Mysterious development: Food minister’s inquiry transferred from Multan NAB to Lahore

ISLAMABAD: In a mysterious development, NAB chairman has transferred inquiry against Khusroo Bakhtyar and his brother from Multan to Lahore office raising questions about its fate as it was Multan NAB, which had unearthed his billions of assets while acting on a complaint.

The NAB spokesman didn’t offer any comment when approached by The News whereas the complainant in this case has not been told reason of this transfer, which has been done notwithstanding the fact it was in the territorial jurisdiction of Multan.

According to informed officials, this transfer has been done without the consent of Multan NAB, which wanted to vigorously pursue the matter how assets of minister-brothers “ballooned to billions of rupees.” In early 2018, Ahsan Abid Advocate filed a complaint against them, which NAB Headquarters referred to Multan office for verification as the case fell under its jurisdiction. After verification of allegations in September 2018, Multan office reported back to NAB HQ. Other than sharing findings in detail, it reported that allegations were credible enough for detailed inquiry and requested permission for the purpose.

After remaining indecisive for more than a year, NAB in January this year ordered formal inquiry into the allegations against Minister for Food Security Makhdoom Khusroo Bakhtyar and his brother, Punjab’s Finance Minister Hashim Jawan Bakht but only after the complainant had forced NAB to do so through moving Lahore High Court.

As per complaint verification report of Multan NAB submitted in December 2018, the ministers’ family did a roaring investment in six years of the last decade. It set up four sugar mills, five power generation companies, four trading companies including one in London, one ethanol manufacturing company and two others. “Their agricultural property increased from 5702 kanals (712 acres) to 7780 kanals (972 acres) meaning thereby an increase of 2078 kanals (260 acres) in short span, along with 6-7 residential houses and plots in different cities,” according to complaint verification report sent by the regional office to NAB Headquarters.

A couple of properties that Khusroo purchased in his name in Lahore DHA were not declared in the nomination papers, according to this report which further reveals that the “family received a foreign remittance of approx Rs979 million during 2011-2018.” Current market value of the assets of the minister’s family (who live in a joint family setting) is more than Rs100 billion, the report of Multan NAB had revealed.

How did this land-owning family jump into the club of top industrialists remains a mystery? No bank loan was taken for building this empire, the investigators concluded who noted in the report that further assets could be traced if an inquiry was ordered and the accused were investigated. What has been found so far is on the basis of corporate record, tax declarations, revenue documents, banking information and travel history.

The minister himself is a frequent foreign traveler. In the last five years alone, Khusroo went abroad for as many as 189 times which means more than thrice a month. What he does there will remain unknown until he is taken into custody for investigation. His number of brothers varies in different record. Nadra data shows the minister has only one brother (who is now a provincial minister) whereas the land record suggests he has two brothers.

The rise of this family has been explained in the following lines in the NAB’s complaint verification report: “From 2006, the family’s assets suddenly showed unnatural increase. An agricultural family from ‘no-where’ became industrialist and started investing amount beyond there known sources of income in corporate sector.” In the business details, sugar mills merited top mention. They are four. In each case, the minister’s mother and brother are shareholders.

One of them set up in 2006 has authorised capital of Rs1 billion. The minister’s mother and brother are its shareholders. Another set up in 2007 has an authorised capital of Rs2 billion; again the minister’s mother and brother (and his wife) are shareholders. Third one was started in 2016; the last one’s founding date is not mentioned. This brother running the sugar mills didn’t figure in Nadra record when investigators checked.

The minister has declared investment of Rs130 million in one sugar mill. He “seems to have a benami share” in other mills run by the family. “The whole family lives in a joint family system which is evident from their single residential addresses,” reads the NAB report, which has also given addresses.

The four trading companies are in the name of the minister’s brother; one of them was set up in London. Five power generation companies are also in the name of the minister’s brother who appears in Nadra record as his brother. Hashim Jawan Bakht owns an ethanol manufacturing company.

As far as the land purchase is concerned, the investigations reveal that a total of 260 acres increase in agriculture land since 2004 in addition to 126 acres purchased for one sugar mill. Out of it, the minister himself got 216 acres “through a mutation of tamleek from his mother and she got that land by way of tamleek from her mother (the minister’s grandmother) and she got it by way of tamleek from her two daughters” who inherited impugned land after death of their father (the minister’s grandfather).

“Most of these alienation of tamleek took place on the same day and as I see an increase in the assets of subject’s (minister) maternal aunt in proceeding years as one of them purchased vehicles worth Rs16 million,” wrote the investigator in the report sent to NAB Headquarters. He further notes, “The whole transaction seems dubious and needs a thorough probe as apparently it seems that a process of ‘layering’ has been adopted to hide the original beneficiary.”

Regarding the undeclared plots of the minister, the investigation report reads, “It is also pertinent to mention here that 269 kanal agricultural land purchased at……..in 1991, 36 kanals in…….2015 and 02 plots measuring 05 marla each purchased at Lahore DHA in November 2017 was not declared by subject person (the minister) in nomination papers submitted for contesting election 2018.” As many as 12 urban properties of the family purchased after 2004 are situated in DHAs of Lahore, Islamabad and Karachi in addition to Gulburg and Lahore Cantt.

Regarding the foreign remittances, the “FBR statements of the family including subject person shows inflow of foreign remittances after 2011 which shows that this family has invested and can have properties abroad,” reads the report. The total amounts received through remittances is Rs797 millions of which Rs9 million landed into the minister’s account. The foreign company owned by the minister’s brother has declared assets of Rs1.06 billion in 2018 FBR statement in addition to bank accounts in City Bank New York and Emirates NBA Dubai.

In its concluding page, the report says that prior to his joining of national politics, the whole family including the minister’s brothers only owned lands “which was the only source of bread & butter” and after induction into the cabinet in 2004, “assets in the name of non-public office holder members of the subject’s family i.e. mother (house wife), brother having agriculture as the only one source of income ballooned to billions of rupees, despite their expenditure on more than 100 foreign trips, contesting elections.”