ISLAMABAD: The Privatisation Commission (PC) has recovered Rs 404.5 million from Trust Investment Bank Limited (TIBL) Chairman Asif Kamal after a plea bargain with the National Accountability Bureau (NAB).
The commission has already recovered Rs 294.37 million in 2013. In 2010, the Privatisation Commission invested Rs500 million in TIBL in two tranches despite TIBL’s low credit ratings. The money had been deposited at an annual rate of return of 12.85% for a period of one year, said the Commission. The investment of Rs500 million was made in violation of sections 14, 16, 18, 19 and 20, along with other enabling provisions and rules of the PC Ordinance 2000 and the Trust Act 1882, it added.
In February 2011, it was noticed that the investment made by TIBL was in breach of the Finance Division’s instructions as well as the provisions of Section 14 of the PC Ordinance.
TIBL was, therefore, requested for an early withdrawal of the amount invested in February 2011. However, TIBL not only refused to return the amount but also expressed its inability to return the amount even upon maturity i.e. in May & June 2011, respectively.
Subsequently, the Supreme Court took a suo motto notice of the matter, and directed FIA and NAB to investigate the matter along with the Finance Division and the Privatisation Commission to ensure recovery of the amount invested with TIBL along with the markup.
