- Companies named: HBL, Engro, SCB, MCB, DGKC, Maple Leaf.
- The period covers before and during Zaidi’s tenure in the FBR.
- Reimbursement years cited: 2005–07, 2012–14, 2016–17.
KARACHI: The Federal Investigation Agency (FIA) has registered a corruption case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, alleging that unauthorized tax refunds worth billions of rupees were issued during his tenure, according to an FIR lodged with the FIA Anti-Corruption Circle, Karachi.
Zaidi is a Pakistani chartered accountant and former senior partner at AF Ferguson & Co (PwC Pakistan). He was appointed FBR chairman in May 2019 and left office in early January 2020.
The first information report (FIR), lodged on October 29 by Inspector Muhammad Iqbal on behalf of the state, invokes Section 5(2) of the Prevention of Corruption Act, 1947, read with Section 109 of the Pakistan Penal Code.
The investigation has been entrusted to deputy director Nand Lal of the FIA Anti-Corruption Circle. The place of occurrence is listed as HBL Plaza Branch, II Chundrigar Road, Karachi.
The FIR alleges that Rs 16 billion in refunds were “unauthorisedly disbursed” to entities that were clients of Zaidi before his appointment as FBR chairman.
The document lists the alleged amounts as follows: Rs 10 billion to Habib Bank Limited (HBL); 2 billion rupees to Engro Corporation; 1,500 crore to Standard Chartered Bank (SCB); 1,500 crore to Muslim Commercial Bank (MCB); 500 crore to DG Khan Cement; and Rs 700 crore to Maple Leaf Cement.
The FIR further states that during Zaidi’s tenure (May 10, 2019 to January 6, 2020), an amount of Rs 8,964,500,000 dated September 29, 2019 was issued in favor of HBL “in connivance with FBR staff”.
The amount was credited to the Central Depository Company account of HBL Treasury Division through income tax bonds/shares of Rs 100,000 each, totaling 89,645 bonds, with maturity date on September 29, 2022.
The returns corresponded to the tax years 2005, 2006, 2007, 2012, 2013, 2014, 2016 and 2017, the document adds.
