20000307

NAB to investigate cases

of textile quota bungling

MUZAFFAR QURESHI

KARACHI: The National Accountability Bureau (NAB), is going to investigate cases of bungling and misappropriation of textile quota by the textile firms during

1994 and 1995. Accordingly, it has directed the Ministry of Commerce to submit complete record of quota allocations to the firms and companies which were given quota reserved for underdeveloped regions during this period.

The Textile department of Export Promotion Bureau in a circular to nine textile associations has identified the firms which were allocated quota reserved for backward regions during 1994 and 1995 and has directed the associations to furnish the entire record on top priority basis.

The record quota allocations and utilisation sought by the EPB includes Category Pass Books for the year 1994 and 1995 and the transfer deeds entered into and effected during this period. EPB has also asked the textile associations to provide complete record of quota allocation and its utilisation by the firms during 1994, 1995 and 1996.

The EPB Textile Departmment said that the Bureau had sent the Category Pass Books, transfer deeds and other relevant record as available with it, to the Ministry of Commerce. However the Bureau does not have the relevant record in respect of the said firms.

The circular sent to various textile associations mentioned the names of their member firms suspected of bungling in quota reserved for the underdeveloped regions during 1994 and 1995. As many as 32 firms are suspected of wrongdoing in case of only one textile association.

The EPB has directed textile associations to send the record to the Ministry of Commerce for onward transmission to NAB latest by March 7, 2000 with a copy to the EPB. The associations required to submit quota record include APCEA, PCMA PRGMEA, PBEA, APBUMA, PCFA, PAKSEA, PHMA (North) and PHMA South.

It may be pointed out that the Textile department of EPB had recently detected a fraud by four textile exporters firms of Faisalabad, which had misappropriated quota and shipped thousands of dozens of additional quota to EU by forging signatures of an official of the regional office.

Textile industry sources told Business Recorder that the record sought by the NAB related to the period of People's Party Government when Chaudhri Ahmed Mukhtar was the Minister of Commerce. During that period a number of firms based in Karachi, Lahore, Faisalabad and other cities had obtained quota in reserved for underdeveloped area in the name of fictitious firms.