Three APP Staffers Face Legal Action for Rs 124 Million Fraud

Shazia Mehbob

Islamabad: After uncovering concrete evidence of financial scam worth over Rs 124 million, the Federal Investigation Agency (FIA) has registered a case and initiated legal proceedings against three senior staff members of the Associated Press of Pakistan (APP), the PenPK.com has learnt. 

As per documents obtained by PenPK.com, the implicated senior staffers are identified as Project Director Muhammad Ghawas, Deputy Director IT Musawar Imran, and Chief Computer Engineer Saad Mudassar.

“Despite the fact that the financial proposal of M/s Arttek Systems was not approved by the competent authority, i.e., MD APPC, as evident from the minutes of the 8th meeting of the procurement committee to facilitate M/s Arttek and for clearance of their bills from AGPR for their personal gain, Prima Facie, a case is made against the following persons for fraud, forgery, criminal breach of trust, criminal misconduct, violation of governing rules, abuse of authority, and misappropriation of government funds while causing huge loss to the public exchequer,” the FIR document states. 

Following investigation No. 169/2023, prompted by a complaint from Muhammad Asim Khichi, Managing Director of the Associated Press of Pakistan Corporation (APPC), it has been confirmed that the Procurement Committee of APPC has caused a loss of approximately Rs 124.96 million to the public exchequer, the document adds. 

Read More:https://thepenpk.com/brt-faces-rs4-billion-losses-annually-pda/

This loss stems from the actions of the procurement committee of APP Corporation (APPC), which colluded with contractors such as M/s Arttek Systems, M/s Tejaria, M/s Cammtel, and M/s New Horizon. These actions represent flagrant violations of the procurement process in the project titled “Reconstructing News Operations by Replacing Outdated Equipment with Modern Cutting-Edge Technology.”

As a public sector organization, APP received funding for its operational development through the Public Sector Development Program (PSDP) fund. Under PSDP-2023-2024, the APP  competent authority was tasked with establishing a state-of-the-art data center, upgrading news operations, and procuring necessary equipment.

It’s worth noting that this is the first instance of a significant financial scam being uncovered in the history of APP since its establishment in 1947. 

The APP staffers under investigation have been suspended from their positions. However, they will continue to receive their basic salaries until a court decision is reached. Upon contacting the APP management, it has been confirmed that the FIA has registered a case regarding the financial scam. 

Fake Letter Recruitment  

In the second scandal, four APP staff members are under scrutiny for allegedly issuing fake recruitment letters to their family members or relatives.

According to the APP Fact-finding committee (FFC) report, “Illegal activities were taking place in Room No 55 which was occupied by suspended manager HR Asif Iftikhar, suspended Special Assistant Accounts Moazzam Javed, suspended Special Assistant HR Haseeb Ahsan and suspended junior clerk Afzal Hans.” 

Sources within APP, speaking anonymously, disclosed that these individuals were suspended from their positions due to their alleged involvement in fraudulent activities. However, they displayed resistance when asked to vacate their offices.

“The FFC found many illegal appointment orders , joining orders and joining reports in the hard and soft form,” the FFC report stats. 

Approximately two dozen individuals who were hired based on fake letters have been uncovered by the APP FFC, as per FFC report. The investigation into this scam is currently being conducted by the probing agency.

Read More: https://thepenpk.com/public-forum-speakers-show-concerns-over-influencing-judiciary/

Meanwhile, yet another financial scandal involving millions is under investigation, as sources requesting anonymity have revealed. A fact-finding committee has been established to initiate an inquiry into the matter. 

This marks the third consecutive financial scam within a year in the history of the APP. This time, it involves the employees’ provident fund. The fact-finding committee will conduct an inquiry into this scam, and upon completion, the findings will be forwarded to the FIA for investigation and subsequent action, with approval from the relevant ministry, according to the sources.

The complexity of the financial scam extends further, according to top officials at APP, who have raised concerns about the presence of a union mafia within the organization. This union is alleged to be supporting those involved in the financial scams.

This situation underscores a historical challenge where influential individuals implicated in such scams have evaded accountability.

It is noteworthy to mention that, according to government rules, despite fraud and cheating being established against staff members, they are entitled to receive their basic salaries until a court order dictates otherwise.