Three former Pakistan generals under scanner for corruption

ISLAMABAD: In an unprecedented move, a Pakistani parliamentary panel has directed the defence ministry and the army to submit a report on corruption charges against three retired generals who were serving in a military-run transportation company.

The generals - Lt Gen Khalid Munir Khan, Lt Gen Mohammad Afzal Muzaffar and Maj Gen Khalid Zaheer Akhtar - violated rules and regulations by allegedly investing funds from the National Logistics Cell (NLC), a commercial logistics company operated by the military, in the stock market.

The investments caused losses of about Rs 2 billion to the NLC.

A meeting of the Public Accounts Committee of the National Assembly or lower house of parliament on Saturday asked the Defence Ministry to submit the report on the NLC scam by June 30.

The meeting was chaired by PML-N leader Chaudhry Nisar Ali Khan, who has been pressuring the army and the defence ministry to take action on the scam.

Saeed Zafar, a member of the committee, said it had been waiting for the army to submit its report for the past seven months.

Defence ministry officials said the army had completed its inquiry into the scam and would soon forward a report to the ministry.

"The three retired army generals and a bureaucrat need to be brought to justice...I have also told the army chief that the inquiry has to be in the light of three audit reports already conducted into the NLC's affairs," Khan said.

The NLC is a subsidiary of the Planning Commission but has traditionally been dominated by the army. It is headed by a serving major general and several army officers work as his subordinates.

According to an audit report, the NLC's management obtained illegal and unauthorised loans of Rs 4.3 billion during 2004-08 for investments in the volatile stock market and suffered losses of Rs 1.84 billion.