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National Accountability Bureau Rawalpindi files corruption reference against Arshad Farooq Faheem

Islamabad, June 21, 2016 (PPI-OT):NAB Rawalpindi has filed a corruption reference against Arshad Farooq Faheem (The Then Chairman Drugs Pricing Committee) Additional Secretary (BPS-21), Wafaqi Mohtasib Secretariat , Dr. Muhammad Ali (The Then Secretary cum Member Drugs Pricing Committee) Ex Member Pricing (BPS-21) DRAP, Saleem Isharat Hussain (The then Member Drugs Pricing Committee) Chief Drug Inspector (Rtd), Health Department Govt of Sindh, Ayaz Ali Khan, The Then Member Drugs Pricing Committee (Ex Chief Drugs Controller Punjab) Chief Operating Officer Pakistan Drugs Testing and Research Center, Lahore R/o 5-A, Faisal Town, Lahore., Sabir Ali (The Then Member Drugs Pricing Committee) Chief Drug Inspector (Rtd) Health Department, Govt Khyber Pakhtoonkhwa, Abdul Salam Mufti (The Then Member Drugs Pricing Committee) Chief Drug Inspector (Rtd), Health Department Govt of Punjab, Sultan Ahmed (The Then Member Drugs Pricing Committee) Senior Drug Inspector, Health Department Govt of Baluchistan , Rashid Latif Sheikh (The Then Member Drugs Pricing Committee) Ex Director Cost Accounts Organization, Ministry of Finance and Seven pharmaceutical companies M/s Maple Pharmaceuticals (Pvt.) Ltd, M/s Akhai Agencies, M/s Zam Zam Corporation, Excel Health Care Laboratories (Pvt.) Ltd, M/s Saffron Pharmaceutical (Pvt.) Ltd, M/s Galaxy Pharma (Pvt.) Ltd M/s Martin Dow Ltd and others regarding drug pricing issues in Accountability Court Islamabad.

The members DPC in connivance with each other’s and beneficiary Pharma companies / firms extended undue financial favors to Pharma companies / firms in the shape of illegal and unjustified price increase to their drugs through DPC meeting held on 09-10-2012 and 22-01-2013 and subcommittee meeting held on 19-11-2012.

The wrongful financial benefits derived by the eight pharmaceutical companies / firms on the basis of price increase through above said meetings comes to be *Rs. 1078.08 M* appox till 30-6-2015 (out of which one Pharma company *M/s RG Pharmaceutical (Pvt.) Ltd* returned an amount of *Rs. 385.12 Million* through Plea Bargain) after deducting retailer and distributor margin. This illegal benefit is perpetually being gained by the pharmaceutical companies / firms who submitted inflated invoices / incorrect / incomplete costing data and were selling of their drugs on prices which were illegally increased by the members of DPC.

As per details, NAB received a complaint wherein it was alleged that officers / officials of Ministry of National Regulation and Health Services Division (NR and HSD) and others were involved in illegal increase in prices of drugs through Drugs Pricing Committee meetings. The prices of the drugs were fixed as per section 12 of Drugs Act 1976 by Drugs Pricing Committee (DPC) duly constituted by Federal Govt.

During the process of Investigation, it revealed that the Pharmaceutical companies in connivance with accused Officers/ Officials submitted incomplete/incorrect and inflated invoices to DRAP for fixation of drugs prices at exorbitant rates. Due to illegal price hike in the DPC meetings held on 09-10-2012 and 22-01-2013 and sub-committee meeting held on 19-11-2012 approx Rs 1078.08 Million has been pocketed by these Pharmaceutical companies causing unbearable burden on general public. In this case two accused persons namely Tariq Haider and Mian M Khalid were arrested but released after payment of their liability through Plea Bargain.

So far NAB Rawalpindi recovered Rs. 385.11Million from accused persons namely Tariq Haider and Mian Khalid Mehmood Directors of M/s RG Pharmaceutical (Pvt.) Ltd in the investigation against officers / officials of national regulations and services, beneficiaries and other regarding drug pricing issues through Plea Bargain whereas Reference against accused persons for the remaining wrongful gain of Rs. 692.96 million has been filed in Accountability Court, Islamabad.

NAB has recommended in this Reference that the accused persons be punished in accordance with law and the drugs prices be reduced in the previous level so that general public may benefit from it as was done in the case of M/s RG Pharmaceutical Pvt. Ltd. Director General NAB Rawalpindi Zahir shah said NAB strongly believes in Zero Tolerance Policy against Corruption. NAB’s Anti-corruption campaign is carried widely for awareness and prevention of corruption besides Enforcement across the board.

NAB hopes that joint efforts of all stakeholders can collaborate to check corruption and corrupt practices before happening with the help of all stakeholders. NAB officers/officials under the leadership of Chairman NAB Mr Qamar Zaman Chaudary are determined and committed to perform their national duty with absolute objectivity, thorough professionalism, and unimpeachable integrity and without any leanings for or against anybody.

For more information, contact:
National Accountability Bureau (NAB)
Attaturk Avenue G-5/2, Islamabad, Pakistan
Tel: +92-51-111-NAB-NAB (111-622-622)
Fax: +92-51-9214503
Email: chairman@nab.gov.pk, infonab@nab.gov.pk
Website: www.nab.gov.pk

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