EOBI corruption case: Court sends three AKD officials to jail

KARACHI: A court in Karachi has sent three officials of AKD Securities to jail for their alleged role in causing a loss of Rs290 million to the exchequer under shares of the Employees Old-Age Benefit Institution.

Last week, the FIA took the three suspects – CEO of AKD Securities Muhammad Farid Alam, Director and Head of Equity Operations AKD Securities Tariq Adam Ghumra, another director in the AKD Group and Muhammad Iqbal – into custody during a raid at their company offices.

According to an FIA report, the EOBI bought 17,350,000 shares of M/S Amtex Limited in two phases on August 16, 2010 and August 27, 2010 in two phases, with the approval of a two-member committee comprising the then-EOBI chairman Zafar Abbas Gondal and DG (Investment) Kanwar Khursheed Wahid.

The report said Gondal, Wahid, Convener (Investment Committee) Muhammad Iqbal Dawood, DG (F&A) Mirza Imtiaz and Director (Finance) Muhammad Ayub Khan violated the Senate standing committee and the Rule 3 (f) of EOBI (Investment) Rules 1979.

It says the FIA has arrested AKD Securities Limited CEO Muhammad Farid Alam, Director Tariq Adam Ghummar and Director Muhammad Iqbal, who have been accused of facilitating in buying the shares at higher prices and selling them at lower rates for the EOBI, causing a loss of over Rs290 million to the national exchequer.

Sending the accused to jail today, the court ordered the investigating officer in the case to complete the probe and submit a challan within 14 days.

The court asked the investigating officer why the remaining 19 suspects in the case had not yet been arrested. To which the IO replied that they were said to be residing in Lahore and Faisalabad, and that they are making efforts for their arrests.

Counsel for the accused, Shahab Sarki, said that a bail plea would also be submitted in court today.