NAB hands over possession of confiscated properties to FBR

KARACHI: The National Accountability Bureau (NAB) Karachi handed over possession of confiscated properties worth Rs 128 million to the Federal Board of Revenue (FBR), ARY News reported.

According to NAB statement, the properties were initially seized in a corruption case involving a former Senior Auditor of Sales Tax, Karachi. He was accused of accumulating assets beyond known income.

Following an investigation, NAB filed a reference against the accused, which led to a conviction in the accountability court.

The court imposed a fine of Rs14.24 million and ordered the confiscation of the properties. The accused later appealed the decision in the Sindh High Court (SHC), but the appeal was dismissed.

Subsequently, NAB secured possession of three confiscated properties and transferred them to FBR Karachi as per the court’s ruling.

In September this year, the NAB made the largest recovery in its 25-year history, retrieving Rs 168.5 billion related to the BRT Peshawar project.

The investigation into the Bus Rapid Transit (BRT) project began in 2018, amidst allegations of illegal contract awards and misappropriation of funds.

The case saw NAB rejecting contractors’ claims of Rs 31.5 billion in the International Court of Arbitration.

Investigations revealed six major contracts were wrongly awarded to specific companies, which later breached their terms. Over 400 bank accounts were inspected during the investigation, revealing further evidence of misconduct.

Read More: NAB recovers Rs168.5bln in BRT Peshawar case

The contractors submitted fake guarantees and delayed project completion, leading to Rs 86 billion in damages sought by the Peshawar Development Authority (PDA).

NAB’s efforts resulted in a saving of Rs 108.5 billion, along with an additional Rs 9 billion in financial expenditure saved by completing the project within its original cost framework.

The investigation revealed that contractors failed to complete work within the stipulated timeframe, with foreign companies stepping in to finish the projects.

NAB noted that the contractors had submitted bogus audit reports, and foreign companies were investigated through their respective embassies. A claim of Rs 5 billion was made by the contractors, citing cost increases, delayed payments, and interest costs.

Through NAB’s intervention, an out-of-court settlement was reached, finalizing payments at Rs2.6 billion.