President Alvi Takes Action Against Nepotism in FBR

Shazia Mehboob

Islamabad: President of Pakistan Dr Arif Alvi has brought to attention an issue concerning nepotism and corruption in the selection of legal advisers within the field formations of the Federal Board of Revenue (FBR).

In response, the President has directed the FBR chairman to thoroughly investigate the matter and ensure transparency, as well as strict adherence to the law and prescribed instructions in the appointment process.

In a complaint submitted in the public interest, Dr Alvi has addressed the issue of uncovering dubious practises within the revenue authority; specifically, the matter concerns putting an end to nepotism and corruption in the selection of legal advisers by diverse field formations of the FBR.

The President, through a recently issued order in Representation No., has forwarded this sensitive issue to the FBR chairman. The President’s order explicitly states, “Complaints have been filed highlighting concerns of nepotism and corruption in the appointment of legal advisers by FBR’s various field formations.” A hearing for this matter has been scheduled for October 19, 2023.

Anonymous sources with knowledge of corruption and unethical practices within the FBR said that an estimated 25,000 individuals are employed by the FBR with around 2,000 allegedly involved in corrupt practices. The insider reveals that the regulatory body is purportedly implicated in corruption amounting to at least Rs1000 billion annually. This situation has severe repercussions, leading to a substantial loss of Rs7000 billion to the exchequer, the insider added.

Advocate Waheed Shahzad Butt has appeared, while noticeably, no representative from the revenue authority has attended despite prior notification. The learned counsel has asserted that he possesses specific information and evidence regarding individuals serving on the FBR’s panel.

These individuals, he claims, concurrently represent the FBR in judicial proceedings while also acting as legal representatives for private parties involved in cases against the FBR. This situation raises concerns about potential conflicts of interest and warrants a thorough investigation and remedial action.

The documents available with Thepenpk.com asserted that the FBR has neglected the Standard Operating Procedure (SOP) related to Panel Advocates, as outlined in Communication No. 8(71)S(P.A.)/2021 dated August 23, 2021, and the letter dated February 15, 2022 with Communication No. 1(73)SS(A&A)/2016/VOL-VIII/PT.

Additionally, there appears to be a violation of the terms and conditions expressly agreed upon by the panel advocate, as stipulated in the letter with Communication No. 9/19/Lit/2018 dated April 19, 2018. This document explicitly states that the advocate “is not authorized to enter appearance in any case against FBR or its field formations.”

Despite these clear terms, a panel advocate appointed by the FBR has allegedly appeared before the Islamabad High Court (IHC) in a Writ Petition on behalf of petitioner tax employees against respondent No. 2, who is the FBR chairman. Such actions raise serious concerns about compliance with established procedures and agreements, necessitating a thorough review and appropriate corrective measures.

The serious allegations raised require thorough examination by the FBR chairman to guarantee transparency and strict adherence to relevant laws and regulations. In accordance with the President’s decision, as articulated earlier, it has been decided that the matter will be remitted to the FBR chairman for careful consideration.

This directive from the President emphasizes the importance of addressing the allegations and ensuring a fair and lawful resolution to the issues at hand.