Archive for July, 2018
How to combat economic terrorism within Pakistan?
July 21st, 2018 | 
Author: We can compare the fluctuations in stock market rates with the currency rates in the forex market, the same way as a corporation’s stock reflects the public opinion of the corporation’s worth; the currency of a nation tends to reflect how the world market values the economic prospects and the future of a country in relation to other countries.
If a company (read country) is doing well, with increasing earnings and higher dividends to its stockholders, the stock of that company will tend to appreciate.
We Pakistanis must know, that without any doubt, the easiest and surest way of moving ahead, is to stand on our own feet.
Foreign aid/loans, can keep us afloat, but won’t allow us to swim. Actually, in constant homegrown methods of growth and development, lies our salvation.
Now, the time has come to separate the growth and development in the sectors of education, health, eradication of poverty, environment protection, human development, conservation of water resources and security of Pakistan, from the politics, forever. Politics and these issues of life and death can not go together.
In this regard, we can not put cart before the horse, which means that economic emancipation of the teeming millions and Pakistan’s financial stability, should be the top most priority, over all other subjects including the democracy, which can wait, after so much waste (over 70 years) of time and resources.
Even democracy can never deliver without its foundations truly embedded, in rock solid and inevitable local bodies system.
It is just a false propaganda of the beneficiaries of the democracy (oligarchs) that if allowed continuity, democracy can work and deliver from the assemblies and senate, without genuinely and financially autonomous grass roots level, fully empowered local bodies system; and not the sham local bodies system, currently prevalent in every province of Pakistan, very reluctantly allowed by the politicians, albeit, on the repeated orders of the Supreme Court.
If Pakistan has to be governed and developed with the current system of few provinces of huge areas having large populations, then it immediately needs a revamped and fully empowered local bodies or COUNTY system; else, we will have to convert every division, into a political and financial autonomous administrative units under the same name and boundaries of the current four provinces, so that no one can politically incite the people (for their own vested interest) in the name of division of a particular province. In this way the name of provinces will stay without any changes in its boundaries, but the current civil divisions can be converted into autonomous administrative units, working with full fiscal independence.
In the meantime, a referendum may also be held to decide about switching towards the presidential form of government.
Further, the biggest reason in the collapse of our economy has been the higher than the highest level of corruption which has created an impression and culture, which ensures that the crime of corruption pays and is an acceptable norm of our society; plus the judicial system which has miserably failed to genuinely punish the big wigs (even if they are found guilty by the court of law) who are caught on corruption or criminal charges of even day light murders, while providing such top level culprits so much facilities (even permission to travel abroad on humanitarian grounds) during trials and after conviction, like the facilities of house arrests and stay at five star hospitals (during the jail terms) that it motivates others, to always indulge in mega corruption and other major criminal activities with impunity.
The level of mega corruption, in fact, puts Pakistan at the top of the most corrupt nation’s league in the world, whose government level financial irregularities are almost double its size of the budget, as depicted from the news quoted below:
Quote.
“The Auditor General of Pakistan (AGP), Javaid Jahangir, has claimed that during the audit year 2017-18 auditors pointed out irregularities amounting to Rs8.276 trillion in the accounts of the federal government.
It may be mentioned that this figure is almost double the amount allocated for the fiscal year’s federal budget that is Rs4.75tr.”
Unquote.
Link:- https://www.dawn.com/news/1402111
We must re-vamp our judicial system to kill the notion that it always ultimately pays to indulge in mega corruption in Pakistan.
Until and unless, the culture of our country which loudly announces that crime of corruption pays in Pakistan, is not changed with radical steps of zero tolerance and no leniency, in (corruption cases) court trials and jail sentences; and severe punishments like DEATH SENTENCES are awarded in the corruption crimes, we will remain a Banana Republic of the worst category.
Under the circumstances, if certain basic changes in our political and judicial systems are not incorporated in our constitution, no dictator or even best of the best civilian leadership or political party, with all the good intentions, can deliver and succeed in pulling out this country, from the abyss.
It has been a good political tactics in the past by all and sundry, particularly by those at the helm of the affairs, to divert the attention of the masses, from the real issues, by mud slinging on politicians, civil and military servants, judges etc.
However, now we must put a full stop to this non-sense, which has wasted the entire 71 years life of Pakistan.
Nothing can match the benefits of the collective wisdom. Since, its a matter of impending economic collapse of the country, impetus for which is being provided by the numerous and rapid devaluations of the currency, since December 2017, which obviously is a sure recipe of disaster, for which all of us are responsible, in one way or the other: almost no one is exempt from the charge of hurting the cause of the country.
It looks that a certain gang of oligarchs within ourselves, is forcing Pakistan (by design) to irreversible bankruptcy disaster, as if, to punish Pakistan, for its some unpardonable crime.
As such, we should take each and every segment and political/social force of the society in confidence, for a very transparent scheme of our future development.
In this connection, Mr. Steve Maraboli has very appropriately said that “Make a pact with yourself today to not be defined by your past. Sometimes the greatest thing to come out of all your hard work isn’t what you get for it, but what you become for it. Shake things up today! Be You… Be Free… Share.”
Let us unitedly, build a new economically strong and politically stable Pakistan, with our collective and prudent decisions; knowing very well that no political party, group or institution is so strong, to run this country, single handedly, for a sustainable period, without the help and cooperation of each other.
Our urgent task must be to stem the economic rot immediately and on EMERGENCY basis.
Government of Pakistan (GoP) must be duly warned that rapid devaluation of the PKR is no panacea for the economic stability and amnesty schemes are factually and cruelly legalising crimes of the 1% rich at the expense of the 99% poor Pakistanis. Moreover, the latest amnesty scheme is so smartly designed that if we deposit 2% (Rupees 4 Crore) of say PKR 2 billion, we can even protect/legalise our FUTURE corruption of PKR 196 crore. Technically speaking the latest amnesty scheme can easily be used to whiten black money to be earned in future, as well.
Moreover, in Pakistan, we can easily control our expenses, if the following statement is adopted as a motto/mission; and implemented as an official policy, and is also displayed in the offices of the civil and military bureaucracy, just below the portrait of Quaid-e-Azam Muhammad Ali Jinnah Sahab:
“Recall the face of the poorest and the weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him.”
In this regard, it is suggested that, we should AIM to bring Pakistan, to the level of Singapore of 2018, by the year 2040.
All politics and other considerations should be made subservient to this TARGET for 2040, even if we have to abolish weekly holidays for the next 20 years & reduce our daily sleeping time to 6 hours.
All stake holders, particularly, from the deprived sections of the society in Pakistan, must immediately come forward, for deciding about the direction of the future of the nation.
Biggest factor in any victory is self-confidence. Anti-thesis of terrorism is education, coupled with economic emancipation. But it must be remembered that no country or society has ever risen from ashes, without individual and collective sacrifices, hard work and discipline, for example Germany, Japan, China, Korea, Turkey and Malaysia. Basically these nations did not waste their time on feeding precious resources to top level democracy which automatically breeds oligarchy.
[Oligarchy is a form of power structure in which power rests with a small number of people. These people may be distinguished by nobility, wealth, family ties, education or corporate, religious or military control. Such states are often controlled by families who typically pass their influence from one generation to the next, but inheritance is not a necessary condition for the application of this term. Throughout history, oligarchies have often been tyrannical, relying on public obedience or oppression to exist. Aristotle pioneered the use of the term as a synonym for rule by the rich, for which another term commonly used today is plutocracy.
Link:- https://en.m.wikipedia.org/wiki/Oligarchy ].
The achievement of these countries named above were not the outcome of democracy at the top level, but participation of the entire population in the nation building at the grass roots level. These nations have risen (from the conditions worse than Pakistan) by the honesty of purpose of their leadership, national discipline, engagement of all segments of society from the grass roots level and rule of law. We very recently watched the example of rule of law from South Korea, where their former lady president was brought to court handcuffed, for a trial on corruption charges.
As such, our nation must embark upon the following agenda, to resurrect our economy, without any further loss of time.
1. We should not expect any different results at the end of the five term after the general elections of 2018 from what we got after the GE-2013. Why; because for any different result there has to be some change. In fact, famous scientist Albert Einstein defined INSANITY as doing the same thing over and over again, without any change and expecting different results.
Now since this country of 220 million population can not afford any further waste of time with so called democratic and dictatorship experiments, it will be prudent to look forward and immediately form a national government, which must be specifically government devoid of Hitmen of the lending agencies and controversial and dishonest people.
This homegrown government should consist of honest members from every segment of society for example labourers, peasants, teachers /professors, students, minorities, professionals from all possible fields and experts from the fields of media, law, military, diplomacy and civil administration.
2. This national government should request to all foreign donors for a 5 years moratorium, on all debt repayments by Pakistan, which is and has been a frontline state of the world’s war on terror (WOT). Here don’t forget that the world powers have totally written off loans of many countries, for much less cooperation than Pakistan, which is practically fighting their war for almost two decades; and Pakistan still NOT charging a penny for overflights in the ongoing war of terror being fought in Afghanistan.
3. 20% per annum reduction in all non-developmental government expenditures, plus total freeze in all perks paid from the national exchequer, involving foreign currency.
4. Maximum tax rate on each and every type of income in Pakistan should be fixed at 10%. This will not only bring huge revenues to the government by giving a fillip to the badly suppressed economy, but will also discourage (to a very large extent) the tax evasion tendencies.
5. Increase in productivity & exports with liberal tax and tariff relief to industry, commerce, trade and agriculture. In fact, our strong point is agriculture and our focus should be to revolutionise it with most modern technologies of smart agriculture, which easily has the potential to create five million jobs in just five years.
6. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis.
7. Outsource the FBR (which will alone increase income by Rs.500 to Rs.1,000 billion) and IMPOSE FLAT 10% tax on ALL & EVERY TYPE OF INCOME (as already mentioned at 3. above), without any exemption or SRO’s (except for the Police and security forces personnel whose salaries may be doubled with expected receipt of un-precedented increase in revenues, due to the above suggestions). This will not only reduce income tax burden on salaried class (with maximum tax rate of 10%), but will also result in so much increase in revenues, to the extent that government will not require any tax imposition, in the budget. Plus, the government will be able to give tax free salaries to all the armed forces, rangers, police and other security agencies personnel, who are shedding their blood, in fighting the menace of terrorism, for our and our children’s safe TOMORROW.
8. The collective financial loss of State Enterprises is above Rs.500 billions per annum. All such entities should be immediately handed over to highly professional, dead honest, most patriotic successful Pakistani and or overseas businessmen, to head and bring in their own members of board of directors, to immediately turn around and successfully run these organisations, like world class companies, as a national cause service to the motherland, on war footings.
Few of the names which comes to mind of our world class successful Pakistani talented entrepreneurs, fully capable to serve the country in times of its dire need, are as below:
– Mr. Shahid Khan at USA, with net worth of $3.8 billion.
He owns Jacksonville Jaguars which worth $770 Million, plus a team in English Premier League ‘Fulham F.C’ which worth $300 Million and also He is the owner of Flex – N – Gate. He is the Richest person of Pakistan. He is presently living in USA. His main source of earnings are from the business of Auto parts manufacturing. He is counted as the 490th richest person in the world.
– Sir Anwar Pervaiz O.B.E
He is the founder and chairman of Bestway Group which is known as the country’s second largest cement producer and 16th largest cash and carry operator in UK, and also he is the Deputy Chairman of United Bank Limited Pakistan. He is one of the renowned investor. He is known as the great businessman in the country. His net worth is $1.5 Billion.
– Mr. Salim Ghauri is a renowned IT Entrepreneur recognised globally today. He is the founder & CEO of NetSol Technologies (1996).
– Mr. Razzaq Dawood is a highly reputed and successful industrialist and philanthropist. One of the founders of the famous LUMS university. He is founder of Descon.
– Mr. Sikandar Mustafa Khan is Chairman Millat group of companies and heads many organisations and forums. He is credited in the country for successfully heading buyout of a government run organisation which is a rare example in the industrial sector of the country in which employees of the same organisation purchased their company and created history of a terrific success story under the professional and administrative leadership of Mr. Sikandar M. Khan.
9. Pakistan’s Foreign policy is excellent in theory, perhaps the best in the world. However, this policy should be implemented in its true letter and spirit with core emphasis on PEACE particularly with its neighbours; and FP’s thrust and theme should be that any and every action must result in the economic benefit of the country.
10. Initiate steps (by imposing economic emergency) to bring each and every economic activity under document.
There is absolutely no doubt that by the dint of sheer hard work, sincerity & honesty, which is imbibed in the bones of the Pakistani work force, we can surely bring Pakistan, into the comity of 20 developed nations of the world, in the next 15-20 years.
The current leaders of Pakistan holding the destiny of this great nation, with highest manpower potential and material resources in the world, must remember the following two adages.
~ NOT FAILURE BUT SETTING LOW AIM IS A CRIME.
~ IN ORDER TO ACHIEVE THE IMPOSSIBLE IT IS PRECISELY THE UNTHINKABLE WHICH MUST BE THOUGHT.
A stern warning to Nawaz Sharif published by Pak Observer in 2013
A stern warning to PM in 2013..!
Mr. PM arrest economic downslide..!
Pakistan Observer 9 Sep 2013
Syed Nayyaruddin Ahmad Email:
nayyar51@hotmail.com
THERE is a strong feeling that government is mortgaging the future of the country with the foreign donor agencies, by taking so much huge amount of loans (that too just for the repayment of the old loans), which this poor country may never be able to repay. This means that in every terms, we have gone bankrupt; and can’t even breathe, without the debt life line.
The gravity of the loan repayment situation can be gauged that during the FY 2102-13 Pakistan spent about 1 trillion PKR out of the FBR’s revenue earnings of less than 2 trillion PKR. Today, Pakistan is not under huge debt, rather, it is completely buried under the debt. The government has borrowed Rs.611 billion in just 40 days from the state bank of Pakistan, as against Rs.507 billion in full year (2012-13). In other words, the PMLN’s government has borrowed Rs.15.3 billion per day in 40 days, as against Rs.1.4 billion per day by the previous regime in 2012-13.
The 6% depreciation of Rupee vs the USD in the last 80 days, has cost Pakistan Rs.3.5 billion per day and has added additional Rs.276 billion in public debt in the last 80 days. (Figures quoted in this para and its preceding para were reported by Dr. Ashfaque H Khan, in his article, titled “A nation’s debt” published by in a national English dated 27 August, 2013).
H’able Prime Minister Mian Nawaz Sharif Sahab, you always spoke against the debt burden through out the last 5 years tenure of the PPP. However, now your government has broken the entire 365 days record of the PPP government in just first 40 days, as per the details explained above. As such, kindly take it as very serious matter (of the economic life and death of Pakistan) because, all the world knows that the USSR, the strongest nuclear power of the world, was broken, not because of any enemy action, but by its own economic melt down.
Sir, unfortunately, all financial indicators points that your era is moving the country fast towards economic melt down. You may remember, I requested you to to take the personal charge of the affairs of the country, lest the situation may not come to a pass, where even you may not become helpless, to stem the rot.
In this regard, after declaring an economic emergency, the following economy and austerity measures are suggested for adoption, to at least put up an impression to the masses, that government is seriously contemplating to improve the economic resurgence of Pakistan. And also to dispel the impression that your economic policy is not to just blindly run the country on domestic and foreign loans and to merely pass your tenure of the government, without bothering about the repercussions of the future inability of the country, to pay back these loans.
Immediate 50% reduction of all the pay and perks of the entire government servants/employees from president to the peon. This should include all government employees, employees of the government semigovernment/autonomous corporations/ banks, PIA, Railways, Steel Mills etc. However, upon improvement of the economic situation the unpaid 50% salary amount should be gradually given back to the employees.
Moreover, for all these government employees, there should be a 50% rebate in payment of all utility bills and educational fees of their children during this period of economic emergency. 50% expenditure reduction in the entire PSDP. Absolute ban on the foreign trips of the government officials. All international meetings to be attended by the respective envoy’s of Pakistan, in that country.Absolute ban on the foreign medical treatment on government expenditure, right from the top to the bottom.
Cessation of the entire subsidy on the food items available to the Senators, MNA’s and MPA’s at the Parliament’s cafeteria, where Roti is served almost free; and even in Peshawar, it is selling at Rs.15/- for the general Public. Complete ban (in real sense) on the official entertainments at all levels.
NAB may be directed to take very immediate steps (absolutely ruthlessly) to recover (from within and outside Pakistan) all the looted national money, on a fast track basis. Immediate nationalisation (without giving any time to the ultra rich people to move their precious jewellery out of Pakistan) of the Gold, diamonds, gems and precious metal in Pakistan.
Reduce taxation rate of all types of taxes, GST, levies, excise etc. to a maximum of 10%. During the currency of this economic emergency period, there should be a ban on increase in the prices and rates of POL, utilities and all essential items.
Is PCB above the law?
Respected Justice (Retd) Nasir-ul-Mulk
Caretaker Prime Minister and Patron of the PCB
اسلام و علیکم
Sir,
I take this opportunity to invite your kind attention towards the state of affairs of the PCB and the role of its Board of Governors, considering that another reported meeting of the BoG of the PCB is scheduled on 17 July 2018.
The current BoG members list is given as below:
Mr. Najam Aziz Sethi Chairman
Mr. Arif Ejaz
Lt. Gen (R) Muzamil Hussain- WAPDA
Dr. Najeeb Samie- HBL
Mr. Miftah Ismail- SSGC
Mr. Mansoor Masood Khan- United Bank Limited
Mr. Murad Ismail- Quetta
Mr. Shahrez Abdullah Khan – Lahore
Mr. Kabir Ahmed Khan – FATA
Federal Secretary, Ministry of Inter Provincial Coordination, Government of Pakistan or any other officer nominated by him shall be an ex officio member and shall have the right to attend and speak at all meetings and otherwise take part in the proceedings of the Board of Governors, but shall not be entitled to vote.
It is requested that appropriate government agency may be deputed to investigate (afresh) and conduct a forensic/management audit specifically with regard to the minutes of the concerned BoG meetings, about why all the honourable BoG members of the PCB (which includes the then federal secretary of MO IPC and its minister Mr. Riaz Peerzada who were duly and separately informed) remained mum, over crores repeat crores of Rupees unlawful (and not allowed as per any clause of Franchise agreement) payments in the PSL-1 tournament, to the PSL Franchises, repeatedly brought to their notice in writing.
Our concerned agencies should also investigate all the honourable BoG members of the PCB, for why they did not raise their voice in any BoG meeting, even when the above matter of unlawful payments was already in their full knowledge and that the granting of BoG’s approval, legally held all of them collectively responsible, of all such grave financial irregularities, which were conveyed to them and was also in their knowledge, specially to the BoG member and the chairman audit committee, Mr. Mansoor Masood Khan, who is himself, a very senior banker, as well.
The agencies must investigate about Media confessions of Mr. Najam Sethi that he had prior [concrete] informations of the players intentions and plans of spot fixings in PSL-2, but he allowed the crime to be committed, he allowed Pakistan to be disgraced, but he STRONGLY opposed and managed to STOP the FIA probe from investigating the spot fixing scandal.
FIA should also investigate all the BoG members of the PCB about why they did not raise their voice in any BoG meeting, even when the above matter was already in their full knowledge?
Further, the relevant agency should question inaction and no inquest and reasons of hiding it under the carpet, on the part of the PCB/PSL management and all the BoG members of the PCB, on the following reported [ https://tribune.com.pk/story/1746622/7-franchise-used-bait-betting-scam-psl2/ ] betting scam about PSL-2, as reported by the media, despite propagation of zero tolerance policy on match fixings:
Quote.
“An alleged betting scam involving former Pakistan cricketers and officials that took place during the second edition of the Pakistan Super League (PSL) has surfaced.
According to a report published in the Daily Express, a couple of former Pakistan cricketers colluded with a regional officer to form a betting company, using the name of a particular PSL franchise as bait. They lured possible betting clients by giving them confidence that they had people inside the franchise —including a coach and a team official — assisting them.” Unquote.
It was also mentioned in the news item that the company claimed that it had dispatched expensive cars and watches to the players as a part of their fool-proof plan. The people who placed bets were assured that the team would lose its first couple of matches, a claim that gained more credence when the team lost its first match — resulting in more bets.
Here the question arises why it was in the interest of the PCB/PSL management to hush up the report and not go deep into the reasons of creation of a company to form a betting company, using the name of a particular PSL franchise as bait?
This is a very serious matter and the silence of the entire BoG of the PCB is really deafening.
Moreover, in an another recently reported scandal, {which deserves deep inquiry from an appropriate federal agency} It is very difficult to believe that PCB and ICC will be so naive to have been startled
[as reported by the daily Dawn in its report dated 25 June 2018 link..https://www.dawn.com/news/1416015 ] by the remarks of Pakistani batsmen Umar Akmal that he was approached by bookmakers during the 2015 World Cup to leave two balls for $200,000 for the One Day match (50 overs match) of ICC World Cup 2015 played at Adelaide, Australia on 15 February 2015.
This was the same match about which former Pakistani Test Cricketer Mr. Sarfaraz Nawaz has been pointing out, about a news item, published in a newspaper, reporting about a top Pakistani official of PCB visiting Delhi and staying at the residence of a famous India Bookie (cricket match fixer) who paid Rs.40 crores and Rs.6 crores for Pakistani cricket team to lose two World Cup 2015 matches against India and West Indies, respectively.
Pakistani team did lose both the matches against India and West Indies in a most miserable manner.
In this regard, the then PM and Patron in Chief of PCB was duly requested for holding an inquiry, but of no avail.
Before dilating over that particular Indo-Pak WC2015 match, it will not be out of context to mention that recently PCB heavily punished Sharjeel Khan for playing two, repeat only two DOT balls in a PSL match, played in February 2017 at UAE.
Some self explanatory statistics of that famous Rs.40 crore Indo-Pak ODI WC2015 match, are provided below for your kind Information.
1. Pakistan lost the match against India by 76 runs (in 47 overs) by not even completing quota of 50 overs. (please remember that there was a reported advance payment of Rs.40 Crore for losing the match against India by an Indian bookie, at his Delhi residence, to a top PCB official. Now the genuineness of this report can easily be verified by checking the travel documents of all top PCB officials, to confirm, if anyone of them did visit Delhi, prior to Indo-Pak 15th February 2015 match and what was the purpose of their visit to India).
2. Now coming to the reported offer to Umar Akmal of USD 2,00,000 for two DOT balls, it will be not be a surprise to note that our team played 168 DOT balls in their innings, which is equal to 28 overs of complete DOT balls. Please remember (as informed above) that Sharjeel Khan was severely punished for playing only two DOT balls in a PSL match.
3. Pakistani team’s playing of full 28 DOT balls in an innings of just 47 overs, means that our team scored on only 114 balls or 19 overs in a match of 50 overs.
4. Umar Akmal himself scored zero and played four DOT balls in that World Cup match against India, while Umar Akmal told Samaa TV that he was approached by bookmakers during the 2015 World Cup to leave two balls for $200,000.
5. In this regard, Media has also reported very alarmingly that after PCB issued a show cause notice to Umar Akmal, he was called at the PCB headquarters in Lahore and subsequently PCB allowed Umar Akmal to play a league tournament in Canada. If this news was correct, it clearly implies that PCB has decided to not take any further action against Umar Akmal and the startling scandal was shelved by the PCB without taking it to its logical conclusion.
In this connection, some further main points for your consideration of an investigation against PCB and PSL management and financial irregularities are detailed below for your convenience and consideration please.
1. Why Mr. Najam Sethi sent (after refusing the permission initially but when the League agreed to pay few lac dollars to the PCB the consent was accorded) our 27 players in the lap of the Indians infested T10 League in the UAE and why no member of the BoG of the PCB ever questioned this matter in the board meeting?
2(a). Complete and abject surrender of PCB before the Indian Cricket Board (BCCI) in the ICC.
PCB under Mr. Najam Sethi voted in December 2017 for India (BCCI) to be made Big-1 after voting to make India Big-3 in 2014.
No international cricket during IPL from 2019 [Update Post #97]
Link:- http://www.pakpassion.net/ppforum/showthread.php?267451-No-international-cricket-during-IPL-from-2019-Update-Post-97
Link:-https://www.google.com.pk/amp/s/m.timesofindia.com/sports/cricket/ipl/top-stories/virtually-no-international-cricket-during-ipl-from-2019-bcci-ceo-johri/amp_articleshow/62544323.cms
2(b). Why Mr. Najam Sethi did not raise any objections in the last meeting of the ICC held in Singapore on 7-8 December 2017 over the Indian plan of making BCCI as Big-1, and agreed unconditionally, with the Indian plan which stipulates that from 2019 onwards, no cricket series will be played in the world under the ICC’s auspicious, during the days/time when IPL will be underway in the months of April and May? Strangely, the England’s Cricket Board (ECB) objected to this proposal of the BCCI, but Mr. Najam Sethi representing PCB, unconditionally supported the Indian Plan and raised no objection. And, despite such a huge and highly anti-Pakistan’s interest, favours granted to the Indians by Mr. Najam Sethi, what we we got from the Indians was that they refused to send to Pakistan, their blind cricketers team to play the World Cup matches during January 2018 in Pakistan; and on top of that Mr. Najam Sethi allowed our blind cricketers team to play against Indian team, the World Cup match, in the UAE, wherein, when the Indians refused to play in Pakistan, their match should have been forfeited and points awarded to Pakistani team: which when went out of home ground, to play in UAE, lost to the Indian team and Indian Blind team ultimately won the World Cup also.
Pakistan cannot allow Mr. Najam Sethi to make the PCB subservient of the Indian cricket board (BCCI) for reasons best known to Mr. Najam Sethi.
2(c). Mr. Najam Sethi is constantly humiliating Pakistan, by supporting out of the way [also remember Mr. NajamSethi’s all out and full support to the Indians in 2014 for the Big-3 plan in the year 2014, when, even Indian notables were raising their voices, against this Indian hegemonist plan in the ICC].
2(d). 450 million dollars question?
Reproduced below are some of the excerpts of the daily “The Express Tribune” news published on 30 June 2014 which proves that PCB’s income was to have been $450 million as a reward of supporting Indian Cricket Board’s plan of Big-3 in the ICC, which was originally (rightly) opposed by Mr. Zaka Ashraf, the then Chairman PCB, before Mr. Najam Sethi became Chairman PCB, as Zaka Ashraf point blank told the Indian Cricket Board Officials that any offer of tour of Indian Cricket team to Pakistan must be assured by a bank guarantee to PCB, so that in the event of any back out from the Indians, PCB will not suffer any financial loss and PCB’s support to the BCCI’s plan of Big-3 will not go down the drain, without any consequences for the BCCI.
Excepts of the news published by the daily “The Express Tribune” dated 30 June, 2014 are reproduced below.
LAHORE: Pakistan Cricket Board chief Najam Sethi claimed on Monday that his country will earn $450 million from the next eight-year cycle, mainly from four series with arch-rivals India.
India and Pakistan signed an agreement to play six series, four of which Pakistan will host in the next eight years, on the sidelines of an International Cricket Council (ICC) annual conference in Melbourne last week.
The windfall for Pakistan was made possible after they conditionally agreed to approve an ICC revamp that gives major powers to cricket’s “Big Three”, India, Australia and England.
“We get the most revenues when we play with India and if all goes well we are set to earn $300 million from the four series we host against India,” he said.
That, Sethi claimed, will get Pakistan the most funds after the Big Three.
“We will get revenues on fourth number, and I can say with confidence that in the next eight year cycle we will get $150 million dollars from the ICC,” he said, bringing the total takings to $450 million.
This compares to Pakistan receiving $10 million from the ICC per year in the last seven-year cycle, Sethi added.
3. Be Fooling the Nation:
3(a). Why the nation is being be fooled by Mr. Najam Sethi Chairman PCB by lodging a meagre $70 million compensation claim vs BCCI (against expected revenue of $450 million according to his own words reproduced above) with the Dispute Resolution Committee of the ICC [The Pakistan Cricket Board (PCB) is seeking $70 million in compensation, as reported by the daily The Express Tribune dated 11 April 2018 excerpts and its link reproduced as below:
Excerpt:
The Pakistan Cricket Board (PCB) is seeking $70 million in compensation. It initiated dispute resolution proceedings against the Board of Control for Cricket in India (BCCI) at the ICC in November last year.
link:- https://tribune.com.pk/story/1683067/7-icc-forms-panel-resolve-pakistan-india-dispute/ ]
According to the own statement of Mr. Najam Sethi reproduced as below and also quoted above there would be NO COMPENSATION IF INDIA DOES NOT PLAY DUE TO NON-CLEARANCE FROM DELHI QUOTED AS BELOW:
“But Sethi said there would be no compensation if India does not play due to non-clearance from New Delhi.
“There was no compensation before, there is none now. This is not the norm in mutual series when government does not give permission.”
Link:- https://tribune.com.pk/story/729174/big-four-pakistan-to-earn-450-million-in-cricket-cycle/
AS SUCH THE MILLION DOLLAR QUESTION IS WHY MR. NAJAM SETHI GOT AN APPROVAL FROM THE BoG OF THE PCB FOR AN EXPENDITURE OF ONE MILLION DOLLAR/POUNDS IN CONNECTION WITH THE EXPENSES OF FILING THE COMPENSATION CLAIM [THAT TOO FOR A MEAGRE AMOUNT OF ONLY $70 MILLION DOLLARS INSTEAD OF $450 MILLION] WITH THE ICC AND WILL ANYONE FROM THE GOVERNMENT ASK THE CHAIRMAN PCB TO PAY BACK TO PCB ONE MILLION DOLLARS?
4. There was a huge question mark on the non-transparent auction of media rights by the PCB for EIGHT years (2015-2023) instead of FIVE years; and that too for a lesser value from the previous five years media rights auction (2008-2013).
Before dwelling in the details of the PCB’s media rights auction, the following questions needs satisfactory answers:
a). PCB invited Mr. Andrew Wild Blood an international expert on media rights, to ascertain the value of PCB’s media rights, apprised the PCB directors and senior management that its value was around $300 million to $400 million, then why the rights were sold at much less amount for EIGHT years instead of FIVE years, which was allowed by the members of the Media Rights Bid Tender Committee.
b). Why 12 foreign companies who paid $10,000 (each) to PCB for purchasing the tender documents for participation in the PCB’s media rights auction, were not allowed to participate in the bidding; and only two companies namely, GeoSuper TV and Ten Sports TV were allowed to bid for the tender.
C). Although, the Media Rights auction comes under the PCB’s Marketing Department, why the Director and General Manager of the Marketing Department were NOT allowed to sit in the tender opening of the auction.
First of all kindly peruse below the Indian Cricket Board’s (BCCI) comparative performance of earnings of huge income from the auction of its media rights for the next five years (not eight years) over the previous auction of media rights:
5(a). Rupert Murdoch’s Star paid 38.5 billion Indian rupees ($592 million) for the rights to broadcast India’s home matches from 2012-2018.
5(b). Broadcasting giant Star India on Thursday completed its virtual monopoly over Indian cricket by bagging the media rights of the national team’s home series as well as domestic cricket for the next five years by shelling out a staggering Indian Rs 6138.1 crore ($944 million approx).
5(c). The exact increase of next five years earnings of BCCI of media rights over previous seven years (2012-2018) comes to:$944 million – $592 million = $352 million
5(d). Percentage increase comes to 62.71
5(e). On yearly basis the increase is detailed as below:
$592 million divided by 7 years (2012-2018) = $84.57 million year
$944 million divided by 5 years (2019-2023) = $188.8 million
Yearly increase comes to 123.24%
6. PCB’s comparative analysis of media rights income from auction:
6(a). According to the media reports (PCB rarely officially/transparently provides its figures like the BCCI) the PCB on 27 March 2015, auctioned its media rights for the next eight years {2105-2023} (including the 4 proposed Indian team’s visits for the home series to be played in Pakistan or outside Pakistani soil) for less than $150million (as per AB TAK TV channel report the bid amount for the auction was just a peanut of $125 million, with further deductions of production costs and UDRS expenses which may be over $10-15 millions, reducing the net earnings to a meagre amount of around $110-115 million), compared with the PCB’s 2008-2013 five years media rights auction amount of $144 million.
6(b). The exact DECREASE of next eight years (2015-2023) earnings of PCB’s media rights over previous five years (2008-2013) comes to:
$115 million – $144 million = NEGATIVE $29 million
6(c). Percentage decrease comes to Minus 20.13%
6(d). On yearly basis the DECREASE is detailed as detailed below:
$144 million divided by 5 years (2008-2013) = $28.8 million per year
$115 million divided by 8 years (2015-2023) = $14.38 million per year
Yearly DECREASE comes to 49.93%
7. Besides the matters pointed out above the Chairman PCB and all its BoG members must be asked to provide plausible and satisfactory answers of the following unlawful payments and mismanagement in the affairs of PCB and PSL:
7(a). PCB must provide the following documents:
i). Complete with all annexures, Internal and external audit reports of PCB for years 2013-2014, 2014-2015, 2015-2016, 2016-2017.
ii). Complete Internal and external audit reports with annexures of PSL-1 and PSL-2.
iii). Complete and all documents demanded by the Special Audit Team of the AGP which conducted the Special Audit of the PCB in 2017 and such documents were not produced before the Special Audit Team.
8. Why a huge amount Rs.22 Crore was paid by the PCB to its five franchises from the profit of PSL-1 when:
8(a). No such payment clause was mentioned in the agreements with any franchise party?
8(b). No prior audit of PSL-1 was conducted.
8(c). No Prior audit of any franchise company was conducted before payment/release of this huge amount of Rs. 22 Crore to the five franchises.
9. Why an amount of about Rs.40 crore was paid to the five franchises on account of a one-sided and strange clause in the franchise agreement, which stated that franchises will be paid out of the income from Pool Money, a minimum of 80% income amount?
9(a). Nowhere, in any agreement, minimum limit of payment is mentioned. And the upper or maximum limit of payment was deliberately not mentioned in the franchise agreement, which caused huge, straight and strange loss to the PCB.
9(b). Accordingly, this clause resulted in unprecedentedly reduced payment to the PCB, on account of pool money income, notwithstanding the fact that initially and still now, the PSL gets all the time, resources and money (PCB paid huge amount of seed money to start PSL) from the PCB. It is reported that initially, PCB gave seed money of Rs.50 Crore for PSL venture.
9(c). Why this huge payment allowed of pool money (minimum 80% MAXIMUM NO LIMIT) to the five franchises which was also highly disproportionate to the seed money’s big share of the PCB, which it contributed at the time of establishment of PSL secretariat?
10. Why beyond agreement and unlawful Payment of Rs.5 crore was allowed to the five franchises on frivolous account of Support fund, which was highly objectionable way of dishing money unlawfully, from the income of PSL-1?
11. Why PSL-1 budgeted expenditure which was about Rs.77 crore, but actual expenditure went to almost Rs.90 crore? Again no vouchers verified, no tangible and cogent reasons were provided with documentary proof of basis of originally budgeting the expenditure and verifiable documentary evidence, of reasons of excess actual expenditure of about Rs.12 crore of Rupees.
12. Why Mr. Najam Sethi did NOT allow the auditors of the Special Audit team of the AGP office in 2017 to SEPARATELY audit the PSL-1 and PSL-2 accounts, despite Mr. Najam Sethi telling the nation on media many times that PSL-1 accounts have been audited and PSL-2 accounts were under audit? What actually happened when Special Audit team of AGP office went in 2017 to conduct Special Audit of PCB/PSL that only PCB’s accounts (without all marketing department’s documents) were allowed by Mr. Najam Sethi to be audited, but he continued to mislead the nation by telling over media that PSL-1 accounts have been audited and approved by the board and the audit of PSL-2 accounts will be completed by early January 2018. (link:- https://m.youtube.com/watch?v=_ZIHYxUoDIE ). Here in this video of 22 November 2017 he categorically told that PSL-1 Audit was completed and APPROVED and about the stage of audit of PSL-2 all questions of the external auditors have been replied by the PCB and provided to the external auditors, who (External Auditors) will finalise & submit their report by 1st or 2nd week of Jan.2018.
13.When reportedly PCB loaned Rs.50 Crore as seed money to start PSL and a separate secretariat was established (with Mr. Najam Sethi appointed as Chairman of PSL) and even near about Rs.4 Crore was unlawfully paid to 33 PCB senior/junior employees as PSL allowance, why now PCB did not allow audit of PSL with the Special Audit Team of the AGP office?
14. Further, there is another extremely important point that if PSL accounts were not maintained separately then false profit was declared and distributed to the five franchises, by absorbing PSL expenses into the overheads of the PCB. This act if it has happened is nothing but a deliberate financial crime and gross unlawful act for which not only Mr. Najam Sethi, but the entire members of the Board of Governors, the Audit Committee (of which Mr. Najam Sethi was also a member) and the CFO (who was also paid an hefty amount as PSL allowance) are responsible, collectively and individually.
15. Why separately and unlawfully very high amounts of about Rs.4 crore were paid to 33 employees of the PCB, who were looking after the PSL’s work as Pakistan Super League Allowance without approving Eligibility Policy? Now, who will pay back these unlawful salary disbursements to the PCB, Mr. Najam Sethi the then chairman PSL, CFO, all the members of the audit committee or all the members of the BOG, who raised no questions on these unlawful payments while approving the accounts of PSL-1?
16. Why Mr. Najam Sethi violated the ethics and norms of the corporate good governance practices by keeping himself as a member of the Audit committee of the PCB, which resulted in the audit committee of the PCB not raising any objections for not conducting a separate audit of the PCB and on other huge unlawful payments.
17. A question must be asked that why the Draft for players for PSL-2 was not held in Pakistan but held at Dubai (causing huge avoidable expenditure) when it was earlier held in Pakistan for PSL-1?
18.The approving authority of this holding of Draft for players for PSL-2 in Dubai, should be asked to refund this extra expenditure from his/her own pocket.
In the meantime, it is requested that till all these inquiries of severe financial and administrative irregularities in the PCB/PSL are finalised, the Honourable Prime Minister and the Patron of the PCB Respected Justice (Retd) Nasir-ul-Mulk Sahab is requested to immediately remove the chairman PCB and dissolve the PCB’s BOG with an ad hoc body, which should be headed by a spotless, competent and non-partisan personality, with sufficient experience of business/management/administration and enough knowledge of the game of international and local cricket.
