Sost Port loan recovery hits snags
by Farooq Ahmed
GILGIT, Oct 31: The National Bank of Pakistan which advanced a loan of Rs50 million to Salim Khan, son of Northern Areas Chief Executive Ghazanfar Ali Khan, in his capacity as vice-chairman of the Silk Route Dry Port Trust, Sost, last year is facing problems in the recovery of the loan because the Chinese co-partners have disowned all responsibility in this connection.
The Chinese officials have demanded NBP to hold an inquiry how could such a loan be secured without their written consent and against mortgage of the port assets which was in contravention of the partnership deed.
A senior official of the NBP told Dawn that the matter of recovery of the loan was pending the settlement of the management dispute between the old management and the trustees of the port.
But since the dispute had now been settled by the Northern Area Chief Court by removing from office the old management in which Salim Khan was the vice-chairman and his father Ghazanfar Ali Khan, Chief executive of Northern Areas, Chairman, the bank was trying to figure out how to recover the loan as the Chinese partners claim ignorance about how the loan was obtained.
According to details, Salim Khan, former Vice-Chairman, Sost Dry Port Trust had obtained a loan of Rs50 million from the Sost branch of NBP on an application jointly signed by the former and the Chinese partner. But later the Chinese side disowned the signatures and claimed the papers used in obtaining the loan were not genuine and had been faked from other documents for the purpose. The Chinese side conceded the matter had been brought to them but they had opposed the loan and thought that the proposal must have been dropped. The loan came to their notice when they found an amount of Rs1.46 million deducted as mark-up in the port accounts. They immediately warned the NBP and were shocked to find the loan had been obtained despite their disapproval of the plan.
Salim Khan admits obtaining the loan but with the consent of the Chinese partners. He claims with documents showing the amount was utilised on development works on the port.The president of NBP had ordered probe into the matter when the Chinese disowned the loan. “Already one inquiry has been conducted at the behest of bank president and its recommendations are secret and now management audit is ongoing. So things would clear up shortly which party is at fault and why such huge amount was given as loan without assuring that papers are genuine”, the bank official told this correspondent.
The NBP officials think since one party admits having drawn the loan against mortgage and proper sureties, the bank reserves the right to adopt due procedures for recovery under the law.
It may be recalled that last August Mr Hou Enzu, Managing Director Pak-China Sust Port Company, had accused Salim Khan of obtaining Rs50 million loan from the NBP without the knowledge or consent of the Chinese side. In an official letter to Deputy Commissioner, Gilgit, Mr Hou Enzu had stated that Rs1.46 million were untraceable in the Joint Venture Account CA-880.5 of Pak-China Sost Port (PVT) Ltd., when he along with his colleague Mr Deng Xiaobin went to the bank and learned that the amount had been deducted as mark up on a Rs50 million loan. Bank record showed that Rs50 million had been transferred in October 2007 into the account of Silk Route Dry Port Trust.
Mr Hou Enzu said the Bank was told that the Chinese side had opposed the loan when a false resolution was submitted to them signed by seven directors of the Trust. They had refused to sign any paper for this purpose. Daily DAWN
He has spent all this amount in buying luxuries for himself rather than spending the amount to the development of the local population. This family was almost bankrupt before winning the last elections and were managing their dal rotee by selling poplar trees and chinese liquor. How come they have now so many big cars and enjoying other luxuries because Salim Khan got 50 million bounty for free and we the local people r just silent like deafs.
On the other hand his father is busy collecting briebs from contractors and govt. officials.
Drag them to courts and bring them to justice before they sell us.
It’s just the tip of the ice berg. Curroption of local white collars usually go unnoticed in this ‘no man’s land’ of our’s. The involvement of the local administration cannot be denied as why any action against the accused is not being taken till the present. Scams surfacing the local media or even the national media should not be looked at as the solution. The whole system needs a change. Untill and unless the region is under seige of the military and civial beurocracy nothing can ever change. Empowerment of the local population is a distant dream till the finnal settelement of the kashmir dispute which God knows when will come to an end. Anyhow the scam should be taken as an eye opener to cast a vote in the comming elections.
Dear farhat & Abbass!
you are crying on the splitted milk, all of it is done…… were you really not aware of all that??i question, why they go unnoticed?? where were you at the time when majority of Gojal 2 and some people of gojal1 were fighting 4 their rights,,, i.e on the dry port brunt? this is u, who have made such people white collored! i salute all those who contributed even a small hand to the resolution of this issue. Fatal diseases must be cured at right time otherwise it ends with a bad climax.
K.A.B.
Just for once it would be good to see true justice done. While the matter needs to be fully & transparently investigated (and the results reported to the people), it shocks me to have the thought that this family think they can fleece the people like in the olden days. Gazanfar was given a position of representation of the people BY THE PEOPLE and he and his family seem to continually carry on as if they are the rulers of our people. When are they going to be made to realise that they are ordinary citizens of Pakistan just like the rest of us. I request to the intellectual community of Hunza Valley (from Shinake to Khunjerab) to come forward and speak about the corruption done by this family. May true justice be done.
….we used to babble alot here..when the days of elections come these people wounder after the electives……….
…if Sailim khan z involved n embezzlement in the true sense,he must be PUNISHED..to set an example for the youth of hunza that here all are human beings..we dont care for family status,we care for intelectuals….despondent resident of hunza(aziz)
well, true said. its a big corruption in such a small place like sost!! For me the speding of this 50 million is not shocking but disbursement of this amount is shocking+ amaizing. the above article shows that the loan is disbursed without fulfilling the regulatory requirement. in other words the bank officials are also involved in this corruption. Signature verification is the primary and most important part of banking documentaion and wrong verification means negligence of the bank verifying authority + unfulfillment of the KYC. here the case is very clear that its a partnership so they should have had a meeting with Dryport authorities from both Pak n China side. because it was not a loan of one lac or two lac, 50 million is a hell of amount and to approve such a loan to a mumultinational organization needs extreme care and verification. Who approved this loan and how the verification of documents were carried on?? itz the first question in this case.
now a loan whose approval is an enigma ofcourse the disposal of that amount will be a bigger enigma!!!
@l!
agree with karim sahab!!!
you are crying on the splitted milk, all of it is done…… were you really not aware of all that??i question, why they go unnoticed?? where were you at the time
its over