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August 30, 2000

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Pak paper alleges defence deal kickbacks

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At least 20 retired top army, naval and air force officials of Pakistan, including three army chiefs, were involved in a whopping one billion-dollar kickbacks in several controversial defence contracts, the Daily News has reported in Islamabad.

The national accountability bureau of Pakistan has documents, which provide enough evidence for launching a full-scale probe against these officials for receiving commissions in purchases of tanks, submarines, naval mine hunters, Mirage fighters and jeeps.

Among those involved in the kickbacks are former two naval chiefs and an air force chief, besides three army chiefs.

However, the paper said while the bureau had launched prosecution against many politicians, bureaucrats and businessmen, it was hesitant on taking action against the top military brass involved in shady deals. The bureau was barred from investigating corruption charges against serving defence officials, but there was no restriction in investigations into past defence deals.

While most controversial deals have not yet been touched by the bureau, it is trying to seek the extradition of former naval chief admiral Mansural Haq from the United States in connection with investigations into a controversial submarine deal.

Documents indicated that Direction Des Constructions Navales International of France had made an indirect payment of five million dollars to the admiral for over invoiced upgradation project for three Agosta B submarines.

The paper said the former naval chief had left his daughter's residence at Texas for an undisclosed destination. It is learnt that some Pakistani officials tipped him off on the government's decision to seek his extradition.

In another case, Commodore Shahid, a former director of naval intelligence, who was court martialled to seven years imprisonment for his alleged role in the submarine deal had been pardoned after three months of conviction.

The paper also referred to kickbacks in the 250 million-dollar Edrain class minesweepers. The bureau has not questioned admiral A U Khan and rear admiral Mujtaba, two senior officials, who played a crucial role in the purchase of Agosta submarines.

The bureau documents also indicated the role of former director general, defence procurement, rear admiral Saeed Akhtar in the Mirage deal, which was conctuded during air chief marshal Abbas Kathak's period.

Saaed left his job and migrated to Europe amid reports that there were 20 million-dollar kickbacks in the controversial Mirage deal. Even dismissed vice chief of air staff Arshad Chaudhary offered to prove kickbacks and commission from land deals in Karachi to Mirage purchases and a Mirage rebuilt factory in Kamra.

The paper said former bureau chief senator Saifur Rehman had investigated general Jehangir Karmat's T-80 tank deal with Ukraine. The company that acted as a go-between, the general's headquarters and the Ukraine suppliers were investigated to establish the role played by lt col (retd) Alias Moda in the deal.

Several retired officials, who spoke to the paper's investigating team, alleged corruption in the purchase of 3700 Land Rover jeeps. The key supplier of the jeeps to the army was a relative of the then serving lt gen, who was also the main decision-maker in the purchase.

The bureau had also to investigate lt gen Farruk Khan's decision to allow an advance payment to Mitsubshi for a power plant. The Japanese company later cancelled the project, causing a huge loss.

UNI

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