Saturday, August 16, 2014

Pakistan: Rs13m scam at University of Peshawar being hushed up

The Rs13 million scam at the Institute of Chemical Sciences, University of Peshawar, was tactfully hushed up by holding one senior clerk responsible for the entire mess, who managed to get bail before arrest (BBA), while the high-ups of the institute were given a clean chit.
The financial embezzlement had been made about one year ago, when Prof Dr Imdadullah was the director of the institute. The matter hit the headlines in various newspapers about a month ago, prompting the university administration to conduct an inquiry into the matter and fix responsibilities.
Sources said the funds had been withdrawn from the account of the institute for the purchase of chemicals and other equipment in violation of the set procedure. All the cheques were properly signed by the former director Imdadullah. Also, no purchase was made and the fund – Rs13 million – was embezzled, said the sources.
“Actually two inquiries were ordered into the matter, i.e. one fact-finding and the other procedural inquiry. The fact-finding inquiry has submitted its report and given recommendations, while the procedural inquiry is still investigating the matter,” said an official at the university administration.
He said the matter had also been reported to the Anti-Corruption Establishment and National Accountability Bureau (NAB), which would conduct separate inquiries. The university administration also lodged an FIR against a clerk of the institute, Arif Ismail, who confessed to misappropriating the funds and deceiving the former director.
The fact-finding committee headed by Prof Dr Gulzar held the clerk responsible for the entire scam. The committee also charged the former director with negligence and suggested halting his pension, the slightest punishment that can be made in such cases.
According to the committee report, the director did not know the procedure of fund withdrawal and the clerk deceived him, which is why they recommended the minimum punishment for him.
The committee also recommended stern action against the clerk and recovery of all the funds. The committee also suggested to put his name on the exit control list. The anti-corruption and NAB authorities are yet to probe the matter and take action, sources told The News.
The sources said the university administration dealt with the matter very tactfully and saved the skin of the former director. They said the clerk should be punished for misappropriation of the funds, but the matter was not that simple that only one clerk was involved in embezzling such a large amount.
“Currently, the clerk has confessed to have withdrawn the entire amount alone. But he can take back his statement at any stage. All this seems to be properly planned,” an official of the institute told The News on the condition of anonymity.
The sources said that every chairman or director was authorised to withdraw only Rs25,000 for the purchase or other needs from the account of his department, institute or centre. “If the fund exceeds Rs25,000, the vice-chancellor will give approval and even the vice-chancellor can approve fund up to Rs75,000 only.”
Even after the approval by the vice-chancellor, the funds can be withdrawn after thoroughly checking all the receipts, which should be signed by all members of purchase committee of each department, the sources added. Any amount exceeding Rs75,000 for purchase or other work would be advertised in newspapers and quotations would be sought from at least three companies, they said.
“In the case of the Institute of Chemical Sciences, funds amounting to Rs1,300,000 have been withdrawn on the signature of the former director without following any procedure and the committee finds him innocent, it is ridiculous,” said an official.
Prof Imdadullah, who retired from the university recently, is currently serving at the National Testing Service (NTS) in Islamabad. He could not be reached on his phone for comments despite numerous attempts.

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