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FIA shelves probe into ST refund scam

RECORDER REPORT

MULTAN: The Federal Investigation Agency (FIA) has allegedly shelved inquiry into payment of Rs 3.9 million sales tax refund to bogus companies by the Sales Tax Collectorate, Multan region, and has sent some of the arrested persons to judicial lock-up, sources revealed on Monday.

The FIA after detecting on fraud raided the collectorate along with magistrate Iqbal Tanveer on November 28, 1999 and arrested sales tax collectorate inspectors Muhammad Iqbal and deputy superintendent Amin. Another accused senior auditor Khalid Mehmood escaped.

Official reports indicate that officials concerned released Rs 3.9 million to two bogus export firms as ST rebate.

After a thorough investigation, FIA collected all the record of refund vouchers and shipment from Karachi. An insider says that senior staff of the collectorate involved in the fraud included chief accountant, assistant collector, deputy collector, two junior accountant officers and an auditor.

Sources further revealed that chief accountant prepared all the record while the assistant collector registered the firms United Impex and Pak Exporters. Finally, the deputy collector approved the case to release Rs 3.9 million rebate to these firms.

Two cheques were issued through senior auditor Khalid Mehmood and a private agent Muhammad Sami by hand instead of mail.

According to refund rules, export are exempt from sales tax. The bogus firms purchased new material of textile from the local market and showed them as export consignment and subsequently submitted a rebate claim.

United Impex and Pak Exporters mentioned their offices addresses and telephone numbers, that upon inquiry proved bogus. When contacted, the sales tax collectorate additional collector Fateh Muhammad Sheikh said that collectorate inspector Muhammad Iqbal, deputy superintendent Amin and senior Khalid Mehmood had been suspended. Fateh said that the rest of the officials belonged to Grade 17, 18 and 19 and the Central Board of Revenue was the only authority who could take any action against senior officials. "However an official report has been sent against the officials to CBR" Fateh said. The case is under trial with the FIA, he added. An FIA official informed that the case had been sent to the FIA Lahore zone against the senior officials.