 Mhz frequency bands OR Code Division Multiple Access (CDMA) with 7.38 + 7.38 Mhz frequency bands. Pakcom (Ltd) selected CDMA and signed the licence and first installment of licence fee amounting to $14.55 million was paid by M/s Pakcom Ltd on 18-04-2005.

In 2005, M/s Millicom (foreign investor) was the major shareholder of M/s Pakcom who left Pakistan and sold its shares to remaining directors of M/s Pakcom i.e. Javed Feroz and six others. In 2006, M/s Pakcom provided an undertaking to the Pakistan Telecommunication (PTA) that all the liabilities would be borne by them.

M/s Pakcom thereafter defaulted on subsequent payments of installments in lieu of licence fee and were issued show cause notices by the PTA.

The PTA provided considerable time period for payment of outstanding liabilities i.e. from 2006 to 2008, the licence of Pakcom was terminated by the PTA on 03.01.2008. M/s. Pakcom Limited (Instaphone) failed to comply with financial obligations in accordance with the terms and conditions contained in the licence and it failed to make the payment of outstanding dues.

Director General NAB Rawalpindi Irfan Naeem Mangi said that NAB officers/ officials are determined and committed to perform their national duty with absolute objectivity, thorough professionalism, and unimpeachable integrity and without any leanings for or against anybody.

He said NAB is striving hard to recover the looted wealth and huge defaults of government dues from the swindlers.