Inquiry report reveals ‘massive embezzlement’ in Islamabad’s Zakat fund

ISLAMABAD: An inquiry committee pointed out embezzlements to the tune of millions of rupees in the Zakat fund and recommended action against officials involved in the corrupt practice.

Sources said that an inquiry committee, which was formed in October 2024, recently completed its finding, pointing out alleged embezzlement by several officials of the district administration and the local chairman of the Zakat committee.

After receiving information about the misuse of the fund, a preliminary inquiry was ordered that pointed out alleged corrupt practices. “Subsequently, we referred the matter to FIA for a proper probe,” said Chief Commissioner Mohammad Ali Randhawa.

Speaking to Dawn, he said that the fund was meant for deserving and underprivileged people; therefore, I personally monitored the inquiry,“ he said. “The FIA will properly probe the matter, and anyone found guilty would face strict action,” he said.

Commissioner says matter referred to FIA after preliminary inquiry; investigators propose external audit

According to sources, reports about misappropriation in the Zakat fund involving certain government officials as well as the formation of 185 alleged illegal local zakat committees surfaced in October.

Subsequently, the chief commissioner ordered an inquiry into the matter by forming a preliminary fact-finding body. The committee after probing the matter and recording statements of the officials concerned recommended that the matter be referred to the FIA.

The inquiry report has been shared with the interior ministry for its onward submission to the Federal Investigation Agency for a “detailed inquiry into the corrupt practices in the Islamabad Zakat and Ushr Committee and initiating criminal proceedings against the persons found involved in the embezzlement of Zakat funds”.

The committee recommended that a provincial Zakat Council should be established as per section 14 of the Zakat and Ushr Ordinance to supervise the performance and matters of the Islamabad Zakat and Ushr Committee.

It said the Zakat and Ushr Committee and local committees in Islamabad may be suspended and an administrator may be appointed forthwith, adding that elections be held within a period of six months, debarring the incumbent officials as disqualified.

The report also called for a special audit to determine the misappropriated amount. The report said a stenotypist was asked to join the inquiry but he did not join, recommending that a case for his dismissal from service may be initiated.

The district zakat officer was responsible for securing the record in the Zakat office, but the record related to several committees was missing, it said, adding that the official was not authorised to constitute the local committee but he formed eight committees abusing his authority.

It further revealed that an official of the District Zakat Office, who is working in the admin wing of the Chief Commissioner Office, may be repatriated back to his department.

There were also allegations against the audit officer but without any documentary proof. The report, however, said he may be directed to conduct a complete internal audit of the Local Zakat Committees, hospitals and institutions where the fund was allocated and submit the report within two months. It also said the subsequent audit report be compared to the report of the external audit.

The report also recommended the forensic audit of the “fake cheques be done to ascertain the writing and signature of [the] chairman [of] IZUC”.

The inquiry committee also recommended that the office of the district zakat officer be revamped and the officials be permanently posted to run the office in an efficient manner, adding that vacant posts be filled on a priority basis.

“Lastly, the efforts should be made to verify the beneficiaries through biometric records in consultation with Nadra…to ensure transparency in dispensation of the Zakat funds to deserving people and prevention of corrupt practices,” the report concluded.

Published in Dawn, January 29th, 2025