IN THE SUPREME COURT OF PAKISTAN 
    
       (Original Jurisdiction) 
 
 
 
 
 
 
 
Present 
 
 
 
Mr. Justice Iftikhar Muhammad Chaudhry, CJ.  
 
 
 
Mr. Justice Khilji Arif Hussain 
 
 
 
Mr. Justice Tariq Parvez 
 
 
 
 
SUO  MOTO  CASE NO.  15 OF 2009 A/W 
CMAs. 4928-4929/2009 & 1989 & 1998/2010.  
 
   (Corruption in Pakistan Steel Mills Corporation) 
 
AND  
CONST. PETITION NO. 30 OF 2010 
(Wattan Party   vs. Federation of Pakistan) 
AND  
H.R.C NOs.13922-S, 14156-S & 12664-P/2010 
 
   (Applications of Ahmed Hussain and Asif Khawaja) 
 
For the petitioner   
: 
Barrister Zafaullah Khan, Sr. ASC.  
(in Const. P.30/2009) 
 
 
Mr. Arshad Ali Ch. AOR.  
 
On Court Notice  
:  
Mr. Dil Muhammad Alizai, DAG.  
 
For Pak. Steel Mills 
: 
Mr. Fakhruddin G. Ibrahim, Sr. ASC.  
 
 
 
 
 
Mr. M.S. Khattak, AOR.  
 
 
 
 
 
Mr. Waseem Ahmed, CEO.  
 
 
 
 
 
Mr. Qamar Mehmood Sindhu, Dy. GM. 
 
 
 
 
 
Raja Aviz Mehmood,  
Chief Law Officer. 
 
For Ex-Chairman, PSM : 
Mr. Suleman Aslam Butt, ASC.  
(Mr. Moin Aftab). 
 
For Riaz Lalji  
 
: 
Mr. Mansoor-ul-Arfeen, ASC.  
 
 
 
 
 
 
For M/o Industries  
: 
Mr. Gul Muhammad Rind, Secy. 
 
 
 
 
 
Mr. Abdul Ghaffar Somoro, Ex-Secy.  
 
SMC.15/09, etc. 
2 
For M/o Interior  
: 
Mr. Rehman A. Malik (in-person). 
 
 
 
 
 
Mr. Qamar Zaman Ch., Ex-Secy.  
 
 
 
 
 
Mr. Nasir Hayat, Ex-Addl. Secy.   
 
For FIA  
 
 
: 
Mir Zubair Mehmood, Dir. (Sindh) 
 
 
 
 
 
Mr. Moazam Jah, Dir. (Sindh) 
Mr. Azam Khan, Director Law.  
Mr. Khaleeq-uz-Zaman, Dy. Dir.  
Mr. Akhtar Baloch, Dy. Dir.   
Mr. Anwar Qureshi, Asst. Dir.  
 
Mr. Wasim Ahmed, Ex-DG.   
 
For the NAB  
 
: 
Mr. Akbar Tarrar, Addl. PG.  
 
For the applicant   
: 
Dr. Aslam Khaki, ASC (in-person).  
(in CMA 4928/2009)   
 
  
 
 
 
 
 
 
For the applicants   
: 
Mr. Abdul Hafeez Pirzada, Sr. ASC.  
(in CMA 4929/2009)   
 
Mr. Mehmood A. Sheikh, AOR.  
 
For the applicants  
: 
Mr. Khalid Anwar, Sr. ASC.   
 (in CMA 1989/2010)  
 
For the applicants  
: 
Raja Qureshi, Sr. ASC.  
 (in CMA 1998/2010)   
 
Raja Abdul Ghafoor, AOR. 
 
For Pak. Steel Re-Rolling: 
Mr. S.M. Zafar, Sr. ASC.  
Mills Association  
 
For Iron Steel Merchants: 
Mr. Sohail Muzaffar, ASC. 
 
 
 
 
 
Mr. Khalid Javed, ASC.    
 
For respondent No.2 
: 
Mr. Tahir Hussain Lughmani, ASC.  
(in Const. P.30/2010) 
 
Dates of hearing   
: 
7th, 16th & 30th Oct., 2009;  
25th Nov., 2009; 17th & 24th Dec., 2009; 
25th Jan., 2010; 8th Mar., 2010; 
25th Jun., 2010; 21st Jul., 2010;  
4th Nov., 2010; 24th Jan., 2011;  
1st & 23rd Feb., 2011; 9th Mar., 2011;  
13th & 28th Apr., 2011; 13th Mar., 2012 
& 15th March, 2012.     
 
 
 
 
 
* * * * * * * * * *  
SMC.15/09, etc. 
3 
 
 
 
 
JUDGMNET:  
 
 
TARIQ PARVEZ, J. – Pakistan is governed under 
the Constitution of Islamic Republic of Pakistan, 1973 [herein 
after referred to as ‘the Constitution’] and the State is named as 
“Islamic Republic of Pakistan”. The very name of the country has 
direct nexus with the very reason and object of the creation of 
this country, which is reflected in Article 2A of the Constitution, 
commonly known as ‘Objectives Resolution’, which inter alia 
states that “wherein the Muslims shall be enabled to order their 
lives in the individual and collective spheres in accordance with 
the teachings and requirements of Islam as set out in the Holy 
Quran and Sunnah”.  With this background of the very creation 
of the Muslim State, we have to visualize our individual as well 
as collective behavior, which is subject to teaching of Islam and 
Sunnah of Prophet Muhammad (PBUH).  
2. 
 
It is commonly known that higher the position, 
greater the responsibility and the accountability. It is expected 
from every citizen of Pakistan that he shall be loyal to the State 
and the basic duty of every citizen is to be obedient to the 
Constitution and law as ordained under Article 5 of the 
Constitution.    
3. 
   
Trust/breach of trust has been defined under Anglo-
Saxon laws and by Courts interpretation but foremost importance 
SMC.15/09, etc. 
4 
is to be given to teaching of Allah Almighty in the Holy Quran, a 
book which is for all times to come and for all human beings; in 
Surah-Al-Anfal ayt.27 Allah Almighty warns:- 
 
 
 
  
 
Similarly, in Surah-Al-Hajj ayt.38 it is command by Allah 
Almighty: 
 
 
 
In Surah-Al-Baqarah ayt. 188 
 
 
 
 
 
 
4. 
 
Corruption is generally defined as an act of doing 
something with the intent to give some advantage in consistent 
with official duty and to the rights of others; this amounts to 
SMC.15/09, etc. 
5 
misconduct in office, misbehaviour in office,  misdemeanor in 
office or official corruption; it is a menace and curse in a society.  
In Words & Phrases, Permanent Edition, Vol.27 (at page 
432), the word ‘misappropriation’ has been defined as ‘wrong 
appropriation; to turn or put to a wrong purpose’.  
In Words & Phrases, Permanent Edition, Vol.27 (at page 
546), the word ‘mismanagement ’ has been defined as ‘to 
manage badly, improperly, or unskillfully’.  
In Stroud’s Judicial Dictionary (5th Edn.) at page 1605, 
the word ‘misappropriate’ is defined as ‘wrongful conversion of 
or dealing with anything, by the person to who it had been 
interested. 
In Supreme Court on Criminal Law 1950-2002,  
6th Edn. (Vol.2), the definition of corruption has been elaborately 
and meaningfully given by Indian Supreme Court as under:- 
“Corruption in a civilized society is a disease like 
cancer, which if not detected in time is sure to malign 
the 
polity 
of 
country 
leading 
to 
disastrous 
consequences. It is termed as plague which is not only 
contagious but if not controlled spreads like a fire in a 
jungle. Its virus is compared with HIV leading to 
AIDS being incurable. It has also been termed as 
Royal thievery. The socio political system exposed to 
such a dreaded communicable disease is likely to 
crumble under its own weight. Corruption is opposed 
to democracy and social order, being not only anti 
people, but aimed and targeted against them. It affects 
the economy and destroys the cultural heritage. Unless 
nipped in the bud at the earliest. It is likely to cause 
turbulence shaking of the socio-economic-political 
system in an otherwise healthy, wealthy, effective and 
vibrating society.  [(State of Madhya Pradesh vs. Ram Singh) AIR 
2000 SC 870: 2000 Cr. LR (SC) 188]. 
SMC.15/09, etc. 
6 
     
5. 
 
Corruption, spreading throughout the World in 
different countries at different levels and considering it to be a 
menace for the Society, the United Nations could not remain 
oblivious, formation of which is with the object to maintain peace 
amongst the Nations/States in this World, “the United Nations 
Convention against Corruption” was passed by the General 
Assembly Resolution 58/4 of 31.10.2003 and adopted, to which 
Pakistan is member country as signatory.  
In this Convention, corruption was considered as one of the 
serious problems and threats posed to the stability and security of 
societies, undermining the institutions and values of democracy, 
ethical values and justice and jeopardizing sustainable 
development and the rule of law. Illicit acquisition of personal 
wealth was equated with causing damage to the democratic 
institutions, national economies and the rule of law. It was 
thought that effective measures are required to be taken for which 
it was held that prevention and eradication of corruption is the 
responsibility of all States and every State must cooperate with 
another. It was, therefore, agreed upon, inter alia, that each State 
party shall in accordance with fundamental principles of its own 
legal system shall develop and implement or maintain effective, 
coordinated anti-corruption policies and shall promote the 
participation of society by reflecting the principles of the rule of 
SMC.15/09, etc. 
7 
law, proper management of public affairs and public property, its 
integrity, transparency and accountability. It was also held that 
each State shall endeavour to periodically evaluate the entire 
relevant legal instruments and administrative measure with a 
view to determining their adequacy to prevent and fight 
corruption.  
Each State party to the Convention was called upon that 
they shall ensure within their legal system the existence of a body 
or bodies as appropriate or necessary for the prevention of 
corruption and that each State party shall grant to such body or 
bodies ‘necessary independence’ in accordance with the 
fundamental principles of its legal system so to enable the body 
or bodies to carry out its or their functions effectively, freely and 
without being influenced from within or from outside; they were 
to be provided necessary material resources with the specialist 
staff, with continuous/periodical training to such staff. Towards 
achievement of such goal, each State party was to take 
appropriate steps within their legal system for maintaining and 
strengthening system for recruitment, hiring, retention, promotion 
and retirement of civil servants. To protect and ensure the safety 
of the State properties in public sector besides the above 
measures, States parties were called upon to adhere to principles 
of efficiency, transparency and objective criteria, such as merit, 
SMC.15/09, etc. 
8 
equity and aptitude, by adopting the measures for promoting 
adequate remuneration and equitable pay scales, however, taking 
into account the level of economic development of the State 
concerned. (emphasis provided)  
Each State party was to adopt appropriate legislative and 
administrative measures in view of fundamental principles of 
their domestic law. It was the responsibility of the State party to 
promote, inter alia, integrity, honesty and responsibility among 
its public officials and was to adopt the measures for establishing 
the system to facilitate the reporting by the public officials of acts 
of corruption to the appropriate authorities.  
 
In this Convention, it was highlighted that the 
Independence of Judiciary and its crucial role in combating 
corruption, each State party within the fundamental principles of 
its legal system shall take measures for strengthening integrity 
and preventing opportunities for corruption among members of 
Judiciary. It was also called upon the State party that it shall take 
measures as necessary to establish criminal offences when 
committed intentionally like making promise, offering or giving 
to a public official or any other person directly or indirectly of an 
undue advantage in order that the public official or the person 
abuse his or her real or supposed influence with a view to 
SMC.15/09, etc. 
9 
obtaining from an administration or public authority of the State 
party an undue advantage.  
 
Under the Convention, a very serious note was taken of 
extensive attitude at all levels and in different fields of life of 
increasing corruption and measures were suggested for its 
eradication which includes making such practices as criminal 
offence and establishing body or bodies including involving 
judicial system. The measures were also suggested for the 
retrenchment of the properties/assets by freezing, seizure or 
confiscating the same to the State. Since the Convention was 
under the auspices of the United Nations, covering the large 
number of States and because cases of corruption within or 
outside the State were increasing or have increased and the 
mobilization of the individual in the present geographical set up 
has become easy, therefore, in the Convention provisions for its 
eradication were incorporated that an accused person if 
committed a crime, the reporting country can request the other 
State party for return of the offender; care was also taken 
between the States parties to afford to each other the widest 
measures 
of 
mutual 
legal 
assistance 
in 
investigations, 
prosecutions and judicial proceedings. 
6. 
 
It is manifest from the aforementioned Quranic 
Injunctions, Article 2A (Objectives Resolution) of the 
SMC.15/09, etc. 
10 
Constitution, which is actually an offshoot of the Quranic 
Injunctions and also of the United Nations Convention against 
Corruption, that there are not only violation the Quranic  
Injunctions but also deviation of the established conventions 
agreed to by the nations the world over and to which Pakistan is 
also a signatory.  A glaring consequence of this deviation can be 
seen in the case of Pakistan Steel Mills, which is the moot issue 
in these proceedings.  
7. 
 
In the past, the strength of a country or nation was 
dependent upon and determined on the basis of volume of its 
fighting forces/Army, whether regular or volunteers. A State that 
would have a bigger army in order to capture its neighbourhood, 
comprising of small area, would attack and conquer the same in 
order to extend its own territory and administrative jurisdiction. 
By such conquer, not only the conquering State would acquire 
more area but would also become owner of its resources, found 
or available in such area of the conquered State; because of it the 
conquering State would become vast, wide and more strong. The 
stability of the State was dependent upon manpower. Big States 
were those which possess more land and more resources. It was, 
therefore, that  the citizens of such States would be more 
resourceful and more prosperous as against the weaker and 
smaller States. 
SMC.15/09, etc. 
11 
8. 
 
With the advancement of education and socio-
cultural development, the present era of scientific inventions set 
in. The strength becomes of scientific inventions transformed 
from manpower to machine power. Today, a country which is 
advanced in technology is stronger then the one which is not 
more strong in machines or industry.  
 
Machines have entered into every sphere of life of human 
being and have become indispensible; it includes almost every 
size of machinery. In our household items, the modern scientific 
devices have become part of our domestic needs; for example a 
grinder in the kitchen is not a luxury but a need; clothes which 
were washed with hands are being washed by washing machines. 
So where on the one hand smaller machine have become 
necessary for individuals, the heavy machines become need of a 
State/Country/Nation. A glance in the past history of Europe and 
America, hardly a century back and thereafter, clearly amplify 
the change before and after introduction of machines/industries. 
9. 
 
Technical advancement has become basis for the 
determination of per capita income of a country. There are three 
categories of the countries; one, who are developed; second who 
are developing; and third under-developed. Pakistan in the 
present state of its affairs does not fit into the category of 
SMC.15/09, etc. 
12 
developed State; it is developing in certain spheres and is still 
underdeveloped in some sectors.  
10. 
 
It cannot be denied today that strength of a country is 
totally dependent upon its commercial and economical activities. 
The currency rate is the test to evaluate the economical condition. 
Today in our country 1$ is equal to about Rs.91/- whereas 1₤ is 
equal to Rs.141/- or around. This rate of inflation clearly 
demonstrates that we are lagging behind because of our failure in 
building up our productive capacity. 
11. 
 
It also cannot be denied that strong economy is 
guarantee for sustainment of State but for strong economy there 
has to be productive activities in the State itself. The currency 
rate of a country is determined on the basis of State’s resources; 
either it be gold in State treasury or dollars or ponds reserves 
equal to gold. We for example in Pakistan have to produce such 
articles, which are exported abroad and from their export, foreign 
exchange is earned and brought in the country.  
12. 
 
 Pakistan Steel Mills (hereinafter referred to as ‘the 
PSM’)  is one of such public sector installation of which people 
of Pakistan are proud of considering it to be the backbone of 
industries culture for Pakistan. It is not for the first time that this 
Court is under obligation to safe the national asset but even 
earlier too in the year 2005, the PSM was subject matter before 
SMC.15/09, etc. 
13 
this Court in the case of Wattan Party  vs. Federation of 
Pakistan  (PLD 2006 SC 697). 
13. 
 
Pakistan Steel Mills is a private limited company, 
wherein 100% of its shares are owned by the Government of 
Pakistan; it was incorporated in the year 1968 whereas it went 
into production in the years 1981 to 1984; the plant was installed 
with the collaboration and assistance of the Russian Government 
by the Ministry of Industries, Production and Special Initiatives; 
it is installed over the area measuring about 19000 acres of the 
land; the annual designed capacity of the PSM is 1.1 million tons; 
at the time of inception and commencement of production, its 
profitability was not good because of overstaffing, financial 
liabilities, poor working discipline, low capacity utilization, small 
sales, mismanagement and lack of attitude to feel responsibility.  
14. 
 
It was in that background that in the year 1997, the 
Government of Pakistan decided to privatized it and got approval 
from the Council of Common Interest; somehow, the process of 
privatization discontinued and in the month of May, 2000, 
restructuring plan was approved by the Chief Executive of 
Pakistan, which included rightsizing of its employees, repair and 
maintenance of the plant etc. However, in the month of March, 
2005, the Ministry of Privatization and Investment again moved a 
summary to the Board of Privatization Commission that the PSM 
SMC.15/09, etc. 
14 
shall also be included in the program of privatization. After 
approval, bids were asked for; however, such process was 
challenged before the High Court of Sindh, Karachi, which 
matter ultimately landed before this Court and in the judgment 
reported as Wattan Party (supra), this process was checked and 
scrutinized.  
15. 
 
Cognizance of the matter was taken by this Court 
while exercising its Suo Motu jurisdiction under Article 184(3) of 
the Constitution of Islamic Republic of Pakistan, when a write up 
was published in Daily DAWN on 11.09.2009 with a caption 
“Steel Mill Case”, it was authored by Ayesha Siddiqa, who is 
regarded as an independent strategic and political analyst. 
Subsequent thereto, the Hon’ble Chief Justice of Pakistan 
recorded his lordship’s note, which is reproduced herein below 
for the sake of convenience:- 
“Comments may be called from the Chairman, PSM 
for 24.09.2009”  
 
16. 
 
From record of the case, it reveals that on 
07.10.2009, Mr. Qamar Mehmood Sindhu, Deputy General 
Manager (Legal) submitted comments under his signatures on 
behalf of the Chairman, PSM, while pointing out that the FIA 
(Federal Investigation Agency) is already conducting an enquiry 
in respect of risks losses and reduction in sales etc. in the PSM; 
his comments were, however, not supported by any external or 
SMC.15/09, etc. 
15 
internal audit report for the years 2008-09; he was, therefore, 
ordered to file the same on the next date of hearing; on the same 
date of hearing, the then Chairman of the PSM was required to 
file further para-wise comments with reference to write up/article 
dated 11.09.2009. Simultaneously, Mr. Qamar Mehmood Sindhu, 
Deputy General Manger (Legal) was asked to furnish address and 
telephone numbers of Mr. Moin Aftab Sheikh, Former Chairman 
the PSM to the Registrar of this Court for the purpose of issuing 
notice to him; simultaneously, report was also called from the 
DG, FIA in respect of investigation already undertaken by FIA, 
as informed by the Deputy General Manager (Legal); comments 
from Ministry of Industries and Commerce  were also called for 
and the matter was adjourned to 16.10.2009, on which date  
Mr. Abdul Mujeeb Pirzada, learned Sr. ASC appeared on behalf 
of Chairman, PSM and informed that comments on behalf of his 
client have been prepared but are in the process of being filed. 
Mr. Moin Aftab Sheikh, former Chairman PSM did appear in-
person in response to notice but because of late service requested 
for time to file comments and his explanation; however, no one 
put in appearance on behalf of the DG FIA. (emphasis 
provided).  
 
On 30.10.2009, Mr. Suleman Butt, ASC appeared on behalf 
of Mr. Moin Aftab Sheikh, Ex-Chairman PSM and submitted 
SMC.15/09, etc. 
16 
reply on his behalf. Mr. Muhammad Azam, Director (Law), FIA 
also appeared and stated that tentative reports have been prepared 
whereas Mr. Abdul Mujeeb Pirzada, learned Sr. ASC also stated 
that a Committee has been constituted by the Management of the 
PSM, comprising of three members, with the terms of reference 
to find out financial/administrative reasons causing loss to the 
PSM and to fix responsibilities upon the person, if any, for 
causing financial loss, etc. with direction to complete the 
investigation and submit report by 28.10.2009.  
 
On 25.11.2009, when the matter was taken up, Mr. Azam 
Khan, Director (Law), FIA filed an enquiry report which was 
made part of record. Mr. Abdul Mujeeb Pirzada, Sr. ASC for the 
PSM filed another report, which was also placed on record; he 
also placed on record newly awarded dealership during 2008-09 
according to which 300 new dealers were registered by the PSM; 
Mr. Suleman Aslam Butt, ASC for Mr. Moin Aftab Sheikh, Ex-
Chairman PSM also placed some documents to highlight the 
view point of his client and while referring to the said documents, 
demonstrated that he is not involved in the scam of losses to the 
PSM, which according to his estimation comes to Rs.22 billion.  
 
On 17.12.2009, it was noticed by this Court that Ministry 
of Interior, Government of Pakistan under the signatures of  
Mr. A. Rehman Malik, Minister for Interior has constituted a 
SMC.15/09, etc. 
17 
Joint Investigation Team (JIT), which order was reproduced in 
the order sheet of the said date and for the sake of convenience, 
the same is reproduced hereinbelow as well:- 
“In pursuance of the directions of the Honourable 
Supreme Court of Pakistan regarding investigation into the 
affairs of Pakistan Steel Mills and also showing 
dissatisfaction into the investigation so far done by FIA. 
Keeping in view the observations of the Honourable 
Supreme Court, a broad based JIT has been constituted 
with the mandate to investigate the matter thoroughly and 
submit report within four weeks. The JIT is directed to 
keep the Honourable Supreme Court of Pakistan enabling 
the JIT to complete its investigation in a full transparent 
manner and on merits. 
2. 
The JIT will consist of a senior officer of FIA at an 
ADG level, a Deputy Secretary of Ministry of Interior, one 
Deputy Secretary, Ministry of Production & Industries, 
Deputy Attorney General and a Police Officer of DIG rank 
from Sindh Police. A Coordinating Officer may also be 
appointed to coordinate the whole matter.  
3. 
The services of a well reputed International Audit 
firm may be co-opted to assist the JIT to cover technical 
and complicated financial aspects as already discussed and 
agreed with the Minister for Industries.  
4. 
All previous Inquiry Reports on the matter shall be 
re-assessed into transparently and on merit by the JIT.  
5. 
 
ToRs of the JIT are annexed herewith. The 
JiT will complete the work in four weeks time.” 
Along with above order of the Ministry, terms of reference were 
also attached and a team was constituted comprising of five 
members.  
 
However, the above arrangement of constitution of JIT and 
terms of reference were not happily received by this Court 
SMC.15/09, etc. 
18 
considering it to be an attempt to undo the directions contained in 
order dated 25.11.2009 and once an issue is under-examination/ 
consideration before this Court, the same should not have been 
placed before the JIT.  
17. 
 
It so happened that pending proceedings of the matter 
before this Court, the then DG FIA i.e. Mr. Tariq Khosa was 
transferred before completion of his tenure of his such 
assignment; however, his transfer issue was not acted upon by 
exercising restraint and in these circumstances notices were 
issued that let Mr. A. Rehman Malik, Minister for Interior in the 
Court that as to why he should not be proceeded against for 
contempt of Court. 
18. 
 
Consistent efforts were being made by this Court to 
procure sufficient data in the form of material in respect of the 
allegations at least to make out prima facie case of corruption and 
mismanagement; as such the FIA was given time and again 
opportunity to do the needful to submit its report.  
 
It was on 25.01.2010 when Mr. Azam Khan, Director 
(Law) and Mr. Zubair Mehmood, Director FIA Sindh had 
appeared and stated that as per their estimate, in order to proceed 
against the persons who were allegedly involved in causing huge 
losses to the PSM, neither the FIA nor the Special Court Anti-
Corruption is empowered to retrieve the money or effect 
SMC.15/09, etc. 
19 
recoveries except ordering seizer of the properties belonging to 
the delinquents; they had further stated that under the NAB 
Ordinance, the NAB authorities are competent to effect recovery 
of such amount.  
19. 
 
It transpired that at this stage of proceedings, when 
the DG, FIA was to be taken on board in respect of making the 
process of recovery of the embezzled amount, some uncalled for 
changes were noticed in the FIA establishment including the 
constitution of JIT by Mr. A. Rehman Malik, Interior Minister; 
vide order dated 17.12.2009, this Court took serious notice of it 
and accordingly notice was issued to Mr. A. Rehman Malik, 
Interior Minister to explain as to why he should not be proceeded 
against for contempt of Court.  
Subsequent thereto a report was filed by FIA on 
08.03.2010, which was not accepted as satisfactory, however,  it 
revealed from the report that certain named persons against 
whom FIA had registered cases through registering FIRs were 
released on bail by the Courts but no steps whatever were taken 
by the FIA towards seeking there cancellation of bails. 
Another report was filed on 25.06.2010 by the FIA 
showing some steps taken towards recovery of misappropriated 
amount; however it was pointed out to the Court that it is the 
ultimate duty of the DG, FIA to ensure recovery, therefore, the 
Court directed the then DG, FIA to take steps towards fair and 
successful completion of the investigation. (emphasis provided). 
SMC.15/09, etc. 
20 
20. 
 
Noticeable information was given to the Court on 
04.11.2010, by Mr. Fakhurddin G. Ibrahim, learned Sr. ASC 
appearing for the PSM, while stating that M/s Anjum Asim, 
Shahid & Company has been appointed to conduct Forensic 
Audit; a terminology of the Forensic Audit and its efficacy has 
been highlighted in the application including the definitions of 
the terms; it was on 04.11.2010 that Mr. Wasim Ahmed, the then 
DG, FIA was called upon to go through our order sheets and also 
read inquiry report No.95/2009 prepared by Mr. Khaliquz 
Zaman, Deputy Director, FIA/Crime Circle, Karachi but  
Mr. Wasim Ahmed rather contested this report by giving an 
impression that the said report is incorrect, however it was 
admitted by the DG, FIA that the PSM had sustained losses 
of Rs.22 billions. (emphasis provided).  
This Court once again was not satisfied with the 
investigation as reflected in our order sheet dated 24.1.2011, 
because it was noticed that no professional skill was shown by 
the investigating agency towards collection of incriminating 
evidence involving the culprits. 
On 23.02.2011, this Court was informed by Mr. Fakhruddin 
G. Ibrahim, learned Sr. ASC for PSM that the Management of 
PSM had issued notice to 176 persons/companies who had 
received/purchased products (billets) from the PSM without 
SMC.15/09, etc. 
21 
making payment of the actual market price and that they have 
been asked to make the payment of difference in the rates. It was 
directed to the Secretary, Ministry of Industries that its 
department being concerned to the affairs of the PSM has shown 
no interest to ensure effective progress in the investigation rather 
it was their duty to do so. However, it was admitted by the 
Secretary, Ministry of Industries, that uptill February, 2011, the 
PSM had sustained losses of Rs.26+11=37 billions. When 
confronted with the huge amount of losses caused to the 
Government exchequer belonging to the PSM, the Secretary 
requested that some time be given to him so he may file his 
report in black and white. 
 
On 09.03.2011, we were informed by Mr. Fakhruddin G. 
Ibrahim, learned Sr. ASC for the PSM that the task of Forensic 
Audit has commenced and the Auditors have requested for three 
months time to accomplish the job. The Court however, 
responded that they had already consumed sufficient time, 
therefore, the Management of the PSM shall press upon the firm 
to undertake the exercise of Forensic Audit and complete the 
same as early as possible. 
We were also informed by Mr. Fakhruddin G. Ibrahim that 
the notices were issued to the dealers for making the payment of 
differential amount between market value and the price paid by 
SMC.15/09, etc. 
22 
them and in this regard Rs.25 millions have been recovered. In 
the meantime, the Secretary, Ministry of Industries also 
submitted a comprehensive report pinpointing the dealers who 
have been benefitted by paying low prices of the products 
purchased by them from the PSM. We were also informed that 
because of taking effective steps towards the recovery and 
because of strict measures duly taken to cover up the losses of the 
PSM, there was remarkable reduction in the losses of the PSM 
i.e. if for the financial year 2008-2009, losses were Rs.25.5 
millions, in the year 2009-2010, the same have been reduced to 
Rs.11 millions, while for the financial year 2010-2011, upto 31st 
December, 2010 they have been further reduced to Rs.5.7 
millions. 
 
Then it was on 13.04.2011, we were again informed by Mr. 
Fakhruddin G. Ibrakim, learned Sr. ASC that the Forensic Audit 
Report is almost complete and shall be received in the  
1st week of June, 2011. He further informed that some of the 
dealers who were issued notices for depositing differential 
amount of price paid by them for the products, had deposited the 
amount, while few others contested the same. We were also 
informed that though the FIRs have been registered but many 
other dealers who were involved were let out and directions of 
the Court were sought to avoid discrimination. It was also noticed 
SMC.15/09, etc. 
23 
that certain firms like M/s Abbas Steel Industries, if on one hand 
running their Private Limited Company, simultaneously was 
shareholder of the PSM; therefore, the directions were issued that 
let the FIA proceed against all of them without any 
discrimination but strictly in accordance with the law. 
 
On 28.04.2011, it was informed by Mr. Azam Khan, 
Director (Law), FIA by stating that hectic efforts are in hand to 
furnish comprehensive audit report and Interpol Authorities have 
been approached to apprehend the culprits so that the looted 
amount of Rs.26 billions could be recovered. It was also pointed 
out that report from Ministry of Industries has also been given to 
the FIA which is being implemented in letter and spirit. 
  
This Court also directed that the Ministry of Production 
shall explain as to why the comprehensive audit report so 
furnished was not acted upon and as to why no steps were taken 
in light of the said report. 
21.   
Since by then the job of Forensic Audit Report for 
the year 2008-2009 was entrusted to M/s Avais Haider Liaqat 
Nauman (AHLN) and as per their calculation, cumulative losses 
of Rs.26.5 billions identified in the PSM as follows: - 
Business Losses   
 
: 
Rs.4.68 billions. 
 
Losses due to corrupt Practices :  
Rs.9.99 billions. 
 
Losses due to mismanagement/  : 
Rs.11.84 billions. 
 
Negligence   
 
 
 
 
Total   
: 
Rs.26.526 billions.  
 
SMC.15/09, etc. 
24 
22.   
It was admitted by Mr. Gul Muhammad Rind, the 
Secretary, Ministry of Industries who was present in the Court on 
13.03.2012 that they have received the above Forensic Audit 
Report some six months ago but no step so far has been taken by 
the Ministry concerned; he also informed that five enquiries were 
initiated by the FIA but no case is registered against any 
delinquent. We also inquired from the Secretary, Ministry of 
Industries as to why prompt action was not taken on receipt of 
Forensic Audit Report to which he responded that his Ministry is 
contemplating and deliberating to refer the matter to the NAB; 
this Court asked the Secretary to explain the reasons for not 
initiating action promptly. 
23.    
Pursuant to our above directions to the Secretary 
Ministry of Industries, a report was filed by the Ministry 
regarding action taken by it on receipt of Forensic Audit Report. 
Paras 4,5,6 and 7 being relevant are reproduced herein below for 
convenience.  
“4. 
That since investigations were carried out by the FIA 
under the instructions of this Honourable Court dated 
09.03.2011 therefore, it was not advisable for the Ministry to 
refer the subject corruption case to the NAB authorities, 
without orders of this Hon’ble Court. 
5. 
That during the last hearing of the lilted case on 
13.03.2012, the Honourable Court observed that no effective 
measures were taken for recovery of losses and in such a 
pathetic situation about the affairs of Pakistan Steel Mills, the 
Ministry may itself take decision to refer the matter to the 
SMC.15/09, etc. 
25 
NAB authorities regarding all cases which have been earlier 
registered by the FIA and regarding the inquiries, which are 
pending with the FIA. 
6. 
That the matter regarding referring the above said 
cases to NAB authorities was discussed with the Minister for 
Production in light of the Supreme Court proceedings of dated 
13-03-2012, MOP is of the opinion that although the Forensic 
Report has been provided to FIA for necessary action 
however, as advised by the Pakistan Steel’s Board PSM 
management is in process of reviewing of the report in 
consultation with M/s. AHLN to make the same in accordance 
with the TORs of the contract assigned to the Audit firm. 
Moreover, as the investigation is with Director General FIA 
and Director FIA both are out of country therefore, after 
obtaining the present status of the inquiries conducted by 
them alongwith their comments/recommendations, the matter 
will be taken up accordingly. MOP feels that for expeditious 
finalization of inquiries, a senior Audit and Account Expert 
will be nominated to complete the inquiry. 
7. 
The above facts show that no any delay occurs on the 
part of the Ministry of Production however, the Ministry 
requests the Hon’ble Court to instruct FIA for early 
finalization of the inquiry report.” 
 
24. 
  
From perusal of different order-sheets, summary of 
which has been given in detail hereinabove, coupled with the 
final report filed by the Ministry of Industries in March, 2012, it 
has become clear to us that neither the FIA nor the Ministry of 
Industries have taken this matter seriously rather evasively and 
on no good pretext they intend not to refer the matter of Rs.26 
billions mega scam to the NAB Authorities, which losses pertain 
to only one year time i.e. 2008-2009.   
SMC.15/09, etc. 
26 
25. 
 
Likewise, in pursuance of notice issued by this Court, 
Sheikh Aftab Moeen Sheikh, who was Chairman of the PSM for 
the period from 2008-2009 filed his reply; perusal whereof 
indicates that efforts were made by him to justify/explain the 
alleged losses of Rs.26 billions; he in his reply stated that losses 
in the year 2008-2009 were due to severe economic recession in 
the World over because of serious turmoil occasioned in steel 
industry including the PSM and the sales fell from Rs.5.052 
billion in July 2008 to Rs.1.131 billion in October, 2008; it was 
stated that surplus and cheap steel from the World market flooded 
in Pakistani market due to the recession, thus there was low 
demand of the PSM products, which caused piling up of huge 
inventory of finished goods and that economic suffering was 
further multiplied due to the fact that in 3rd quarter of the year 
2008, price of steel products went down very sharply in the 
World steel market which fell by more than 68% from July, 2008 
to November, 2008, rendering the PSM products uncompetitive 
in the domestic market. Stand was taken by Mr. Moin Aftab 
Sheikh that the prevailing domestic market had forced the PSM 
to reduce prices of its products round 35% in November, 2008. 
 
It was further stated by him that during the period in 
question, procurement of basic raw materials from international 
market continued on higher pre-recession prices till end of 
SMC.15/09, etc. 
27 
March, 2009 because the PSM has entered into long term 
contracts. Similarly, the PSM was to pay high freightment prices 
which continued till August, 2009 because of early contracts 
entered in May, 2005. Further explanation was tendered by him 
while stating that adverse affects of recession to the PSM started 
from August, 2008 which resulted into forced lower down of the 
sale prices, whereas contractual prices of raw materials remained 
higher which became reason of huge losses. 
 
The situation was further highlighted by stating that 
decrease in revenue of the PSM was due to global economic 
recession, high prices of raw material (67% of total cost) 
resulting in higher cost of production, less utilization of capacity 
in production and personnel related costs (salaries of staff etc. 
were increased by 39%). It was also reasoned that Pak rupee as 
against US$ was devalued i.e. 1$ which can be bought in Rs.70/- 
went up to Rs.81/- per US$ and there was increase in the prices 
of natural gas and power. 
 
It was also responded by him that the PSM products went 
to the lowest ebb by November, 2008 and that the PSM products 
remained uncompetitive as compared to cheap and substandard 
imported identical steel products because surplus and substandard 
steel from international market flooded into local market of 
Pakistan with cheap price having inferior quality; and that 
SMC.15/09, etc. 
28 
imported bulk of hot rolled materials were available in the market 
less than the listed prices of the PSM. 
26. 
 
On technical side it was pointed out that out of eight 
main production units, Coke Oven & By-Products Plant and Blast 
Furnaces were required to be in continuous production around the 
year as the batteries placed therein must remained hot and once 
the batteries becomes cool down, total refractory bricks were to 
be dismantled and re-built again; which is also one of the reasons 
which occurred because of shutting down of the PSM. 
27. 
 
For reducing the prices of the products of the PSM, it 
was stated that the same is managed and operated through a 
Committee which comprises top management officials of the 
PSM i.e. Chairman, Director Finance, Director Commercial and 
G.M. Marketing. This Committee considers the price trend of the 
steel products in the international market, which internationally 
has fallen by more than 68% from July, 2008 to November, 2008, 
due to international recession which yielded serious negative 
impact on the sale of the PSM products. It was in these 
circumstances to save the PSM from shutting down and to 
improve its liquidity position, various measures were taken by the 
PSM including drastic reduction in price etc. but its products did 
not pickup. 
SMC.15/09, etc. 
29 
28. 
 
While responding to the allegations of corruption, it 
was stated that since the FIA is undertaking the investigation the 
responsibility of individual shall be determined which is 
dependent on the result of the investigation. 
29. 
 
It appears that even the PSM management was trying 
to justify the alleged losses occurred during the financial year 
2008-2009; its background is given in C.M.A. No.4481 of 2009 
filed by Mr. M. M. Usmani, Chairman, PSM on 15.10.2009 
explaining the position by stating that FIA has started 
investigation referred to it by the Government and that on receipt 
of report of investigation, disciplinary action will be initiated 
against the concerned employees. In fact this CMA is para-wise 
reply of the allegation as contained in the Article published in the 
Daily Dawn on 11.09.2009, written by Ms. Ayesha Siddiqa. It 
was admitted that as per the provisional accounts of the PSM for 
the year 2008-2009, the estimated losses incurred were Rs.22.143 
billions and that in fact Auditor General has reported the losses of 
revenue of Rs.9.672 billions only due to fixation of sale price of 
products below the market price. The reason for loss shown in the 
year 2008-2009 was explained to be receipt of lesser sales 
revenue as per budget estimate; one of the reasons was stated to 
be lower capacity utilization @ 65% as against 75% as envisaged 
in the budget estimates; due to lower capacity utilization (65%) 
SMC.15/09, etc. 
30 
for production of raw steel, the production cost increased by 
Rs.1.2 billions; the personnel related costs as increased by 39% 
due to CBA agreement and enhancement of salaries etc.; pilling 
up of huge Inventory of finished goods. 
 
It was also explained that due to international steel market 
slump, situation became unstable which badly affect the sales 
volume and profitability of the PSM.  
  
Another reason was stated to be that a bailout package 
amounting to Rs.10 billions for the PSM was approved by the 
Ministry of Finance but no release of the funds was materialized 
due to different requirement of the National Bank and hence, the 
advantage was not achieved. It was stated that import of 
secondary steel in the garb of primary is always damaging the 
sales of the PSM as the same was available in the market on 
lesser prices. 
While responding to the charges/allegations, it was pointed 
out that during July, 2008 to February, 2009, scrape to the tune of 
0.727 million tons was imported into Pakistan which was 
converted into ingots/billets, which competed with the PSM 
billets because the same was cheaper, therefore, due to wide 
difference between landed cost of the PSM billets and the local 
cost of billets, which resulted into taking out PSM products out of 
competition. Similarly, old ships were available at cheaper rate 
SMC.15/09, etc. 
31 
for breaking demolition from which 0.75 million tons of steel 
plates/scraps were available in market at 30% less then PSM 
billets. 
30. 
 
 Overall impression one gets from the detailed para-
wise comments filed by the then Chairman PSM i.e. Mr. M.M. 
Usmany, it appears that on the factual and technical side it was 
supporting the stance taken by Mr. Moin Aftab Sheikh, who was 
Chairman PSM from 26.05.2008 till 18.08.2009. In fact both are 
toeing the line of each other, rather supporting each other.      
31. 
 
With reference to subject scam in the PSM, the FIA 
crime Circle Karachi also conducted inquiry in respect of 
different issues and submitted detailed report on 21.11.2009 
before this Court qua the investigation and registration of cases 
by the FIA. 
 
In Inquiry regarding award of canteen contract of the PSM, 
the FIA detected that the alleged staff of the PSM in connivance 
with the union/CBA and canteen contractor deviated from the 
normal procedure and approved three contracts, mechanically 
with mala fide intentions and ulterior motives by enhancing 
number of employees as well as rates exorbitantly, which resulted 
in causing huge loss to the Government exchequer; therefore, the 
Inquiry Officer recommended that three separate cases be 
registered against the three different firms and the alleged 
SMC.15/09, etc. 
32 
officers of the PSM, who scrapped the first tenders fixed for 
opening/bidding, reapproved three contracts, mechanically 
without applying their minds with ulterior motives and in 
connivance of each other. 
 
On the subject of scam of reduction of prices of finished 
good of the PSM and its allocation to favourits, the FIA team 
found that the prices of the PSM products were reduced in 
comparison to international market but when international market 
was at higher side the prices were not increased and in this way 
heavy financial loss was suffered by the PSM because of illegal 
and irrational decisions of Mr. Moin Aftab Sheikh, the then 
Chairman, PSM and others to give wrongful benefits to  
M/s Abbas Steel Group. It has been further observed that as per 
sales policy the management of the PSM was bound to give 
priority 
to 
consumers 
over 
traders/dealers 
to 
avoid 
commission/rebate but Mr. Moin Aftab Sheikh, the then 
Chairman and others favoured some traders especially M/s Abbas 
Steel Group and gave them maximum allocations, which also 
caused heavy losses to the PSM. It has been further observed that 
due to difference of prices of billet of the PSM with that of 
international 
market, 
the 
PSM 
suffered 
net 
loss 
of 
Rs.3,655,105,437/- in sale of billets and in this connection 
maximum benefit in selling of billets was availed by one group 
SMC.15/09, etc. 
33 
i.e. M/s Abbas Steel Group which earned premium amounting to 
millions of rupees wrongfully.  
It is also noticed by the Inquiry Officer that M/s Abbas 
Steel Group holds duel dealership i.e. trader dealership & 
consumer dealership which is in violation of established selling 
rules and regulations of the PSM.  
It is further discovered by the FIA that Mr. Moin Aftab 
Sheikh before assuming the Charge of Chairman, PSM was paid 
employee of M/s Abbas Steel Group and used to visit the PSM as 
Director-M/s Abbas Steel Private Ltd. Since January, 2009 to 
August, 2009, more than two times, the Price Fixation Committee 
met and decided to increase the prices as high premium was 
prevailing in market but neither the prices were increased nor the 
minutes were prepared on the direction of Mr. Moin Aftab 
Sheikh, which resulted in heavy financial losses to the PSM. 
 
Regarding procurement of 40,000 MT of metallurgical 
Coke through MV AFOVOS, the Inquiry Officer discovered that 
Mr. Moin Aftab Sheikh, the then Chairman PSM and  
Mr. Sameen Asghar, Director Commercial of the PSM with 
common objective and criminal intention in collusion with one 
Capt. Rashid Abro manipulated a surprise shipment of 40,000 
MT of Met Coke without its formal approval or opening of LC 
and thus foisted it upon the management compelling it to accept 
SMC.15/09, etc. 
34 
it despite the fact that international market registered a down 
slide in the prices of the material and freightment, allowed the 
payment on the already contractual price.  
 
In respect of procurement of Coal at highly inflated price, it 
is exposed by the Inquiry Officer that during the period from 
May, 2008 to August, 2009, Mr. Moin Aftab Sheikh, Mr. Sameen 
Asghar in collusion with Capt. Rashid Abro deliberately and 
willfully imported Coal from Australia at highly exorbitant prices 
against the prevailing low prices in the market due to 
international recession and for personal wrongful gain they 
avoided to make any effort to bring down the prices of Coal and 
freightment, which resulted in huge losses to the PSM. 
 
Qua procurement of 50,000 MT of Coal without tender 
through ship MV ANNOULA, it is observed by the Inquiry 
Officer that Mr. Moin Aftab Sheikh and Mr. Sameen Asgher with 
common objective and with criminal intent fraudulantly 
manipulated the import of 50,000 MT of coal on extremely 
exorbitant price and on payment of exorbitant freight charges 
without any justification or plausible explanation, thereby 
causing colossal loss to the PSM.  
It is further observed by the Inquiry Officer that the above 
said officials abused their official position in attaining their 
SMC.15/09, etc. 
35 
nefarious task by influencing their subordinate officers by 
compelling them to comply with their illegal orders under duress. 
32. 
 
In pursuance of above investigation the FIA Sindh, 
Karachi registered ten cases against the management of the PSM 
and private persons/beneficiaries for causing loss of Rs.26 
billions to the PSM. Out of these ten cases, the first three cases 
pertain to malicious import of raw material (coal and coke), 
involving loss of Rs.4.5 billions approximately in which the 
foreign companies are involved; six cases are in respect of 
corruption in sale of billets and other finished products to various 
dealers/consumers on the prices lower than the prevailing market 
rates causing loss of Rs.4 billions approximately; one case is 
about malicious award of canteen contract to favorites. 
 
Case FIR No.36 of 2009 relates to loss of Rs.49 Crore to 
the PSM, accusing Mr. Moin Aftab Shaikh being Ex-Chairman, 
Mr. Sameen Asghar, Ex-Director Commercial and Capt. Rashid 
Abro a representative of M/s Noble Resources Singapore, 
alleging that they fraudulently manipulated a spot purchase of 
50,000 MT of coal from Port Gladstone, Australia on highly 
inflated price and on extremely higher freight rates despite 
declining market rate. In this case interim charge-sheet is 
submitted in the Court followed by supplementary charge-sheet 
and the properties of the accused persons have also been seized 
SMC.15/09, etc. 
36 
during investigation by the FIA; trial has commenced and is 
likely to be concluded within two months. 
 
Case FIR No.37 of 2009, registered against the above 
named accused, relates to fraudulently manipulation by the 
accused named above in acceptance of 40,000 MT of 
Metallurgical Coke, arrived from China through MV Alpha 
Afovos, without opening of LC or obtaining necessary 
permission by the PSM on highly inflated price and on extremely 
higher freight rates resulting in loss of Rs.1 billions to the PSM. 
In this case as well charge-sheet has been submitted and trial has 
commenced.  
 
In case FIR No.38 of 2009, again the above named persons 
have been accused for fraudulently manipulating the ten 
shipments of coal arrived from Ports Gladstone and New Castle 
of Australia and Robert Bank Canada respectively, on highly 
inflated price and extremely higher freight rates, causing loss of 
billions of rupees to the PSM. In this case charge sheet has been 
submitted and trial is under progress. 
 
Case FIR No.1 of 2010 is in respect of award of Canteen 
contract wherein it is alleged that Mr. Moin Aftab Sheikh, Ex-
Chairman, PSM in connivance with other accused persons 
fraudulently scrapped the already floated tender estimating 
Rs.4,62,49,827/- with an increase of 30% and award of contract 
SMC.15/09, etc. 
37 
by manipulation at exorbitant cost of Rs.12,72,91,007/-, causing 
colossal loss to the PSM to the tune of Rs.81,041,180/- to the 
PSM. In this case besides Mr. Moin Aftab Sheikh, Ex-Chairman, 
ten other persons are accused; namely Brig. (R) Abdul Qayyum, 
PEO (A&P) PSM; Muhammad Atique Khan, DGM Incharge (IR) 
PSM; Imtiaz ul Haq, DGM, PSM; Muhammad Farooq, Manager 
IR Department, PSM; Muhammad Aslam, Canteen Contractor of 
M/s Feed Well; Ali Haider, Canteen Contractor of M/s Cosmos 
Enterprises; Asghar, DM (ECD) PSM; Najmuddin Suho, 
Chairman Food Committee, PBU/CBA, PSM; Syed Zahid Ali 
Hashmi, Canteen Contractor of M/s Casa Caterers and Wazir Ali. 
In this case as well charge has been framed against all the 
accused persons and the trial has commenced. However, some of 
the accused are in judicial custody, whereas some are on interim 
pre-arrest bail. 
 
Case FIR No.39 of 2009 is regarding loss of Rs.3.65 
billions, occurred due to corruption in sale of billets of the PSM 
to 220 consumers/dealers due to non-increase of price according 
to international market. In this case four companies of M/s Abbas 
Steel Group are also one of the traders/consumers dealers, who 
lifted 49,000 MT billets in 2008-09 which comes to 19% of the 
total sale of billets on the prices fixed by the PSM; as per audit 
report the sale price of the billets was much lower from the 
SMC.15/09, etc. 
38 
market-value. Charge sheet in this case is submitted in the Court 
against the Management of the PSM and concerned Directors of 
four companies of M/s Abbas Steel Group besides seizure of 
industrial land measuring 224 acres belonging to M/s Abbas Steel 
Karachi and residential houses of two of the Directors of the said 
group. 
 
FIR No.9 of 2010 has been registered for extending illegal 
benefit of 90 days Free Credit Scheme without mark up to  
M/s Amrelli Steel Ltd. Karachi by extending the scheme mala 
fidely; in this way M/s Amrelli Steel Ltd. Karachi lifted 10,000 
MT of cast billet amounting to Rs.339 million resulting in 
causing loss to the PSM. The accused persons involved in this 
case are Sameen Asgher, Ex-Director Commercial, PSM; Abbas 
Akbar Ali, CEO of M/s Amrelli Steel Ltd.; Tariq Irshad, 
Proprietor of M/s Export International; Mehmood, Proprietor of 
M/s Dunhill Corporation and Ch. M. Shafiq, Proprietor of M/s 
Choudhry Steel Re-Rolling Mills, Lahore. In this case as well 
Charge Sheet has been submitted and trial is in progress. 
 
Case FIR No.13 of 2009 is registered regarding violation of 
the PSM Sales Rules against Muhammad Sohail Proprietor of 
M/s Remya Traders, Karachi and Muhammad Javed Ghani, 
Proprietor of M/s Javed Trading Corporation, Quetta on the 
allegation that they both used to obtain the PSM products in the 
SMC.15/09, etc. 
39 
name of M/s Javed Trading Corporation, Quetta being a 
consumer dealer but the material was never transported to factory 
premises yet sold in local market on premium/own. It is alleged 
against both these accused persons that they opened the bogus 
accounts in M/s Habib Metropolitan Bank, Karachi for running 
their illegal business and used to transfer the funds for purchase 
of the PSM products to sell them in local market which resulted 
in causing loss to the PSM. In this case charge sheet against the 
accused persons has been submitted; however, reportedly they 
both are on bail. 
 
Case FIR No.15 of 2009 is registered on the same subject 
as noted in above para against accused persons namely Ghafoor 
Pathan, Deputy Manager/Incharge Customer Service Marketing, 
PSM; Mohammad Sabir owner of M/s Gujrat Steel Private Ltd. 
and Muhammad Imran representative of the said firm. It is 
alleged that they in collusion with each other, knowingly and 
fraudulently lifted the flat products on the name of their four 
companies i.e. M/s Gujrat Steel Ltd., Karachi, M/s Bombay Wala 
Steel, Karachi, M/s AWB Corporation, Karachi and M/s Alfalah 
Steel Corporation, Karachi; against Mr. Abdul Ghafoor Pathan it 
is alleged that he being Deputy Manger, PSM/In-charge, 
Customer Services Marketing Department, PSM from July 2009 
to December 2009 misused his official authority and willfully 
SMC.15/09, etc. 
40 
allowed lifting of the aforesaid products and granted illegal 
benefit in allocation to the above mentioned accused persons and 
violated the rules and regulations of the PSM, and willfully 
ignored/skipped the directions of the PSM i.e. “no customer shall 
hold consumer and trader dealership (s) at the same time”. In 
this case interim charge sheet was submitted in the Court, which 
is treated as final and the case is under trial stage. 
 
Case FIR No.17 of 2009 is against 13 persons including the 
traders and officials of the PSM for causing wrongful loss to the 
Government exchequer and for wrongful gain to the tune of 
million of rupees regarding sale/purchase of various finished 
products i.e. Billets and HR. The names of the accused are Moin 
Aftab Sheikh, Ex-Chairman, PSM; Sameen Asgher, Ex-Director 
Commercial, PSM; Rasool Bux Phulpoto, MD, PSM; Zulfiqar 
Ali of M/s Aramis International Trading; Abrar Ali of M/s 
Iftikhar and Co.; Shahid Hussain of M/s Hussain Enterprises; 
Qutab Khan of M/s Mehran Traders; Muhammad Farooq Ali of 
M/s Zaman Traders; Ahmed Hussain Jivani of M/s Ahmed 
Hussain Jeevani; Waqar Ali of M/s Karrfour Enterprises; 
Muhammad Adil Usman of M/s Adeel Traders; Faisal Hafeez of 
M/s Mughal Traders and Muhammad Rafique of M/s Al Rehman 
Steel Traders. It is alleged that the PSM officials named above in 
collusion with the traders mentioned above fraudulently and 
SMC.15/09, etc. 
41 
dishonestly with ulterior motive sold the Billets and HR to these 
consumers dealers on reduced prices as compared to that of 
international market. It is to be noted that reportedly some of the 
accused in this case are absconding; some are on bail whereas the 
Ex-Chairman, PSM is in the judicial custody. 
 
Case FIR No.18 of 2009 is registered against twenty seven 
accused persons on the allegation that  the consumer/dealers 
accused in this case in collusion with top management of the 
PSM including Moin Aftab Sheikh, Ex-Chairman, PSM and 
others fraudulently and dishonestly with ulterior motives caused 
wrongful loss to the PSM and wrongful gain to the companies 
accused in the FIR regarding sale/purchase of various finished 
products including long and flat products of the PSM on reduced 
prices as compared to that of international prices. The accused in 
this FIR are Moin Aftab Sheikh, Ex-Chairman, PSM; Sameen 
Asgher, Ex-Director Commercial, PSM; Rasool Bux Phulpoto, 
MD, PSM; Dewan Abu Obaida Farooqi of M/s Dewaan Steel 
Mills; Dewan Muhammad Rehan Farooqi of M/s Dewaan Steel 
Mills; Zubair Qayyum But of M/s BBJ Pipe Industries Pvt. Ltd., 
Lahore; Muhammad Hashim of M/s Bashir Pipe Industries Ltd., 
Lahore; Amir Iqbal of M/s AN Industries Pvt. Ltd., Lahore; 
Farooq Ahmed of M/s Jamal Pipe Industries Pvt. Ltd., Lahore; 
Ch. Jamal Abdul Nasir of M/s Win Pipe Industries, Islamabad; 
SMC.15/09, etc. 
42 
Iftikhar Ali of M/s Hattar Solid Steel Corporation Pvt., Karachi; 
Faiz Muhammad Brohi of M/s Indus Steel Pipe Ltd., Karachi; 
Munir Ahmed Dogar of M/s Indus Steel Pipe Ltd., Karachi; Brig 
(R) Hashmat Ali Shah Bukhari of M/s Indus Steel Pipe Ltd., 
Karachi; Shahnawaz Ishtiaq of M/s Nawab Brothers Steel Mill 
Pvt. Ltd., Karachi; Ch. Waheed ud Din of M/s Victory Pipe 
Industries Pvt. Ltd., Islamabad; Mehmood Ali Mehkri of M/s 
Metropolitan Steel Corporation, Karachi; Syed Asgher Jamal 
Rizvi of M/s Metropolitan Steel Corporation, Karachi; Badruddin 
Akbar Ali of M/s Amrelli Steel Ltd., Karachi; Muhammad Zafar 
Ali Khan of M/s Sarhad Re-Rolling Mills Pvt. Ltd., Karachi; 
Sarfraz Hussain of M/s AS Steel Re-Rolling Mills, Karachi; 
Aamir Malik of M/s Madina Steel Industries Re-Rolling Mills, 
Lahore; Asif Bhagani of M/s Faizan Steel, Karachi; Asif Sohail 
of M/s AF Steel Re-Rolling Mills, Lahore; Mian Muhammad 
Yasin Suleman of M/s Hajvery Traders, Lahore; Zubair Shoukat 
of M/s Ramzan Tube Mill, Lahore and Jamil Akhtar of M/s 
Millat Pipe Industries, Gujranwala. In this case as well some of 
the accused are absconder; some are on pre-arrest bail, whereas 
Ex-Chairman, PSM is in the judicial custody and the trial is under 
progress. 
33. 
 
The above gist of the FIRs is given just to have a 
glance at the progress so made by the FIA in the matter.   
SMC.15/09, etc. 
43 
34. 
 
Due to heavy losses suffered by the PSM in the year 
2008-09, the Management of the PSM appointed M/s AHLN 
(Avais Haider Liaquat Nauman) Chartered Accountants to 
conduct Forensic Audit of the PSM to determine the cause or 
causes of such huge loses. They were also given the mandate to 
establish responsibility for the loss incurred and provide evidence 
to the management of the PSM of any wrong doing.  
The firm M/s AHLN carved out the following task while 
conducting the Forensic Audit of the PSM:- 
i) 
To find out and tabulate the break-up of losses 
and the reasons behind them. 
ii) 
To investigate and segregate the losses incurred 
due 
to 
negligence, 
mismanagement 
and 
corruption. 
iii) 
To find out the people and agencies responsible 
for the losses and report their name along with 
complete details of loss caused to PSM as a 
result of their involvement required. 
iv) 
To provide the management with the evidence 
required for taking any subsequent disciplinary 
or criminal proceedings. 
v) 
Recovery of losses from whosoever is/are 
responsible for the losses by tracing their assets 
in the Court of Law. 
vi) 
To suggest corrective measures to facilitate 
transparency and avoidance of any such losses 
in future. 
 
35. 
 
A careful perusal of the Forensic Audit Report on the 
PSM reveals that the Auditors took into account the sales, 
SMC.15/09, etc. 
44 
procurement of bulk raw material, purchases, production, etc. 
while compiling their report.  
While examining Sales of the PSM it was opined by the 
Auditors that prices of the PSM products had not been increased 
during the year 2008-2009 specifically from November, 2008 
onward despite increase of the local/ international prices; the then 
Chairman of the PSM, who was Convener of the Price Fixation 
Committee did not take steps as required by Terms of Reference 
(TOR); the then Director Commercial (Mr. Samin Asghar) also 
did not act as required by the TOR. 
 
Qua allocation of products, the Auditors observed that the 
PSM suffered huge losses due to manipulating the process of 
allocation of its products to some specific customers; these 
deviations in the process of allocation of products have been 
noted specifically from November, 2008 to April, 2009 when the 
management of the PSM decreased the prices of its products by 
30-35%; it was opined that Administrative Head of Marketing 
Department i.e. the Chairman PSM acted in collusion with 
specific customer and had deliberately manipulated the process of 
allocation of material to get the maximum benefit of reduced 
prices. 
The then Director Commercial/Acting Chairman PSM 
approved the extension of free credit scheme on 02.12.2008 
SMC.15/09, etc. 
45 
without prior approval of the Price Fixation Committee and in 
this way M/s Amreli Steel and three other customers enjoyed 
facilities of Free Credit Scheme (FCS), which resulted in loss of 
Rs.13,622,074/- to the PSM. 
The report further reveals that priority was given to 
traders/dealers as compared to consumers by allocating the 
material to specific customers during the said period; non-
implementation of the SOPs of Marketing Department resulted in 
losses caused to the PSM. The Board of Directors issued 
instructions for constitution of High Power Committee to 
negotiate with the suppliers, shipping companies but the then 
Chairman never constituted such committee in total disregard of 
the instructions of the Board of Directors. The Iron Ore Lump 
was approved to be procured at a very high price by the 
Chairman against the best interest of the PSM. 
While discussing the purchase by the management of the 
PSM, the Auditors opined that the Incharge Purchase Department 
failed to get approvals from all the concerned departments and 
from the Chairman and to place the purchase order within the 
validity period of the offer. According to the Audit Report, the 
purchase proposals so forwarded by the purchase department to 
the Chairman for approval were rejected making the freight cost 
as the base of rejection, however, the tender was awarded to the 
SMC.15/09, etc. 
46 
supplier quoting the higher freight rate then quoted previous year. 
It was observed by the Auditors that the then Chairman acted 
negligently and in complete disregard to the financial 
implications of decision to continue the production of Cast 
Billets, even when the losses were being incurred on such 
production; he even did not take any step to reduce production 
level to the minimum.     
 
During the course of audit, it was observed by the Auditors 
that some transactions qua sales were carried out in total 
contravention of normal business practice; these anomalies were 
observed in all of the sales made during the period from 
November, 2008 to April, 2009 in all of the PSM products i.e. 
Billets, Hot Rolled Product, Cold Rolled Product and Galvanized 
Product; it was observed that one or more characteristics in the 
contracts of some customers are common like signature of buyer 
on the contracts of different customers is of the same person; 
likewise contracts of similar quantities and similar products are 
entered into by different dealers with same handwritings; 
similarly, business addresses were same or very close to each 
other; it was observed by the Auditors that these dealerships 
belong to one person or closely related group. 
36. 
 
In order to examine the above mentioned Audit 
Report, the Board of Directors of PSM in their meeting held on 
SMC.15/09, etc. 
47 
30.07.2011, constituted a seven members designated Committee 
which examined and reviewed the report and gave its findings as 
under:- 
a. 
The Committee opined that M/s AHLN while elaborating their 
assignment methodology in their technical proposals, has 
mentioned that the assigned is being taken up jointly in 
association with their UK counterpart i.e. RSM Tenon; but the 
Committee in this regard has not observed any reflection of the 
contribution made by RSM Tenon; the Committee, therefore, 
insisted that the contribution of RSM Tenon should be clearly 
reflected in the report and the endorsement of the same as 
required earlier should also be made part of the Report.  
 
b. 
The Committee concluded that the work as per the given TOR is 
incomplete with respect to clause 2(e) which, if acknowledged, 
will reduce the scope of assignment of M/s AHLN and the basic 
objective of this exercise i.e. recovery of the lost money will not 
be achieved.   
 
c. 
The Committee also opined that the business loss, as indicated in 
the preliminary report has not been catered for, as it comprises 
of those elements of expenditures and provisions which are 
independent of any operational level of activity; the  
Committee was of the view that PSM must have suffered a 
substantial loss on account of difficult market condition, global 
recession and devaluation of Pak Rupee against US$ which was 
factors were not accounted for by M/s AHLN in the breakup of 
26.5 billion losses.  
 
d. 
The Committee observed that the double counting adjustments 
as identified in special notes to observations 7.4.1 to 7.4.3 are 
also not available in the Report. 
 
e. 
The Committee observed that clause 2(c) of TOR which speaks 
that the Forensic Consultants are required to pinpoint those who 
were responsible for the losses from within the PSM and any 
beneficiary outside the PSM is not complied with. 
 
f. 
The Committee further observed that the conclusions drawn by 
M/s AHLN for many of their observations were made on some 
serious matters without the conciliation the management’s point 
of view on logical/technical ground. 
 
g. 
While the quoting the definition of “Corruption” in legal terms 
the Committee observed losses attributed towards the corruption 
have not been passed to the individual dealers, suppliers or other 
beneficiaries to the extent of benefit drawn by such 
individuals/groups/parties; therefore, no one can be charged for 
the same and such vague allegations without substantial 
evidences/specific charges, may result into a total confusion in 
transferring the responsibility on individuals/groups/parties for 
recoveries. 
 
SMC.15/09, etc. 
48 
37. 
 
In view of above findings, the Committee concluded 
that the M/s AHLN has not completed the assignment in true 
spirit of Forensic Accountancy as generally accepted.  
38. 
 
We do realize that this case of mega scam was 
entrusted to the FIA by this Court for investigation and we have 
been receiving reports from the FIA from time to time but we 
have been invariably showing our displeasure and express our 
dissatisfaction both as to the manner and pace of the investigation 
conducted by the FIA; although the FIA has also filed Audit 
Reports but ultimately the auditing of the PSM was entrusted to 
M/s AHLN (Avais Haider Liaquat Nauman) Chartered 
Accountants, who though did not conclude their work within time 
but in reasonable time had conducted Forensic Audit of the PSM 
for the year 2008-2009.  
39. 
 
It 
is 
generally 
not 
advisable 
that 
pending 
investigation, the charge of the same be taken over and entrusted 
to another agency but in the given circumstances and for the 
reasons, which shall be detailed hereinafter, we are constrained to 
hold that the no meaningful results are likely to be achieved 
towards the investigation so far conducted by the FIA, in 
particular qua the recovery of misappropriated money, which is 
not within the power and jurisdiction of the FIA authorities but 
under the law, the NAB Authorities can recover the said 
SMC.15/09, etc. 
49 
misappropriated money besides criminally prosecuting the 
persons either mentioned in the reports of the FIA so far filed or 
to whom the NAB Authorities subsequently will find so involved 
in the scam in the PSM for the year 2008-2009. 
40.   
The reasons for transferring the investigation from 
FIA to the NAB Authorities are formulated as under:- 
i) 
The FIA had been filing either preliminary or 
incomplete reports and had never filed any 
satisfactory final report;  
  
ii) 
We do not find any serious effort on the part 
of the FIA towards prosecution of the cases 
registered through the FIRs mentioned above;  
 
iii) 
Despite observations made by this Court and 
although from the FIA, it appears that they 
were not happy because of bail-before-arrest 
or bail-after-arrest, granted to nominated 
accused but no appeal for cancellation of bail 
has been filed against the accused involved in 
the whole scam of misappropriation of money;   
 
iv) 
There are number of accused who have been 
shown absconder but no purposeful steps are 
taken by the FIA to procure their arrest except 
obtaining only their warrants of arrest;  
 
v) 
It has been admitted at the bar by the Director 
Legal, FIA and other officials that so far as 
recovery 
of 
misappropriated 
amount 
is 
concerned, it cannot be successfully effected 
by 
the 
FIA 
authorities, 
whereas 
they 
themselves in their reports have not only 
pinpointed the names of those persons, who 
were responsible for the said misappropriation 
of money but in some matter, they have 
specified the mount misappropriated by the 
individuals; 
 
vi) 
During the course of investigation, the DG 
SMC.15/09, etc. 
50 
FIA including Mr. Tariq Khosa, from whom 
there were good expectations, was transferred 
and even later on by some of the DGs, we 
have noticed no-cooperation towards the 
investigation of the case or at times evasive 
replies; 
  
vii) 
At the first stage of proceedings, the then DG 
Mr. Waseem Ahmed openly in Court 
disagreed with the reports of his own 
subordinates, who were conducting the 
investigations;  
 
viii) 
The entire investigation appears to be casual 
and not final result oriented; 
 
ix) 
We do not find any conclusive report prepared 
by the FIA. 
 
41. 
 
Above are the few reasons, which persuade us to 
conclude that the investigation of the case be transferred and 
entrusted to the NAB Authorities.  
42. 
 
We may add here that the incumbent Chairman NAB 
has been making public statements of his uprightness and 
integrity. The Chairman NAB under the National Accountability 
Ordinance, 1999 is head of the investigation agency. The very 
title of the ‘national accountability’ suggest that the nation expect 
from the Chairman and all those who are working under the NAB 
Ordinance that no person who has prima facie committed the 
offence of corruption and misappropriated the public money to 
which every citizen of Pakistan has got a right and claim that the 
ownership of the State treasury belong to them, would be taken to 
task. 
SMC.15/09, etc. 
51 
43. 
 
We may here highlight the purpose of the 
promulgation of the NAB Ordinance, 1999; its very preamble 
deals with the subject matter of the instant case; same is 
reproduced herein below for the sake of convenience:- 
“WHEREAS it is expedient and necessary to provide for 
effective measures for the detection, investigation, 
prosecution and speedy disposal of cases involving 
corruption, corrupt practices, misuse or abuse of power or 
authority, 
misappropriation 
of 
property, 
taking 
of 
kickbacks, commissions and for matters connected and 
ancillary or incidental thereto; 
 
AND WHEREAS there is an emergent need for the 
recovery of outstanding amounts from those persons who 
have committed default in the repayment of amounts to 
Banks, Financial Institutions, Governmental agencies and 
other agencies; 
 
AND WHEREAS there is a grave and urgent need for the 
recovery of state money and other assets from those 
persons who have misappropriated or removed such money 
or assets through corruption, corrupt practices and misuse 
of power or authority; 
………………………………………………………………
………………………………………………………………
……………………………………………………… 
AND WHEREAS it is necessary that a National 
Accountability Bureau be set up so as to achieve the above 
aims;” (emphasis provided) 
 
44.   
It is categorically stated by the FIA in para-8 of Civil 
Misc. Application No. 417 of 2011 that the commercial audit, 
carried out by the FIA was discussed with the Management of the 
PSM but the Management did not agree with  the same rather 
contested the same. It was pursuant to such disagreement of the 
Management of the PSM that the FIA and the Chairman PSM 
agreed thereby to appoint the forensic audit which was carried 
out by M/s AHLN (Avais Haider Liaquat Nauman) Chartered 
Accountants. The Management of the PSM was so adamant not 
SMC.15/09, etc. 
52 
to accept its liability by showing account clearance certificate of 
its dealers and nominated accused firms, stating therein that no 
outstanding amount was recovered from them and it was on such 
basis that the nominated accused persons succeeded in getting 
relief of bail from the different Courts including from the High 
Court of Sindh.  
45. 
 
During the course of investigation by the FIA to find 
out as to who and how huge losses of over 26 billions rupees was 
caused to the PSM, Bank accounts and details of M/s Abbas Steel 
Group and its linkage with Mr. Riaz Lallji, the transaction of 
lifting of billets below the market price was also obtained and 
also to ascertain whether Mr. Riaz Lallji hold any position of 
Director, shareholder or Chief Execution in M/s Abbas Steel 
Group but the FIA failed to establish any linkage between the 
losses caused to the PSM and the involvement or interest of Mr. 
Riaz Lallji.  
46. 
 
Similarly, as one Mst. Sabin Sakina, who was 
reportedly in United Kingdom was served with a questionnaire 
by the FIA regarding her contentions in respect of alleged 
transaction of the PSM with M/s Abbas Steel Group but till to 
date no progress could be made.  
47. 
 
It appears from Civil Misc. Application No. 1576 of 
2012 that Mr. Riaz Lallji and Mrs. Nazneen Lallji, who were the 
SMC.15/09, etc. 
53 
Directors of M/s Abbas Steel Group and were in the Management 
in September, 1996 had apparently resigned from the 
Directorship in the year 2004-2005. At the time of investigation 
M/s Sabina Sakina, Khalid Khan and Malid Bashir Ahmed were 
the Directors for last about three years; strangely enough, the two 
later named persons were made accused in case FIR No. 39 of 
2009 but connection or otherwise of Ms/ Sabina Sakina does not 
surface from the report of the FIA. 
48. 
  
We may reiterate here that the investigation by the 
FIA so far has failed to pinpoint the real beneficiaries under the 
garb of M/s Abbas Steel Group.  
49. 
 
The purpose of present proceedings is not to punish 
someone but to secure the recovery of looted money, which has 
been plundered by the persons prima facie connected with the 
commission of the offence and if there cases are sent up for trial 
before the Court of competent jurisdiction, they shall be held 
responsible but strictly in accordance with law.  
50. 
 
The reasons which persuade us to decide that the 
investigation be taken over from the hands of the FIA and 
entrusted to the NAB are reflected in our order sheets, wherein 
we have noted at different times that whenever a DG FIA could 
make a headway and was about to lay hands on the culprits, he 
used to be posted out on unknown pretext and when Mr. Wasim 
SMC.15/09, etc. 
54 
Ahmed, DG FIA took over the charge, he in open Court had 
disagreed with the investigation of his subordinates. We also felt 
that attempts to divert the fair and honest investigation were also 
made by the Ministry of Interior by appointing Joint Investigation 
Team in spite of the fact that the matter was sub judice before 
this Court and the FIA was carrying out the investigation under 
the directions of this Court.  
51. 
 
Even otherwise, as compare to investigation under 
the FIA, the investigation that would be carried out by the NAB 
would be more purposeful and effective; in this regard we may 
refer to Section 12 of the NAB Ordinance, where under the 
Chairman NAB or the Court, trying the accused for any offence 
under the NAB Ordinance can order freezing of his property or 
part thereof, whether in his possession or in possession of his 
relative, associate or person on his behalf; similarly Section 25 of 
the NAB Ordinance provides for voluntary return and plea 
bargain; through such process at least the State money, which 
belongs to the people of Pakistan can be recovered/retrieved, 
leaving apart the criminal prosecution of the persons involved by 
the Trial Court, if reference is sent before it.  
52. 
 
We have also noticed from so far submitted reports of 
the FIA that many of the nominated accused are still absconding 
and their arrest in the near future is not expected but the NAB can 
SMC.15/09, etc. 
55 
press into service Section 31-A of the NAB Ordinance against the 
accused persons, who are either absconding or purposely 
avoiding being served with the process issued against them either 
by the Court or by other authority like investigating agency 
because under the NAB Ordinance, such conduct itself is an 
offence which is punishable with imprisonment, which may 
extend to two years. 
53. 
 
Keeping in view all above facts and circumstances, 
i.e. undisputedly there is huge loss caused to the PSM in the year 
2008-2009, coupled with the fact that in more than one audit 
reports the reasons have been highlighted for such losses which 
include that major portion of losses is due to misappropriation of 
money and at times due to negligence and mismanagement, we 
feel that to secure the interest of public at large, the propriety 
demands that the investigation so far conducted by the FIA, 
which appears to us unsatisfactory, shall now be taken over by 
the NAB authorities. Therefore, we direct the DG FIA to 
handover all the record so far prepared/collected by the FIA in 
this mega scam of the PSM to the Chairman NAB. Consequently, 
the Chairman NAB is directed to :- 
i) 
supervise/appoint a team of honest and upright 
officers under his administration to further 
probe in the mega scam of losses of more than 
SMC.15/09, etc. 
56 
26 billions rupees to the PSM, which pertains 
only to one financial year i.e. 2008-2009; 
ii) 
determine the accusation against the individuals 
responsible 
for 
such 
losses 
and 
misappropriation including negligence; since 
the sufficient material including the Forensic 
Audit Report will be before him, his team shall 
feel facilitated for further probing in the matter 
in its own manner;  
iii) 
ensure that immediate and stringent steps are 
taken for the recovery of looted money from 
the persons who are responsible for it;  
iv) 
also ensure completion of investigation/enquiry 
within the shortest possible time;  
v) 
further ensure the arrest of the accused who 
have been declared absconder or who may be 
found involved in the case;  
vi) 
that if in his opinion the bail obtained by some 
of the nominated accused is not justified, he 
shall direct his prosecution agency to seek 
cancellation of the same by filing application 
before the Court of competent jurisdiction;  
vii) make it sure that after and on completion of 
enquiry/investigation, 
references 
are 
filed 
against the persons found involved in the 
crime;  
SMC.15/09, etc. 
57 
The above exercise shall be completed by the Chairman NAB 
within a period of three months and fortnightly report about 
progress of the investigation/enquiry shall be filed before the 
Registrar of this Court for our perusal in Chambers and for 
passing appropriate orders, as may be deemed necessary in the 
circumstances.  
54. 
 
Simultaneously, we direct our office to transmit a 
copy of entire record of the case, compiled during the course of 
hearing, along with order sheets to the Chairman NAB for his 
information/ guidance. 
55. 
 
So far as contempt proceedings initiated against  
Mr. A. Rehman Malik, Interior Minister vide order dated 
17.12.2009 are concerned, reference of which has been made in 
para-19 above, the same be registered   independently and notices 
be issued for a date after two weeks.  
 
 
All the titled cases are disposed of in above terms 
along with ancillary Misc. Applications.  
 
 
 
 
 
 
 
 
CJ. 
 
 
 
 
 
 
 
 
 
J. 
 
 
Islamabad,  
 
 
 
 
 
J. 
Announced in Court  
On 16th day of May, 2012.  
 
 
 
 
APPROVED FOR REPORTING.