- Companies named: HBL, Engro, SCB, MCB, DGKC, Maple Leaf.
- The period extends before and during Zaidi’s tenure in the FBR.
- Reimbursement years cited: 2005-07, 2012-14, 2016-17.
KARACHI: The Federal Investigation Agency (FIA) has registered a corruption case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, alleging that unauthorized tax refunds amounting to billions of rupees were issued during his tenure, according to an FIR filed with the FIA Anti-Corruption Circle, Karachi.
Zaidi is a Pakistani Chartered Accountant and former Senior Partner at AF Ferguson & Co (PwC Pakistan). He was appointed chairman of the FBR in May 2019 and left the post in early January 2020.
The first information report (FIR), filed on October 29 by Inspector Muhammad Iqbal on behalf of the state, invokes Section 5(2) of the Prevention of Corruption Act, 1947, read with Section 109 of the Pakistan Penal Code.
Deputy director Nand Lal of the FIA Anti-Corruption Circle was put in charge of the investigation. The event venue is listed as HBL Plaza Branch, II Chundrigar Road, Karachi.
The FIR alleges that Rs 16 billion in refunds were “unauthorizedly paid” to entities that were clients of Zaidi before his appointment as FBR chairman.
The document lists the alleged amounts as follows: Rs10 billion to Habib Bank Limited (HBL); 2 billion rupees to Engro Corporation; 1.5 billion rupees to Standard Chartered Bank (SCB); 1.5 billion rupees to Muslim Commercial Bank (MCB); 0.5 billion rupees to DG Khan Cement; and Rs0.7 billion to Maple Leaf Cement.
The FIR further states that during Zaidi’s tenure (May 10, 2019 to January 6, 2020), an amount of Rs8,964,500,000 dated September 29, 2019 was issued to HBL “in collusion with FBR personnel”.
The amount was credited to the Central Depository Corporation account of HBL Treasury Division by way of Income Tax Bonds/Shares of Rs 100,000 each, totaling 89,645 bonds, with a maturity date of September 29, 2022.
The refunds related to tax years 2005, 2006, 2007, 2012, 2013, 2014, 2016 and 2017, the document added.
