Daily Times

ISLAMABAD: A whopping amount of hard earned money —over Rs 4 billion of hapless government employees collected from them on account of benevolent fund and group insurance –has been put at stake by investing it in non governmental organisations amid the reports that not a single penny out of this investment has accrued as profit since the last five years.

Non governmental financial organisations have refused to return the principal amount not to speak of the mark up.

This huge amount was invested by Zardari government officers in non governmental financial institutions.

A report forwarded to the Public Accounts Committee (PAC) said that the Benevolent Fund and Group Insurance administration had purchased Term Finance Certificates (TFCs) of Pak-American Fertilizer Company. It was made binding on the company under an agreement that it would pay profit every year and return the principal amount after five years.

According to report this investment has been made illegally in defiance of rules and regulations. The company has paid only Rs 80 million on account of profits during the last five years and the remaining amount is being withheld.

The fund management filed a complaint in writing to the Security Exchange Commission of Pakistan (SECP) against the company after it refused to return the principal amount.

The report said that being the amount dumped with the company, no payment has been made to the employees on account of welfare fund nor has any other financial benefit been accrued.

The officers who had invested in the company against rules and regulations are being identified now. The responsibility will be fixed and punitive action will be taken against the officers found responsible.

The report reflected that the benevolent fund management had invested over Rs 3 billion in non governmental organisations in 2012 and its record has been destroyed. No law is in place for making investment in non governmental financial organisations. Funds board had allowed to make this heavy investment and now this huge money stands dumped.

The law allows making investment in construction, plazas and real estate so that profit is earned in the form of rent every month. But the former administration had invested in favourite non governmental organisations causing monumental loss to the national exchequer.

The report also revealed that former members of the Benevolent Fund Board were receiving Rs 12 million extra in the form of pays and perks and directives had been issued for recovery of this amount from them. This heavy amount had been paid to them in the shape of house rent, conveyance allowance and medical allowance.

The PAC will investigate into these corrupt practices after Eid ul Fitr and decide about the accountability of the officers found responsible in this scam.

When contacted the officer of the respective ministry refused to offer his comments.

Most probably the four billion investment made in non government organisations will be referred to the NAB for investigation and initiation of punitive action against the officers found responsible in this scam.