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An accountability court indicted Transport Department officials for irregularities in the Lahore Mass Transit System (LMTS) project on Thursday. The court framed charges against former Transport Department cashier Shamshad Gulzar, former section officer Muhammad Shahnawaz, Accounts Officer Syed Tahir Mahmood Sherazi, AG Office Punjab Assistant Accounts Officer Arshad Iqbal, AG Office Punjab Senior Auditor Hafeez-ur-Rehman, Muhammad Afzaal Gulzar, Farhat Gulzar, Muhammad Azam Shamshad and Kamran Gulzar.
A reference had been filed against the accused officials on charges of embezzlement of Rs 393 million funds allocated to the LMTS project. The Punjab government had awarded a feasibility contract of the $ 4.4 billion-project to MVA Hong Kong for Rs 94 million and a reference designing contract to Systa France for Rs 768 million. Former cashier Shamshad and former section officer Shahnawaz were designated to process the bills of the consultants.
Shamshad and Shahnawaz embezzled Rs 393 million from the funds allocated to Systa France through 13 bogus bills on behalf of MVA Hong Kong. Both forged an authority letter on behalf of the Federal Board of revenue (FBR) and deducted withholding tax at the rate of 3.5 percent but mentioned in departmental cashbook that it was deducted at 15 percent. In this way, they misappropriated Rs 7.3 million. Former accounts officer Sherazi and Hafeez-ur-Rehman accepted the said authority letter without demanding to produce the notification issued by the FBR in this regard.
Shamshad opened two accounts with his wife in NIB, Bank Square Lahore branch under the account numbers 0201-0048690 and 0201-542401-01, transferred the misappropriated money in his wife’s account and then in his own. He transferred Rs 30 million in a joint account (No 52102005628301) in Bank Alfalah Gulshan Ravi branch and then through pay orders purchased properties in the name of his wife and children.
Shamshad credited Rs 156 million to Shahnawaz’s account, who afterwards purchased three shops and a house bearing (no 128-A Gulshan Ravi) in his own name. He purchased the following four cars in his own name: GLI (LED-07-3132), Civic (LEH-07-3435), GLI (LEB-08-3536) and Prado (LEJ-07-4142), and Santro (LWQ-0115) in the name of his wife Shummaila. He also started a jewellery business; Abu-Bakar Jewelers. Co-accused Saba Javaid, Umer Farooq, Javaid Yousaf, Imran Yousaf and Rakhshanda Shahnawaz were released after they entered into a plea bargain with NAB in the early stage of investigation.
An accountability court indicted Transport Department officials for irregularities in the Lahore Mass Transit System (LMTS) project on Thursday. The court framed charges against former Transport Department cashier Shamshad Gulzar, former section officer Muhammad Shahnawaz, Accounts Officer Syed Tahir Mahmood Sherazi, AG Office Punjab Assistant Accounts Officer Arshad Iqbal, AG Office Punjab Senior Auditor Hafeez-ur-Rehman, Muhammad Afzaal Gulzar, Farhat Gulzar, Muhammad Azam Shamshad and Kamran Gulzar.A reference had been filed against the accused officials on charges of embezzlement of Rs 393 million funds allocated to the LMTS project. The Punjab government had awarded a feasibility contract of the $ 4.4 billion-project to MVA Hong Kong for Rs 94 million and a reference designing contract to Systa France for Rs 768 million. Former cashier Shamshad and former section officer Shahnawaz were designated to process the bills of the consultants.
Shamshad and Shahnawaz embezzled Rs 393 million from the funds allocated to Systa France through 13 bogus bills on behalf of MVA Hong Kong. Both forged an authority letter on behalf of the Federal Board of revenue (FBR) and deducted withholding tax at the rate of 3.5 percent but mentioned in departmental cashbook that it was deducted at 15 percent. In this way, they misappropriated Rs 7.3 million. Former accounts officer Sherazi and Hafeez-ur-Rehman accepted the said authority letter without demanding to produce the notification issued by the FBR in this regard.
Shamshad opened two accounts with his wife in NIB, Bank Square Lahore branch under the account numbers 0201-0048690 and 0201-542401-01, transferred the misappropriated money in his wife’s account and then in his own. He transferred Rs 30 million in a joint account (No 52102005628301) in Bank Alfalah Gulshan Ravi branch and then through pay orders purchased properties in the name of his wife and children.
Shamshad credited Rs 156 million to Shahnawaz’s account, who afterwards purchased three shops and a house bearing (no 128-A Gulshan Ravi) in his own name. He purchased the following four cars in his own name: GLI (LED-07-3132), Civic (LEH-07-3435), GLI (LEB-08-3536) and Prado (LEJ-07-4142), and Santro (LWQ-0115) in the name of his wife Shummaila. He also started a jewellery business; Abu-Bakar Jewelers. Co-accused Saba Javaid, Umer Farooq, Javaid Yousaf, Imran Yousaf and Rakhshanda Shahnawaz were released after they entered into a plea bargain with NAB in the early stage of investigation.
