Auditors disclose secrets of NICL

Usman Manzoor
ISLAMABAD: The firm which evaluated the controversial lands for National Insurance Company Limited has revealed before the auditors that former NICL chairman Ayaz Niazi and his team had asked it to jack up the evaluated rates of 10 acres of land in Korangi, Karachi by hundred per cent and upon its refusal its service charges were withheld.

Tristar International has sent an email to the auditor of NICL accounts from 2008 to 2011 on the directions of the Supreme Court and has complained that the firm has gone into litigation against NICL because service charges of its evaluation reports were withheld by Niazi and his team. It merits mentioning here that the Korangi land was purchased by NICL management for Rs900 million while its actual price was around Rs400 million.

The email dated February 22, 2011 sent by Hassan Sabir, representing Tristar International, to Shahzad Ali Khan, Deputy Director Audit, says that Tristar was engaged for evaluation of land in Korangi, Karachi measuring 10 acres for which it sent the evaluation report to NICL. However NICL did not approve its honest assessment of the land, as they wanted the assessed rates to be escalated by 100 per cent. Upon refusal to do the same they denied Tristar's service charges for the same, for which Tristar went into litigation. It is worth mentioning here that the audit officer who asked about the record of NICL regarding Rs5 billion scam was implicated in an FIR by the NICL's current management and was even arrested by the police. The Sindh High Court accepted his bail a few days ago.

The contents of the email sent by Tristar International to the auditing team have been shared with The News by sources in NICL. The email of Hassan Sabir of Tristar International says: "With reference to our telephonic conversation kindly note that we are currently in civil litigation with NICL for recovery of amounts owed to M/s Tristar International and this email together with its contents is being sent without prejudice to the same and any liabilities whatsoever".

The acting chairman NICL, Tariq Puri, when contacted said that he has joined NICL much after these scandalous deals and has no idea of former chairman's connections and demands with the assessment firms. He said that the audit was doing its job and things will come forward. He said that he also did not have any idea what Tristar wrote to the audit officials. He was hopeful that all the deals of NICL would be settled as either the investment will be recovered or lands will be retained. A brief summary regarding our professional relationship with NICL is as follows:

- Tristar International was assigned to evaluate a plot situated at airport road Lahore measuring 20 kanals for which evaluation was conducted and report was submitted to NICL. The rate determined by our valuator was around Rs55 million (forced sale value) / kanal to which we adhere to even today. Our valuator utilised due care and honesty while conducting the valuation and the parameters used for determining the value of the said plot can be provided to you subject to a written request sent to us for the same.

- Tristar was also engaged for valuation of land situated at Mouza Toor Warraich which we refused as our assessed rates were not acceptable to the NICL management.

- Tristar also valuated a land of M/s Oasis Dream Resorts located on Multan Road Lahore. The payment for this valuation is still pending for which we have sought legal remedy.

- Tristar was engaged for valuation of land based in Korangi, Karachi measuring 10 acres for which we sent the valuation report to NICL. However NICL did not approve of our honest assessment of the land as they wanted the assessed rates to be escalated by 100 per cent upon refusal to do the same they denied us our service charges for the same, for which we have sought legal remedy as well.

Please note that we have maintained professional and honest conduct throughout our services however NICL's conduct has been the exact opposite of that. We are willing to provide any further information or help required by the Audit department and assure you our full cooperation in this matter."