ISLAMABAD: Despite clear directions from its prime decision body known as the syndicate, the Quaid-e-Azam University (QAU) has upheld amount to invest Rs 160 million in a low ranked commercial bank, Daily Times has learnt. According to available documents, the QAU in 2015 deposited Rs 160 million in the Dubai Islamic Bank (DIB) Sector G-9 Markaz, Islamabad, for a three-year time period and the bank is the lowest in the ratingas compared to other three banks who offered the university to avail their services. The amount of Rs 160 million was purely from the endowment funds that is the saving of the varsity while as per rules the actual amount would remain intact and the profit on this amount may be spent on scholarships, development, and any other development project in the varsity. The Syndicate which is the apex decision making entity of the varsity, held its meetings in April and September this year, had directed the university administration to get back the money from the DIB andinvest it in the best considered bank as per prescribed legal procedure. “The syndicate asked the university to get back their invested money from the DIB and re-invest the money on short term bases in any government approved bank. The Syndicate felt that the credit rating of DIB was not sufficiently high”, reads a copy of the draft minutes of the Syndicate findings, obtained by this correspondent. Due to time constraint this agenda item (Rs 160 million) could not have been discussed in the meeting. However, it was made a part of the concluded draft of minutes. According to the world’s best bank rating agency Moodys, the bank which holds ‘AAA’ is considered “Prime” while the bank which has a score of ‘AA’ is of “high status”. And the bank which has ‘A’ is included in the upper medium category. The DIB has A grade, while other two banks, HBL and Askari Bank Limited (AKBL) have ‘AAA’ and ‘AA’ scores respectively. Moreover, the profit rate of DIB was also less than the other couple of banks. The documents read that the AKBL in three banks, offered the highest amount for the annual and three years’ profit. The bank offered Rs 30.562 million profit amount for a three-year tenure, and the HBL stands second as it offered Rs 26.670 million for the depositing amount by the varsity. As per DIB policy the ratio of withholding tax on the depositing amount is also higher than the other two banks. Surprisingly, the DIB in a letter written to the varsity managementalso did not assure about the offered profits. “Being an Islamic Bank we cannot guarantee profits against yourinvestment with us. However, based on the aforementioned profitthe distribution procedure it is expected that the customer may earn 7.3 percent per annum against investment in the Mudaraba pool”, reads theletter of the DIB. Furthermore, as per university law it was mandatory for the varsity to announce a open bid and choose the best bank among them. The sources further added that the varsity’s in-house Investment Committee (IC), also not been taken in account in this regard, which is very illegal. In its report, the Auditor General of Pakistan (AGP) also discouraged the agreement with DIB. The report stated that the investment was made against the Finance Division’s instructions. According to the instruction the Finance Division had directed that the investment should be made with a bank under the new policy which says three least independent banks should take compete on the open bid. The QAU spokesperson, Ilhan Niaz, when contacted said that the varsity would comply the Syndicate directions. While explaining the causes of the delay, Naiz said so far the minutes draft has not been finally approved from all the members of the Syndicate.