KARACHI: Authorities said on Monday that they were investigating one of the biggest frauds in the National Savings scheme, after an employee of the public sector entity was accused of embezzling Rs114 with the help of his relatives.
“We have recovered almost 90 percent of the money from the culprit and he is now behind bars,” Nadeem Iqbal, Director Human Resources of Central Directorate of National Savings (CDNS), told Arab News.
The case came to light two months ago after the accused – a grade 14 official at the company’s Lahore branch — attempted to withdraw an additional Rs100 million from the accounts. “When we detected some abnormalities in the system we immediately dispatched a team to investigate”, Iqbal said.
He added that nearly 1,200 SC-1 forms of Special Saving Certificates and Regular Income Certificates were found missing by investigators who also detected anomalies in the online transactions during the initial stages of the probe.
“This is the biggest fraud in the organization so far,” he noted, adding that after the initial interrogation “the culprit immediately conceded and agreed to return Rs50 million which convinced the interrogating team that the amount could be much more than that”. “We sent another nine-member team to investigate the matter which showed that the culprit, with the help of his wife and some relatives, had withdrawn around Rs114mn,” Iqbal said.
The accused has been arrested and is being interrogated by the Federal Investigation Agency (FIA), along with his accomplices. “The FIA has also recovered Rs40.5 million. Besides, a special audit of the entire records is underway to investigate any anomalies,” Iqbal said, adding that officials at the same branch have been charged for criminal negligence, connivance or fraud.
Replying to a question on how the company hopes to safeguard peoples’ investments, Iqbal said that, going forward, all payments of Rs200 million or more would be made through government-issued checks. “If the check is in my name, it would also include the National Identity Card Number so that no one could misuse the check,” he said.
Reacting to reports of the fraud, investors said they were disturbed to learn of the developments. “I am planning to cash all my certificates because it’s my life’s savings. I can’t trust government anymore and even banks are not secured,” Samina Aqeel, a widow and an account holder, said.
Mehmood Ali, a businessman, concurred. “There is surely a feeling of insecurity and I am seriously considering to liquidate my certificates,” he said, adding that “the institution in my opinion was safe and secure but now my views are different”.
However, Iqbal advised account holders and investors not to jump the gun just yet.
Urging them to completely trust the institution because “each and every penny of investors will be returned as it is guaranteed by the government”, Iqbal said additional measures have also been put in place, such as automating “222 branches and negotiating with the National Database and Registration Authority NADRA to install finger print equipment at the branches to match the data”.
“Meanwhile we have ordered the reconciliation of accounts and funds across Pakistan and verification of invoices on a daily basis,” he said.
The National Savings scheme, endorsed by the government, is the largest investment and financial institution in Pakistan worth more than Rs3.6 trillion, and recognized by more than 7 million investors. The organization has an extensive network of 376 branches across the country.
Pakistan probes Rs114mn fraud in National Savings scheme
Pakistan probes Rs114mn fraud in National Savings scheme
- Official allegedly transferred amount to his personal account, investigators say
- 90% of money recovered, with a special audit underway to detect any other anomalies
Sindh cabinet approves compensation for Gul Plaza victims after deadly Karachi fire
- Over 70 people were killed in one of Karachi’s worst fires, which took three days to extinguish
- Deadly blazes have become frequent in the city amid weak fire safety, limited response capacity
ISLAMABAD: The Sindh cabinet on Tuesday approved a major relief and rehabilitation package for victims of the Gul Plaza fire, one of Karachi’s deadliest blazes, which killed more than 70 people and took three days to bring under control earlier this month.
The decision comes weeks after the fire ripped through the multi-story commercial building in the city’s Saddar area, trapping workers and traders as flames spread rapidly through the structure, exposing severe gaps in fire safety enforcement and emergency response.
Under the cabinet-approved package, families of those who died will receive Rs10 million ($35,800) each in compensation, while affected shopkeepers will be provided interest-free loans of Rs10 million per unit, with the provincial government bearing the cost of interest.
An additional Rs500,000 ($1,790) per shopkeeper has been approved as immediate subsistence support.
“There can be no compromise on human life,” Chief Minister Syed Murad Ali Shah said during the cabinet meeting, adding that the government’s priority was to support affected families while ensuring accountability.
“Relief, justice and prevention must go hand in hand,” he added.
The cabinet also constituted a high-level subcommittee, headed by the chief minister, to review the findings of an inquiry committee tasked with determining responsibility for the incident and recommending further action.
Fires have become an increasingly frequent occurrence in Karachi, a megacity of more than 20 million people, where fire services remain severely overstretched and under-resourced relative to population density and the scale of commercial activity.
Successive deadly incidents have drawn criticism of the Sindh administration over lax enforcement of building codes, inadequate inspections and limited emergency response capacity.
