Pak army punishes 2 former generals for corruption

In a rare move, an army court in Pakistan today punished two former generals for illegally investing Rs 4.3 billion in the stock market and causing a loss of Rs 1.8 billion to National Logistics Cell (NLC).
Military spokesman Maj Gen Asim Saleem Bajwa said Lt Gen (retd) Muhammad Afzal Muzaffar and Maj Gen (retd) Khalid Zahir Akhter were punished for illegally investing Rs 4.3 billion in the stock market and causing a loss of Rs 1.8 billion.
Maj Gen (retd.) Akhter has been "Dismissed from Service", which implies forfeiture of rank, decorations, medals, honours, awards, seizure of pension, recovery of personal gains, cancellation of service benefits and all other allied facilities including medical etc, he said in a statement.

Lt Gen (retd.) Muzaffar has been awarded "Severe Displeasure (Recordable)" which in essence is a disciplinary award due to an offence of lesser degree i.E. Violation of procedures but no personal gains.
Another officer Lt Gen (retd.) Khalid Munir Khan has not been found involved in any financial irregularity or serious misconduct and therefore stands absolved from all charges.
"Army in line with its traditions has always and will continue to maintain highest standards of accountability, justice and fair-play," army said.

The case started in Feb 2009 when Public Accounts Committee observed violations in implementation of Board of Directors' Instructions and rules and regulations with regards to investment made by National Logistic Cell (NLC) that allegedly caused financial losses to the organization.

Consequently, Secretary Planning & Development Division constituted an inquiry committee, which highlighted financial irregularities, lack of transparency and failure to observe rules and regulations caused by reckless decisions of chain of command of NLC.
The Committee referred case of NLC to the Ministry of Defence for necessary disposal and by November 2010, army commenced a Court of Inquiry but the case lingered for years.
Army chief General Raheel Sharif instructed to dispose of the case on fast track and the case was re-investigated by a committee of high ranking officers, which after months of exhaustive probe, established that two retired senior officer and a civilian were responsible for corruption.