Federal Investigation Agency against the Crime

FEDERAL INVESTIGAION AGENCY AGAINST THE

CORRUPTION

Research Proposal

Jahangir Khan
Seat No - ED 21723011
PGD-PA (Evening)
University of Karachi
Karachi - Pakistan

Abstract
The Federal Investigation Agency is a border control, criminal investigation, counter-
intelligence and security agency under the control of the Interior Secretary of Pakistan,
tasked with investigative jurisdiction on undertaking operations against terrorism,
espionage, federal crimes, smuggling as well as infringement and other specific crimes.

Corruption exists in all societies in varying forms and degrees. Since its inception, Pakistan
has been struggling to contain corruption, initially in public sector, and subsequently in
private sector. Apart from instituting oversight and regulatory mechanism in form of
parliamentary Public Accounts Committees, Auditor General and Ombudsman offices,
regulatory bodies and departmental mechanisms, the main focus of Pakistan’s efforts has
been the enactment of anti-corruption laws and their enforcement through Anti-Corruption
Investigation Agencies (ACIAs) National Accountability Bureau (NAB), Federal
Investigation Agency (FIA), and Provincial Anti-Corruption Establishments (ACEs).

Keywords: Investigation Agencies, Corruption, Anti-Corruption, Performance, FIA, NAB,

ACEs

Introduction

The Federal Investigation Agency is a border control, criminal investigation, counter-

intelligence and security agency under the control of the Interior Secretary of Pakistan,
tasked with investigative jurisdiction on undertaking operations against terrorism,
espionage, federal crimes, smuggling as well as infringement and other specific crimes.

Historical Background

In 1942, the British government established the Special Police Establishment (SPE) in
British India during the midst of World War II. Originally the Police Establishment was

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tasked to take up investigation of corruption in Indian Civil Service (ICS), rampant in the
Supplies and Procurement Department of the then British Raj. After the independence of
Pakistan in 1947, the SPE was equally divided between the governments of India, which
formed the CBI, and Pakistan, which retained it as the Pakistan Special Police
Establishment (PSPE) in 1947.With the passage of time, the PSPE, apart from
investigating the offences of bribery and corruption against officials of the federal
government, was also given powers to investigate cases relating to offences under the
following laws:

 Official Secret Act, 1923

 Foreign Exchange Regulation Act, 1947
 Passport Offenses Act, 1952
 Customs Act, 1959

Creation of FIA

After the 1971 war with India, police reforms were carried out by Prime Minister Zulfikar
Ali Bhutto after adopting recommendations from the report submitted by bureaucrat G.
Ahmad in Prime Minister Secretariat, on 7 March 1972.The Federal Investigation Agency
(FIA) was created on 13 January 1975, after being codified in the Constitution with the
passing of the FIA Act, 1974, by the State parliament. Initially, its first roles were to build
efforts against organized crimes, smuggling, human trafficking, immigration offences, and
passport scandals.

When the FIA was created, it took cases ON corruption at every level of the government.
Although ostensibly a crime-investigation service, the FIA also did investigations of
accused political opponents and critics of financial impropriety, from tax evasions to
taking bribery while in office.

Departments & Priorities of FIA

As of 2021, FIA has 11 active departments to lead criminal charges and investigation, with
priorities:

1. Anti-Corruption
2. Anti-Human Trafficking and Smuggling
3. Counter-Terrorism
4. Economic Crime
5. Electricity, Gas, Oil Anti-Theft Unit
6. FIA Academy
7. Immigration

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8. Interpol
9. Intellectual Property Rights
10. Integrated Border Management System
11. National Response Center For Cyber Crimes

Priorities
 Counter-terrorism Wing (CTW)—tasked to protect Pakistan from all kinds of terrorist
attacks, including cyber, bioterrorism, chemical, electronic and nuclear terrorism.
 Anti-Corruption Wing (ACW)—Tasked with undertaking investigations and combat
all public corruption at all levels of command.
 Economic Crime Wing (ECW)—Mandate to protect Pakistan from economic
terrorism and protection of intellectual property rights of the people.
 Immigration Wing (IW)—Combat human trafficking activities and resist illegal
immigration in Pakistan.
 Technical Wing (TW) — tasked to make efforts to protect Pakistan against foreign
intelligence operations and espionage as well as using scientific assistance to resolve
high-technology crimes.
 Legal Branch (LB)—Responsible to provide legal guidance in all administrative and
operational matters as well as protect civil rights.
 National Central Bureau (NCB) — tasked to combat transnational/national criminal
organizations and enterprises with assistance from Interpol and the US Federal
Bureau of Investigation (FBI).
 Anti-Trafficking Unit (ATU)—tasked to combat major violent crimes, to ensure
country-wide coverage of human trafficking, as well as to prevent and protect the
victims of trafficking.

Corruption in Pakistan 

Corruption in Pakistan is widespread, and extends to every sector from government to

judiciary, police, health services and education.
The problems are long-standing, and despite ongoing calls for reform, and many attempts
to improve the situation, there is little evidence of progress. The current government of
Pakistan Tehreek-e-Insaaf (Pakistan Justice Movement) led by cricketer turned politician
Imran Khan vowed to uproot corruption from all sectors. However, there is little success in
bringing accountability across the board. The promise to build a welfare state on the
principle of Riasat-e-Madina (state of Madina) has been enshrined by recent government
but there is little success on practical grounds.

Unprecedented political corruption

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In 2012, Transparency International (TI) calculated that Pakistan had lost more than Rs 8.5
trillion (US$ 94 billion) in corruption, tax evasion and bad governance in the PPP-led
coalition government from 2008 to 2013. However, from 2013 to 2017 while Nawaz
Sharif was in power Transparency International indicated a significant drop in corruption
as Pakistan improved from a score of 28 to 32 in the TI index, even though serious
allegations of corruption were leveled against him during that time. Adil Gillani, an
advisor for TI Pakistan observed that if Pakistan checks the menace of corruption and
ensures good governance, it would not require a single penny from the outside world. The
2008–2013 PPP-led coalition government is criticized as being the most corrupt in the
country's history. The free and powerful local media in Pakistan exposed various cases of
corruption during the government's tenure including cases of bribery and corruption in
government-owned enterprises like Pakistan International Airlines and Pakistan Railways.

Total Recovery made by NAB since its inception (till April 2021) is Rs. 790.483 Billion
     All Amounts are in Billion of Rupees

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Corruption by sector

Judiciary
In 2002, in a report titled "Nature and Extent of Corruption in the Public Sector",
Transparency International (TI) Pakistan reported that the highest amounts of bribery were
spent on people affiliated with the judiciary. Later in 2010, TI Pakistan presented a
breakdown of the various actors in the judicial system involved in corruption. A majority
of the participants reported that they, or someone in their household, has been subjected to
an act of corruption while interacting with someone from the judiciary. When asked of the
actors involved, 33.62% people said court employees, 23.73% said public prosecutors,
14.12% said witnesses, 12.43% said judges, 8.19% said opponent lawyer, 4.52%
said magistrates while 3.39% mentioned others.
In a 2011 survey, TI Pakistan identified judiciary as the most corrupt institution in Pakistan
alongside police. Nevertheless, with the proceedings of some high-impact corruption cases
against government officials, including the prime minister, the Supreme
Court demonstrated its positive role in tackling corruption. Where the apex court was
being hailed for its anti-corruption efforts in 2013, Mehmoodul Hassan, a member of the
Sindh Bar Council, alleged that nepotism and corruption were still "rampant" in the lower
judiciary, particularly high courts and the lower courts, where people were unlawfully
promoted within the judiciary.

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Education
In the 2010, TI Pakistan reported that about 23.7% of those surveyed received admission in
educational institutions through non-normal and alternate procedures. One of the biggest
problems identified in the country is the presence of a non-uniform educational
system. The private sector actively encourages western educational models such as
the General Certificate of Secondary Education using this to justify unaffordable fees they
charge ordinary citizens. Finding gain in such enterprises, the elite class amongst
politicians, technocrats, bureaucrats and businessmen usually capitalize in this venture.
These attitudes can also explain the deteriorating standards in the public sector educational
institutes. On the other hand, state-owned public schools face several challenges including
poor management and governance, and incompetence of consecutive governments in the
education sector. Further factors for failing standards in state-run institutions include lack
of funding, non-utilization by elite classes, appointments of under-qualified faculty.
For a brief time during the regime of Pervez Musharraf, Pakistan received unprecedented
investments in its higher-education sector – this funding faltered with the arrival
of Zardari's government after 2008.In 2011, Dr Syed Abdul Aziz, director of Hamdard
Institute of Education and Social Sciences declared education as one of the most corrupt
sectors in Pakistan. According to 2013 findings by Transparency International, factor that
contribute to this corrupt culture in the sector include embezzlement of development funds
allocated by the government, thousands of ghost schools that appear only on paper, bribes
taken to sell confidential material to candidates, poor or underutilization of funds and an
inertia to change on the behalf of the education ministry.

Health care
In 2010, 42% of surveyed individuals reported gaining access to hospital services by a
method other than standard admission, and 48% reported either having to pay additional
costs for essential services or being forced to utilize the services of a designated affiliate.
Of the respondents who were asked to identify which parties orchestrated the corrupt acts,
61% reported hospital staff, 25% reported doctors, and 13% reported nurses.

Police and law enforcement

Corruption is found to be commonplace in the lower levels of police. Police was observed
as the most corrupt sector in a 2013 survey by Transparency International (TI).This
situation has persisted since the graft watchdog's July 2010 survey, in which it was noted
that the major cause for corruption in this sector was due to a lack of accountability and
merit, and low salaries. Payment of bribes in order to escape and avoid charges was also
commonplace; 31% of 4,224 respondents reported paying bribes to the police. Citizen
journalists upload instances of police officials taking bribes on social networking and
video sharing websites like YouTube.

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Ordinary citizens face challenges in reporting instances of corruption they encounter with
the police. In 2005, Prime Minister Shaukat Aziz ordered an investigation into claims by a
23-year-old woman who alleged that, in retaliation for attempting to reveal police
corruption, police falsely detained her for fifteen days and raped her.
Public utilities
As of 2002, 96% of surveyed individuals reported corruption issues with electrical utility
officials during the past year. The most common types of corruption were billing related.
Some consumers admitted to illegally reducing their utility bills, while others reported
being harassed with inflated bills intended to solicit bribes. Out of the pool of corruption-
affirmative respondents, 71% reported that money was "demanded directly by the actor".

Sports corruption
In August 2010, reporters from News of the World orchestrated a sting operation which
was able to identify three Pakistani cricket players – Salman Butt, Mohammad
Asif and Mohammad Amir – and a bookmaker Mazhar Majeed of being complicit in a row
over spot-fixing in the fourth England-Pakistan test match at Lord's. The cricketers each
received 30 months, one year and six months jail term respectively while the bookmaker
received two years and eight months jail term in a verdict issued by the Southwark Crown
Court on November 3, 2011. Following these events, on 15 November 2011, the chairman
of the Pakistan Cricket Board, Zaka Ashraf established an anti-corruption unit to prevent
players from becoming involved in illegal betting practices. The cricket board has
introduced new anti-corruption laws in order to bring accountability among cricketers and
board officials.

Taxation
According to the 2002 study, 99% of 256 respondents reported facing corruption of
taxation. Furthermore, 32% of respondents reported paying bribes to have their tax
assessment lowered, and nearly 14% reported receiving fictitious tax assessments until a
bribe was paid.

Role of mainstream and social media

Mainstream media
Before 2002, the electronic media was entirely dominated by state-owned institutions like
Pakistan Television Corporation and Pakistan Broadcasting Corporation. This monopoly
was thwarted, when the Musharraf regime regulated the electronic media allowing for
private television channels to be operated independently. Since the liberalization of the
electronic media in 2002, it has served as a major force in exposing corruption-related
cases and scams.

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Following are a few of the major corruption scams and scandals reported and exposed in
the mainstream Pakistani media:

Rental Power Projects (RPP) scam:

In 2006, the media reported on a case involving several instances of bribery in the Rental
Power Projects (RPP) where top-level ministers were involved. Former prime minister
Raja Pervez Ashraf was also allegedly involved in these cases of corruption but was later
cleared by the NAB. His involvement in this case earned him the nickname "Raja Rental".

PMDC fake registrations:

In 2010, Dr Ahmad Nadeem Akbar, Registrar of the Pakistan Medical and Dental Council
had cancelled fake registrations done by some PM&DC officials and had dismissed them
from service as they were found to issuing fake registration of medical professionals,
allowing for inexperienced personnel to take up important positions in medicine and play
with lives of public. The Islamabad High Court in July 2014 and earlier the Supreme Court
had upheld his actions and have ordered high power inquiries by NAB in this regard
against culprits nominated by Dr Ahmad Nadeem Akbar Once this negligence was
reported in the media, the Anti-corruption and Crime Wing of the Federal Investigation
Agency took action and identified fake registrations for 40 doctors and 19 medical
colleges. The case of registration of 19 medical colleges in one day was investigated by
Honourable Justice Shabbar Raza Rizvi and report points towards corruption by the
PM&DC Executive Committee member Dr Asim Hussain and Prof Massod Hameed Khan
and the employees of the Federal Ministry. As of 2013, FIA had identified about 150
probable instances of fake registrations.

Mismanagement of state-owned institutions:

Pakistan's flagship airline Pakistan International Airlines (PIA) was reported to have been
mismanagement by the executive authorities giving rise to a corrupt culture of bribery.
Corruption in PIA led to losses of around US$ 500 million. Similarly, massive financial
losses were reported for Pakistan Railways caused by embezzlement.

Hajj corruption case:

Media reported on an ongoing corruption scandal involving federal ministers extorting
illegal payouts from travel agents involved in fleecing Hajj pilgrims to Saudi Arabia. The
Minister of Science and Technology, Azam Khan Swati, identified and named the Minister
of Religious Affairs, Hamid Saeed Kazmi, as being responsible for giving out these illegal
orders. He revealed that he had already warned the prime minister about the scandal
thereby making several leading members of the parliament accessory to these criminal
offences.

OGRA scam:

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One Adnan Khwaja brother-in-law of PPP Secretary-General Punjab was appointed as

Chairman who was instrumental in the scam. The OGRA scam case is sub-judice and the
ex-Chairman is being prosecuted but at snails's pace.

NATO containers case:

Media reported on 40 NATO containers that went missing on their way to the
International Security Assistance Force (ISAF) in Afghanistan. It was later identified that
the missing containers carried cargo that was considered contraband in Pakistan, including
liquor to be sold in Pakistan.

Pakistan Steel Mills scam:

The mainstream media reported a major scam in the Pakistan Steel Mills involving Rs 26.5
billion. Once the scam was reported, the FIA initially took action but their progress turned
sluggish due to which the Supreme Court issued a contempt of court notice to the interior
minister Rehman Malik for hindering and interfering with the investigation.

NICL corruption case:

The National Insurance Company Limited scandal was first reported in the media in 2012
involving the purchase of 10 acres of land in Karachi by the company at "an exorbitant
price" and the transfer of millions of rupees from the account of Zafar Salim, a cousin of
the land seller Khwaja Akbar Butt into the joint accounts of Makhdoom Muhammad
Ameen Faheem, his wife and his son.

Ephedrine quota case:

The Ephedrine quote case was a scandal involving Prime Minister Yousaf Raza Gillani's
son, Ali Musa Gillani, who pressure officials of the Ministry of Health into allocating a
quota (worth Rs 70 billion) of controlled chemical ephedrine to two different Multan-
based pharmaceutical companies.

The mediagate scandal:

It was reported that Chief Justice of Pakistan Iftikhar Muhammad Chaudhry's son had
allegedly taken money from Malik Riaz Hussain, a real-estate tycoon, to persuade courts to
give decisions in favour of the latter. Renowned columnist and anchorperson Javed
Chaudhry observed that the case against Malik Riaz proved that the media can hold itself
and the judiciary accountable. He further added that this case along with the case for
missing persons effectively establish the credibility and impartiality of media's fight
against corruption.

Institutional Framework
Most prominent ACIAs working at the federal and provincial level in Pakistan are:

National Accountability Bureau

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NAB is headed by a Chairman, who is appointed by the President in consultation with the
Leader of the House and the Leader of the Opposition in the National Assembly for a
nonexpendable period of four years. He cannot be removed earlier except on the grounds
provided for the removal of Judge of Supreme Court of Pakistan. The Chairman is assisted
by a Deputy Chairman, Prosecutor General Accountability (PGA), and Director Generals.
PGA and Deputy Chairman are also appointed by President of Pakistan in consultation
with Chairman NAB for a non-extendable period of three years.
Functionally, NAB is organized into Operations, Prosecution, Awareness and Prevention,
Human Resource Management and Headquarter Divisions; each headed by a Director
General. Under these Divisions, there are dedicated ‘Wings’ dealing with Identification
and Intelligence, Investigation and Monitoring, Prosecution, Overseas Operation, Research
and Analysis, Training and Forensics. NAB has seven regional offices in Karachi, Lahore,
Peshawar, Quetta, Rawalpindi, Multan and Sukkur, each headed by a Director General.
NAB Employees Terms and Conditions of Services (TCS) 2002, Methods of
Appointments and Qualifications 2002 and Code of Conduct for Employees govern the
appointments, transfers, promotions, discipline and conduct of employees.

Federal Investigation Agency

FIA is headed by a Director General, a BPS 21/22 officer, traditionally from Police Service
of Pakistan. Administratively, there are two regions headed by Additional Director General
and seven zones each headed by a Director. Each zone comprises of sub-units called
circles. Each circle is headed by Deputy Director and deals with an exclusive set of crimes
such as human trafficking, cyber-crimes, banking crimes, corporate crimes and corruption
related crimes. With the emergence of NAB, as a premier anti-corruption agency, FIA’s
anticorruption role got restricted to border control functions, human trafficking and
cybercrime.
FIA has 115 sections of PPC & 33 special laws on its Schedule of offences including the
Prevention of Corruption Act, 1947. Preamble of FIA Act 1974 limits its jurisdiction to the
matters connected to Federal government departments, organizations and corporations.

Anti-Corruption Establishment (ACE).

Provincial ACEs are headed either by a Chairman (in Sindh), a Director General (in Punjab
and Balochistan) or a Director (in KP), generally from civil service, police or a retired
army officer. Each district has an anti-corruption office headed by a Deputy Director
called Circle In-charge. In Balochistan, ACE earlier worked under a DIG/SSP; however a
separate directorate was established in 2010, with Secretary Services & General
Administration Department (S&GAD) as its Ex-Officio Director General.
ACEs have jurisdiction over employees of the departments, organization and corporations
set up by the provincial governments.

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Table-: Comparative Analysis of Institutional Capacity of Anti-

Corruption Investigative Agencies
Capacity Agency
Parameters
NAB FIA ACEs
Budget Rs. 5.1 billion for Rs. 4.9 billion in
FY FY 2020-21 Rs. 2.7 billion in FY
2020-21. 2019-20

Human Total posts 2,465 Total posts 6,871 Total posts 2,778
Resource
Training Has a dedicated Has a basic Have specialized
Training & training facility training facilities.
Research Division which in Reliance on police
and a Training collaboration with training institutes.
Academy. Seven national and Resultantly, officers
international
months Special generally lack
ACIA regularly
Training Course for required level of
imparts induction
fresh inductees and skills for
and in-service
on job training investigation of
training. A state of
courses for in corruption cases.
art training facility
service officers.
is required.
Internal An Intelligence and A Performance There are
Accountability Vigilance Cell and Internal no
Mechanism monitors and special
Accountability
investigates all Bureau (PIAB)mechanisms for
complaints against investigates vigilance and
NAB officers and complaints internal
proceeds under Against investigations
FIA
NAO, if they are officers. Against ACE
The
effectivenessofficers.
of
alleged of corrupt
this mechanism
Complaints of
practices. Level of
Requires corrupt practices
effectiveness can be
improvement. are enquired under
further enhanced.
ordinary,
often
cumbersome,
general disciplinary
rules.
Inspection, There is Inspections form An elaborate
Monitoring and an an important part inspection,
Evaluation elaborate of FIA Monitoring
System inspection, management and
Monitoring and functions, evaluation system
evaluation system. however, a does not exist as
Since 2019, a dedicated unit such in ACEs.
dedicated

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Capacity Agency
Parameters
NAB FIA ACEs
Monitoring and Does not exis
Evaluation Team presently. t
is working.
Prosecution Statutory post of Presently, The
Prosecutor the
General and number of legal prosecution
Prosecution officers is function is weak
Division exists in inadequate with few
NAB. and Law
dedicated and
Robust system of officers are
well qualified
prosecution and overburdened.
Under prosecutors
representation in
restructuring available.
courts in place.
Plan law wing
being revamped.
Forensic A well-resourced Forensic facility ACEs don’t have
Capacity Forensic Science needs massive their independent
Laboratory exists revamping and forensic facilities
in NAB to support modernization. and rely on other
investigation and However, in forensic analysis
prosecution. digital forensics facilities in the
FIA is still the provinces.
lead agency.
Use of IT Use of IT quite Most of work still In the ACE
prevalent in NAB being done Punjab, an IT
for maintaining manually. based complaint
data basis, However, IT and case
complaints and being embraced management
case management at fast pace by
system has been
system, HR and FIA in office
performance developed but
management,
evaluation system. cases improvements are
Management and needed in terms of
HRM. data management,
protection and
assessment. Other
ACEs lag behind
Punjab in this
area.
Research The Research & Dedicated There is presently
and Analysis Unit Research & no provision for
Analysis exists in NAB but Analysis does not research and
few independent exist presently in analysis in ACEs
research studies FIA. However, except for the
conducted.
under Punjab, where an
restructuring R& D section
plan it is being exists under a
Director

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Capacity Agency
Parameters
NAB FIA ACEs
Established.
(R&D) but remains
poorly equipped
and understaffed.
Public NAB also uses FIA has a website Overall, limited
outreach social media, which shares some outreach and less
including the information about emphasis on
website for sharing FIA’s prevention and
information about activities, awareness.
its activities, inquiries,
inquiries, Recoveries and Only Punjab’s ACE
Recoveries, cases. Use of social has its website
and cases. media to which contains
propagate its guidelines and
NAB has a strong outreach information about
public outreach Activities is complaint
system, with a limited. handling, enquiry,
substantial part of case registration,
There is very little
NAB’s budget trap raids
focus on public
earmarked for procedures.
outreach for
public outreach prevention and
under its Education Other ACEs have
Prevention, purposes. just Facebook
Education and pages.
outreach mandate.

Character Building
Societies (CBS)
programs are also
there.
Timelines for NAB provides FIA has three ACE does not have
disposal of maximum limit of months limit for specific timeline
enquiries and 10 months- from finalizing enquiry for completion of
investigations complaint and 6 months for verification or
verification-to case proceedings. enquiry of a
inquiry-to These limits are complaint except
investigation extendable for the
and finally multiple times by investigation of
to a Different registered cases as
reference in authorities. mandated by the
the Original Cr.PC.
Accountability time
Court. Adherence limits are
to time limit not in generally
all cases. not
observed.
Capacity Agency

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Parameters NAB FIA ACEs

International Enabled by NAO FIA, being foc
Cooperation provisions NAB point for al Due to their
has been Interpol, provincial nature,
cooperating in receives, nd ACEs have to
mutual legal s, approach the
se
assistance matters an Federal
processes
with other d Government for
countries under responds to any mutual legal
bilateral MoUs as requests for
assistance request
well as United exchange of
to a foreign
Nations criminal
an jurisdiction.
Convention information
against mutual d
Corruption assistance.
(UNCAC).
Annual Submits an FIA issues Annual reports
Administratio Annual Report to an are not publicly
n the Annual available and lack
Report President Administration quality and
each year Report which is Comprehensive
which is available on FIA’s data.
available on NAB Website.
website.

Research Methodology

Qualitative research method has been utilized for this study. The study is based on both
primary and secondary source material. The primary source materials include; government
documents, handouts, Constitution of 1973, Constitutional Amendments, text of the NFC
Award and other official documents and statements. The secondary sources include books,
research journals, periodicals, reports, encyclopedias, newspapers and internet material.
Both primary and secondary source material has been used in the dissertation to
understand the whole extent of this Research Proposal.

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