1. ' MRS. QAISER IQBAL, J.---This judgment will dispose of C.P. No.975 of 2007 arising out of Reference No.18 of 2007.
2. On 16-3-2007 the Chairman NAB filed the following Reference:-- ' Reference No.18 of 2007" The State Versus
(1) Salahuddin Mughal, Son of Haji Deen Muhammad, Former Secretary Sindh, Workers Welfare Board Karachi resident of Bungalow No.42, 8th Commercial Street, Phase-IV, DHA Karachi presently posted Deputy Director Labour, Thatta.
(2) Syed Muhammad Irfan, son of Syed Maqsood Hussain, Former Welfare Officer, Sindh Workers Welfare Board, Karachi.
(3) Madad Ali Shaikh son of Dil Murad, Ex-Manager, UBL Landhi, Industrial Area Branch, Karachi.
(4) Muhammad Shoaib Wasti, son of Syed Aftab Wasti, Clearing Officer, UBL, Landhi Industrial Area Branch, Karachi.
(5) S.M. Wasim, son of Syed Muhammad Saleem, Computer Operator, UBL, Landhi Industrial Area Branch, Karachi.
(6) Ghulam Mustafa Shaikh, son of Haji Umer Shaikh, Cashier, Accounts Branch, EPZA, Karachi, Account Holder A/C No. 101-1180-1 UBL Landhi Industrial Area Branch, Karachi.
(7) Muhammad Anis son of Mehboob Ali, Stenographer, EPZA, Karachi Account Holder A/c No.101- 0211-1 UBL.
(8) Zafar Iqbal, resident of H. No.B-53, New Muzafarabad Colony, Landhi Karachi Account Holder A/c No. 101-163001 and 010-2185-4 UBL.
(9) Mumtaz Ahmed, son of Ali Hassan, Labour Officer, Messrs Globe Textile Mills, (Pvt.) Limited.
2. ' REFERENCE UNDER SECTION 18(G) READ WITH SECTION 24(B) OF THE NATIONAL ACCOUNTABILITY ORDINANCE, 1999.
3. Respectfully Sheweth:--
(1) That a complaint was received by Director General, National Accountability Bureau Sindh Karachi on 26th December, 2001 against the officials of Sindh Worker Welfare Board Karachi
(SWWB) wherein it was alleged that during the year, 2000-2001 the officials of SWWB had misappropriated funds out of the marriage/Jahaiz grant meant for the needy workers. After conducting the inquiry, investigation was authorized on 8-6-2004 by Director General National Accountability Bureau Sindh. Investigating Officer has submitted his report wherein sufficient evidence has come on record which substantiates the allegation of corruption and corrupt practices against the officials of SWWB and others including Bank officials and officials of different Industries.
(2) That during financial year, 2000-2001 Salahuddin Mughal (accused No.1) was posted as Secretary SWWB and Syed Muhammad Irfan (accused No.2) was working as Welfare Officer with/under him. SWWB received a sum of Rs.31,500,000 as grant for "Jahaiz" for workers of Private Industrial Sector at the rate of Rs.20,000 per worker. Accused No.1 in the capacity of Secretary SWWB invited applications through newspaper "Nawa-e-Waqt", dated 16th September, 2000.
4. Accused No.2 was made incharge by accused No.1 to scrutinize the applications of workers for the subject grant as per conditions of admissibility.
(3) That the investigation revealed that in response to the said advertisement/publication, 5741 applications were received from 132 Industrial Enterprises which were required to be scrutinized through a four member committee constituted by the Board. However, the preliminary scrutiny was carried out by accused. No.2 and a note was placed by him to the Secretary (accused No.1) for fixing the date of meeting of Scrutiny Committee. Accordingly, committee held its first meeting on 9th April, 2001 which was attended by all the members and it was decided to get applications verified from the concerned Industrial Enterprises. All the applications were sent for scrutiny to various Industries and confirmation letters or otherwise were received.
(4) That the second meeting of the Committee was held on 7th May, 2001 wherein the Committee observed that a total of 4694 applications were valid against 1575 available grant cheques of Rs.20,000 each. Therefore, it was decided to hold the ballot through Computer. Accordingly, the computers ballot was held on 13th June, 2001, and names of successful candidates were declared.
5. Cheque Distribution Ceremony was held on 30th June, 2001 where 200 cheques were distributed amongst the successful workers in the presence of representative of Factories and Worker Unions.
6. The other cheques were distributed subsequently during the month of July and August, 2001. During investigation, it has been found that out of 1575 applications from various factories 288 employees were not genuine worker, however, cheques were distributed in their names. The amount of 288 bogus/ghost employee comes to Rs.57,60,000 which was misappropriated by all the accused.
7. Investigation further reveals that the Scrutiny Committee did not scrutinize the credentials of applications appropriately but due to their gross negligence, 288 cheques were not delivered to the entitled bona fide workers instead these cheques were deposited in the account Nos. 0102185-1, 101-1630-1, 101-1180-1 and 101-0211-1, 101-1630-1, operated by accused Nos.6 to 8. As per rules and procedures these cheques could not have been deposited in the accounts of accused Nos.6, 7 and
8. However, with the active connivance accused Nos. 3, 4 and 5, these cheques were deposited in the said accounts. A sum of Rs.29,40,000 was drawn by the accused Nos. 6, 7 and 8 from these accounts, on various dates during July to September, 2001.
(5) That it has been confirmed from the factories that 288 persons were not employees of any factory, however cheques were issued in their names out of 288, 11 such fictitious forms were prepared by accused No.9 Labour Officer for Messrs Globe Textile Mills (Pvt.) Limited Landhi Karachi.
8. He also signed false verification letters on behalf of management and signed cheques distribution register. The accused No.9 also received 46 cheques on various dates during June and July, 2001 from the management of Worker Welfare Fund and instead handing over to the concerned workers deposited the same in the account of accused Nos.6, 7 and 8.
(6) That the accused Nos. 1 to 5 in connivance with accused Nos. 6 to 9 misappropriated the sum of Rs.57,60,000 of Workers Welfare Fund. Accused No.2 prior to authorization of investigation submitted application under section 25-A for voluntary Return out of misappropriated amount to the tune of Rs.14,40,000 the application is under consideration after deducting the amount of voluntary return the total outstanding amount would be Rs.43,20,000.
(7) That the evidence collected during investigation establishes that accused in connivance and collaboration with each other fraudulently or dishonestly misappropriated an amount of Rs.57,60,000 from Workers Welfare Fund by processing fake claims and misusing crossed cheques and thus by corrupt, dishonest or illegal means obtained for themselves pecuniary advantage.
9. Further, the accused Nos.1 and 2 misused their authority to gain benefit for themselves and other accused and wilfully failed to exercise their authority to prevent the grant of undue benefit. The accused thereby committed the offence of corruption and corrupt practices as defined in clauses (iii), (iv), (vi) and (vii) of sections 9(a) of National Accountability Ordinance, 1999 and Schedule thereto.
(8) That on the appraisal of material and evidence placed before I am of the opinion that it is just and proper to proceed further as there is sufficient incriminating material to justify the filing of this reference. The matter is referred to the Hon'ble Court within the meaning of section 16(c) National Accountability Ordinance, 1999.
10. ' It is, therefore. Prayed that the accused may be tried and prmished by the Hon'ble Court in accordance with law. List of witnesses, report of investigation and documents as per list are attached herewith.
11. (Sd.)
12. Lieutenant General (R) Chairman, (Shahid Aziz)
13. National Accountability Bureau, Islamabad, Dated 16th March, 2007"
14. ' We have heard the Advocate for the petitioner, A.D.P.G. For NAB and perused the record of the case carefully.
15. ' The petitioner was carrying a business in Muzafarabad Colony, under the name and style of "Mehboob General Store" commonly known in the community, he was connected in the commission of the offence. During the course of business certain cheques were deposited in his account by Accused Nos. 6 to 8 with active connivance of accused Nos.3, 4 and 5, the written statement of the witnesses have been filed along with the comments filed in the petition. The statement of one set of the witnesses disclosed that few employees certificates were fake, whereas another set of witnessed disclosed that the representative of workers federation had verified the workers and then cheques were issued, meaning thereby both the sets of witnesses, are to be examined before the trial Court. They are conscious 'of their fact that deeper appreciation of the evidence is not permissible at the bail stage, on tentative assessment, we are of the view, it is yet to be determined as to whether workers were fake or were verified by respected workers of Union of employees.
16. As regards the case of the applicant is concerned, it would be covered along with the case of Bank employees, the prosecution has relied upon the statement of four witnesses Mubeen-ul-Moin, Farooq Mehmood, Muhammad Akram and Syed Habibul Hassan. P.W. Mubeenul-Moin and Farooq Mehmood had conducted departmental inquiry added that employees were negligent to perform their duties and fixed the responsibility of 5 Bank officials in the inquiry report, which is an opinion of based upon the witnesses unless such material is produced before the trial Court, the same cannot be appreciated and is not binding upon the Court. As regards the case of Zafar Iqbal is concerned, the prosecution alleged that 288 cheques were deposited in his account as per rule these cheques could not be deposited in the applicant's accounts. It is urged that with the active connivance the applicant along with the co-accused deposited some of the cheques in his accounts and substantial amount was drawn on various dates. The applicant Zafar Iqbal having General Store in Landhi had opened an account in UBL, the prosecution alleged that being an account holder in bank the cheques were deposited, which were specifically denied by the petitioner.
17. ' From the evidence produced by the prosecution along with their comments against the petitioner, it is clear that the allegation would not be determined without deeper appreciation of the evidence.
18. From the tentative assessm ent, we are of the view that the allegation by themselves would not constitute bar for grant of bail in the peculiar circumstances of the case without touching the merits of the allegations levelled against the petitioner, we are also conscious of the fact that in similar circumstances co-accused in C.P. Nos. D-568, D-880, D-993, D-994, D-995, D-1432 and D- 1003 of 2007 were admitted on bail in the similar circumstances, since the case of the applicant is on similar footing. The case of the petitioner is at par to the co-accused already admitted on bail, therefore, on the basis of the consistency, to petitioner Zafar Iqbal, is hereby confirmed on same terms and conditions, whereas bail was granted to him on the same terms and conditions as were contained in the interim pre-arrest bail order, dated 9-7-2007.