Irregularities of Rs200 million have been spotted by FIA
National Savings, a public sector organization of Rs3.6 trillion, has been detected by a major scam.
According to the reports, insiders have siphoned off around Rs200 million and breached the trust of more than 7 million small-to-medium individual savers.
Officials at Lahore Branch had diverted more than Rs110 million to bank accounts of their own and their family members.
The Director Human Resources of the Central Directorate of National Savings (CDNS), Nadeem Iqbal, said:
“This is perhaps the biggest-ever fraud in the institution.”
He further stated that not more than three cases of fraud had been reported in the organization over the past 15.16 years.
A group of people, including an official of the CDNS, were found involved in the fraud by operating accounts in an organized manner to divert funds.
CDNS Director-General Dr. Arshad said:
“Most of the funds illegally withdrawn by the suspects had been recovered. The case has been handed over to the Federal Investigation Agency (FIA). A special audit of entire record ordered to rule out the possibility of contagious fraud.”
To avoid a repeat in future, remedial measures are in process.
“National Savings is not prone to crime or corruption, but the customers are mostly poor and lower middle class. They can be subjected to fraud for their innocence,”
the official said.
About 1,200 SC-1 forms of Special Saving Certificates and Regular Income Certificates were missing.
Irregularities in computerized work:
During checking, few serious irregularities regarding the computerized working were observed. It was observed that data maintained in the system was different than manual statements.
Serial numbers of some of the Regular Income Certificates available in the system were also observed as the duplicate.
Officials involved in the scam:
Insiders said that unauthorized official of grade-17 had been given the charge of a grade-17 post. They said that there was no proper handover of charge for almost a year and his seniors misused his weak position.
While investigation, a bigger scam was found and another 50million in the process of withdrawal against different schemes were frozen.
They were found to have withdrawn about Rs20m but confirmed to have gotten away with Rs50m by the same evening.
An official of the branch is under arrest. A grade-18 has been transferred and two others of grade-17 have been sidelined.
The Director said that all branches have been advised to reconcile their accounts on daily basis. He added that the issuance of a check to any customer would be based on computerized identity card numbers.
222 branches out of total 376 branches will be automated during the current year to ensure biometric verification of customers.