ISLAMABAD, Pakistan: The Privatization Commission in collaboration with National Accountability Bureau (NAB) has recovered the Voluntary Return offer of Rs 404.5 million from Chairman Trust Investment Bank Limited (TIBL) Asif Kamal.
The decision was approved by the Executive Board of NAB in a meeting held on April 18, said a statement issued by the Commission here Wednesday.
Given that Rs 294.37 million had been recovered earlier, Privatization Commission will now be able to recover a total amount of Rs 698.87 million on account of Rs 500 million initial placement of funds with TIBL, it added.
In 2010, Trust Investment Bank Limited (TIBL) procured Rs 500 million of public money in two tranche including Rs 300 million and Rs 200 million respectively at the rate of return of 12.85 percent per annum for a period of one year.
It said the investment of Rs 500 million was made in violation of sections 14, 16, 18, 19 and 20 respectively, along with other enabling provisions, rules and regulations of the Privatization Commission Ordinance, 2000.
In February 2011, it was noticed that the investment made with TIBL was in breach of the Finance Division instructions, as well as the provisions of Section 14 of the PC Ordinance.
TIBL was therefore requested for an early withdrawal of the invested amount in February 2011. However, TIBL not only refused to return the amount but also expressed its inability to return the amount even upon maturity.
After liaising with Finance Division, State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP), PC and TIBL entered into a Settlement Agreement on November, 28 2011.
Whereby, TIBL deposited eight post-dated cheque with PC spanning over a span of 12 months for the repayment of principal outstanding amount of Rs 500 million while agreeing to service mark up at 14 percent per annum on the outstanding amount.
All the cheque got dishonored upon presentation and the PC was therefore constrained to lodge an FIR with FIA on November 11, 2012.
Subsequently, the Supreme Court also took a suo motto notice of the matter and directed FIA and NAB to investigate the matter along with the Finance Division and the Privatization Commission to ensure that every effort would be made for recovery of the amount invested with TIBL along with markup.
On July 3, 2013, an amount of Rs 294.37 million was recovered in lieu of Principal as well as markup against Rs 500 million; thereafter, no substantial progress could be made.
However, the current PC management started actively pursuing the matter before all forums and which has now finally been accepted by the defaulters and the Voluntary Return offer has been approved by the NAB authorities.