Illegally granting multi-billion contract: Reference filed against ex-minister, eight others

LAHORE: The NAB has filed a reference against former Punjab minister for mines & minerals Muhammad Sibtain Khan along with eight other accused allegedly involved in illegally granting of a multi-billion contract to M/s Earth Resource (Pvt) Ltd (ERPL) with alleged abetment and connivance of Management of Punjab Mineral Development Corporation (PUNJMIN) regarding leasing rights of iron ore deposits located at Rajoa and Chiniot areas.

As per the reference details, NAB Lahore’s Combined Investigation Team (CIT) had launched a probe over an alleged lopsided agreement after being referred from the Lahore High Court that a mining agreement between M/s ERPL and PUNJMIN’s management for mining of huge iron ore deposits comprising 500 metric tons located in Rajoa and Chiniot areas of Punjab.

The inquiry was authorised against ERPL’s CEO accused Arshad Waheed and the management of PUNJMIN which later revealed that former minister Muhammad Sibtain Khan in abetment with officers of PUNJMIN allegedly with mala fide intentions permitted for landing into an illegal joint venture agreement between PUNJMIN and ERPL in July 2007 knowing the fact that M/s ERPL had no past experience in mining.

Moreover, the agreement was executed without administering any open competitive bidding process against public policy and national interest. Furthermore, the PUNJMIN agreed to awarding mining contract worth billions of rupees with simply 20 percent gaining partnership to a company (ERPL) having merely Rs2.5 million surety.

During the course of ongoing inquiry, NAB Lahore arrested prime accused Muhammad Sibtain Khan on June 14, 2019 while other co-accused namely ex-secretary Mines & Minerals Imtiaz Ahmed Cheema, ex-general manger Operations and Planning (O&P) accused Muhammad Aslam and ex-chief inspector mines, Punjab, accused Abdul Sattar were also nabbed.

Whereas remaining three co-accused namely ex-chairman Planning & Development (P&D), Punjab, Salman Ghani, legal adviser PUNJMIN/ex-director of ERPL accused Muhammad Shahid and PUNJMIN’s Managing Director Rao Manzar Hayat were arrested during the investigation process. Later, Rao Manzar Hayat turned approver against the chief alleged culprits of the scam.