Islamabad: Pakistani military authorities
have constituted a court of inquiry to take action against
three retired army generals found involved in mismanaging the
funds of an army-run transport firm and causing losses of Rs
The Defence Ministry set up the court of inquiry
following persistent demands from the Public Accounts
Committee of parliament for action against the three former
generals who had served in the National Logistics Cell (NLC).
The move against the three officers was announced by
Public Accounts Committee chairman Chaudhry Nisar Ali Khan
during a meeting of the panel yesterday.
He described the development as a "proud moment".
Khan alleged that Prime Minister Yousuf Raza Gilani had
extended the service of a civilian who too was involved in the
The premier’s decision had "dealt a severe blow" to the
supremacy of parliamentary monitoring of government
departments, he said.
When the parliamentary panel was about to make its final
recommendations on the NLC scam in March, army chief Gen
Ashfaq Parvez Kayani approached it and sought some time to
look into the issue because it involved three senior army
officials, Khan said.
The committee waited for the army`s response till June
but it was not received.
The investigation into the scam had focussed on Lt Gen
(retired) Khalid Munir Khan (who headed NLC from January to
June 2005), Lt Gen (retired) Mohammad Afzal Muzaffar (who
headed the firm from June 2005 to October 2008) and Maj Gen
(retired) Khalid Zaheer Akhtar (who was director general from
July 2002 to January 2008).
On July 1, the PAC recommended disciplinary action
against all those found involved in the scam.
"Only last week, the Defence Secretary informed me that a
court of inquiry had been set up to proceed against the three
generals," Khan said.
According to reports prepared by the PAC, NLC officials
made large investments in the stock exchange during 2004-08 in
violation of government rules.
Besides borrowing money from commercial banks at high
mark-up rates, they used pension funds for these investments.
Large commissions were received from companies through
which investments of over Rs 4 billion were made in the stock
market. NLC suffered losses of nearly Rs 1.8 billion.