CJ orders NAB probe into PCB ‘embezzlement’

Monday, January 4, 2010 at 7:16 PM
The chief justice has ordered that allegations of embezzlement of Rs7 billion by three former chiefs PCB be referred to the NAB for a comprehensive inquiry. — Photo by APP

ISLAMABAD: Chief Justice Iftikhar Mohammad Chaudhry has ordered that allegations of embezzlement of Rs7 billion by three former chiefs of the Pakistan Cricket Board (PCB) be referred to the National Accountability Bureau (NAB) for a comprehensive inquiry.

The issue was highlighted by Razaullah Khan of Karachi in an application requesting suo motu notice of the alleged misappropriation.

The applicant drew the attention of the chief justice to the fact that no action was taken by NAB although Prime Minister Yousuf Raza Gilani had issued a directive for an inquiry into the allegations.In a special audit conducted at the request of the sports ministry, Lt Gen (retd) Tauqir Zia who headed the PCB from Dec 14, 1999, to December 2003, Sheheryar M. Khan from Dec 15, 2003, to October 2006, and Dr Nasim Ashraf from Oct 7, 2006, to August 2008, were found involved in irregular expenditures of millions of rupees.

“Case be forwarded to the NAB chairman for disposal,” the chief justice ordered on Monday while taking suo motu notice of the applicant’s complaint.

The report prepared by the Auditor General of Pakistan (AGP) for the period from July 2003 to June 30, 2008, highlighted purchase of luxury cars, award of contracts without following prescribed rules, recruitment without advertising posts and mismanagement of PCB’s assets as a common practice during the stints of the three former chairmen.

The audit had objected to unavailability of essential documents and violation of rules by the board in carrying out directives of the Executive Committee of the National Economic Council (Ecnec) in implementing different projects.

PCB’s annual expenditures swelled from Rs571 million in 2004 to Rs737 million in 2005, Rs832 million in 2006, Rs1.024 billion in 2007 and Rs1.8 billion in 2008 when Dr Nasim Ashraf left the job soon after former president Gen (retd) Pervez Musharraf had resigned on Aug 18.

The PCB had a surplus budget of Rs1.051 billion in 2004 which dropped to a deficit of Rs130 million in 2008.

The chairmen exercised unlimited financial and administrative powers in violation of Article 35(2) of its constitution of 1995 which required its council (ad hoc committee) to specify financial powers of the chairman, the report said.

It said the PCB had entered into an agreement worth $42.6 million with a private television channel for the coverage of the game from 2003 to 2008 and despite repeated reminders no bidding documents were furnished.

The audit noticed wasteful expenditures on upkeep of 33 sports grounds where the board had no direct control or oversight. The board paid Rs7.14 million to two consultants for development projects which were later abandoned. Kit bags of Rs4 million were procured without floating tenders.

The finance committee of the PCB decided in 2005 that $1.1 million in its foreign currency accounts would be invested in local banks for better profits, but the decision was not implemented and the board suffered a loss of Rs66.89 million.
Tags: Chief Justice,Iftikhar Mohammad Chaudhry.PCB,NAB

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