ISLAMABAD: The National Accountability Bureau (NAB) is preparing to launch an inquiry against JS Investments for defrauding the National Insurance Company Limited (NICL) of Rs 2 billion after Sindh High Court (SHC) allowed the anti-corruption watchdog to investigate the scandal in light of a Supreme Court verdict. A two-member bench of the SHC headed by Justice Salahuddin allowed NAB to investigate the scandal as it did not violate the stay order granted to JS Investments by the court. The court observed that the NAB had not been provided answers to its questions by the company hence it could not be stopped from the investigation. Earlier, NAB was ordered to investigate into the scam through a suo motu taken by Supreme Court wherein Auditor General of Pakistan had identified a loss of over Rs 255 million caused to the NICL by JS Investments – the loss amount runs into billions of rupees if opportunity cost is taken into account. The JS Investments used various tactics to hinder the investigation process though illegal means when NAB started investigation. The JS Group company had caused the NICL to invest an amount of Rs 2 billion in the JS Principal Secure Fund I in clear violation of the Finance Division’s instructions dated July 2, 2003, wherein the approval provided for the purpose was only for Rs 200 million. The auditor general of Pakistan in its report identified illegal and unjustifiable practices of JS Mutual Funds such as charging excess backend load of 5%, etc, besides violation of instructions issued by the Finance Division. When NAB started inquiry into the matter, it was challenged by the JS Investments in the court making FIA, NAB and SECP as respondents and fraudulently obtained a restraining order on April 23, 2014. On February 11, 2015, FIA Inspector Gulsher Mugheri on behalf of FIA, NAB and SECP submitted an incorrect statement before the court stating that nothing could be established against the accused therefore the competent authority had ordered to close the inquiry. Meanwhile an intervener joined the proceedings and revised FIA report was submitted to the court wherein it was identified that JS Investments Directors Ali Raza Siddiqui, Munawar Siddiqui and Najam Ali were involved in causing loss to the NICL. On October 19, 2016, the Sindh High Court ordered that NAB should conduct investigation against NICL for Rs 2 billion investment scam and the petitioner would render necessary cooperation by providing all information to the NAB as and when required. In September 2017, NAB found substantial evidence of involvement of JS Investments directors in the NCIL scam and referred the matter to the SHC seeking permission for investigation. NAB informed the court that the JS Investments had refused to provide information to it in violation of court order and that without its active participation a proper investigation could not be completed. After hearing NAB, intervener, JS Investments and the additional attorney general, the SHC ordered NAB to conduct investigation against the company for defrauding NICL as per the direction of the Supreme Court. Published in Daily Times, December 9th 2017.