KARACHI: The Federal Investigation Agency (FIA) has registered a corruption case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, alleging unauthorised tax refunds running into billions of rupees were issued during his tenure, according to an FIR lodged with the FIA Anti-Corruption Circle, Karachi.
Zaidi is a Pakistani chartered accountant and former senior partner at AF Ferguson & Co (PwC Pakistan). He was appointed FBR chairman in May 2019 and left the post in early January 2020.
The first information report (FIR), filed on October 29 by Inspector Muhammad Iqbal on behalf of the state, invokes Section 5(2) of the Prevention of Corruption Act, 1947, read with Section 109 of the Pakistan Penal Code.
Assistant Director Nand Lal of the FIA Anti-Corruption Circle has been tasked with the investigation. The place of occurrence is listed as HBL Plaza Branch, II Chundrigar Road, Karachi.
The FIR alleges that Rs16 billion in refunds were “unauthorisedly disbursed” to entities that were clients of Zaidi prior to his appointment as FBR chairman.
The document lists alleged amounts as follows: Rs10 billion to Habib Bank Limited (HBL); Rs2 billion to Engro Corporation; Rs1.5 billion to Standard Chartered Bank (SCB); Rs1.5 billion to Muslim Commercial Bank (MCB); Rs0.5 billion to DG Khan Cement; and Rs0.7 billion to Maple Leaf Cement.
The FIR further states that during Zaidi’s tenure (May 10, 2019 to January 6, 2020), an amount of Rs8,964,500,000 dated September 29, 2019 was issued in favour of HBL “in collusion with FBR staff”.
The amount was credited to the Central Depository Company account of HBL Treasury Division through income tax bonds/shares of Rs100,000 each, totalling 89,645 bonds, with a maturity date of September 29, 2022.
The refunds pertained to tax years 2005, 2006, 2007, 2012, 2013, 2014, 2016 and 2017, the document adds.