I am talking about the pak stock market crash of 2005; the crash investigation has been bogged down by cover ups by the government and allegations of obstruction right at the very top of the present military government. NAB hasnt touched it, and the poor investors have lost huge sums of their earnings.
Re: The biggest corruption scandal in Pak history?
This biggest corruption scandal has been recently reported by one of yours beloved MMA bloke , Laiquat Baloch , according to him , President General Pervez Musharraf had bought a house in Istanbul.
Some one was telling me it cost around 363 million .
A cock and bull story?
I say Musharraff should sue him for personal defamation !
Re: The biggest corruption scandal in Pak history?
actually, the crash was investigated by a u.s. firm. if anyone suspects foul play, the firm can be taken to court in the u.s. which has very specific legislation against u.s. firms taking or paying bribes. people who are confident of their case can win a lot of money in damages if they can prove their case in court.
as for the real reason for crash, that was due to incompetence of the head of s.e.c.p who closed down badla without putting alternate financing lines. as soon as the problem was fixed, the market bounced back and investors made much much more than they lost.
http://www.dawn.com/2006/11/22/ebr3.htm
Investigators rule out collective manipulation: Stock market crash
By Dilawar Hussain
KARACHI, Nov 21: The much-awaited forensic investigation report on the stock market crash of March 2005, which was placed by the Securities and Exchange Commission of Pakistan (SEC) before the parliament’s standing committee on finance on Tuesday, categorically stated that the investigators “did not find sufficient evidence” which could prove that “certain influential brokers systematically and manipulatively inflated and then deflated market prices, reaping profits in the process”.
Investors who may have been looking forward to the uncovering of names of high profile officials of the ministry of finance along with big brokers’ involvement in March 2005 stock crisis, could not have been more thoroughly disappointed. It was Dr Tariq Hasan, the then chairman of the SECP, who had stirred the hornets nest by pointing accusing finger at people in high places as major beneficiaries, which had made even President Musharraf very cross.
“It is this man Tariq Hasan alone who is responsible for the stock crisis, for what was he doing as the chief of the apex regulatory body,” the president had thundered in a televised interview. In order to dispel those allegations, the US forensic investigators had been called in and dig out the truth.
When asked by Dawn on Tuesday of what he thought of the forensic report, the sacked chairman of SECP, Tariq Hasan, responded: “Justice for the rich.”
The 161-page report – to which 67 pages were added later – made the stunning statement that the findings of forensic investigators “greatly differed from findings of the task force (which was set up soon after the March crisis), basic being that potential wrongdoing by individuals may be there but no collective manipulation”.
US firm, Diligence, which claims to provide services to Fortune-500 companies, besides other high profile clients worldwide, had been commissioned by the SECP in July 2006 at an estimated fee of $1 million to dig deeper into the March 2005 crash, which had seen 25 per cent of the market value evaporated in just eight sessions, with the KSE-100 index plunging from 10,303 on March 15 to 7,708 on March 28.
The report of the forensic investigators underlined the main subject of the report as “manipulation by major market players causes and whether manipulation or wrongdoing had contributed to widespread financial losses”.
Much to the chagrin of the opposition in the assembly and half of the market, the answer of the investigators was a simple: “No”. Yasin Lakhani, former chairman of the KSE, expressed his disappointment, saying that the motto of the investigators seemed to be: “See no evil, hear no evil and report no evil.”
But another major broker, who asked not to be named, said he would side with the spies: “If there was nothing wrong, what could anyone find?” He thought that the view of opponents was to push stock brokers in the dock and declare them as ‘guilty unless proved innocent’. He, however, conceded that a large number of brokers had taken future position in March 2005 contracts above the permissible limit of Rs50 million, but he argued that it had to be seen if the broker held deliveries or were they ‘blank sales’. “In case of the latter, the participants could be penalised, but not otherwise.”
An analyst said that the penalty for violation of Sec 17, which deals with the above, is Rs30,000.
Six of the seven parts of the report delves entirely on the ‘carryover transactions or badla’. And in looking for the clues, the report admitted of “inconsistent and often incomplete nature of trading in related records and information provided to Diligence”.
The investigators did not quantify the losses arising out of the crisis, but did express the grievance: “We are sensitive to the fact that many investors may have lost ‘significant sum’ in the KSE crash of March 2005,” they stated in the report and went on to suggest that risks and rewards were part of the game of high finance in stocks.
Re: The biggest corruption scandal in Pak history?
Oh the black monday of KSE !
Re: The biggest corruption scandal in Pak history?
Dag-gon it! King Faisal why you had to burst Zakk’s bubble so quickly? Poor lad needed some traction for his KaON-Shi-Phay-Raisy theory.
Good read though!
Thanks.
Re: The biggest corruption scandal in Pak history?
was the disapperance of phoren currency accounts by wadi tind abaji and company.
Re: The biggest corruption scandal in Pak history?
was the disapperance of phoren currency accounts by wadi tind abaji and company.
For once I agree with you
Re: The biggest corruption scandal in Pak history?
Steel mills privatization I think was the biggest scandal in Pakistan's history. Thanks to SC's timely intervention it was blocked. Sadly, no one has been held accountable for it yet...
Re: The biggest corruption scandal in Pak history?
Indeed it was one of teh biggest scandals when small investors lost 13 billion dollars. However since the issue is often discussed only in business or financial news which only few people listen to, the scandal did not receive much attention.
We will only know the real story once the existing government is replaced by another one.
The former chairman of SEC, Dr Tariq Hassan pointed finger at people close to PM.
Re: The biggest corruption scandal in Pak history?
Dag-gon it! King Faisal why you had to burst Zakk's bubble so quickly? Poor lad needed some traction for his KaON-Shi-Phay-Raisy theory.
lol. Maybe they want the CJ to look into this as soon as he has sorted out the traffic jam issues in Karachi. :D
Re: The biggest corruption scandal in Pak history?
oh wait..I was under the impression that the investigators couldn't reach a conclusive decision becuz the SECP withheld data after it's previous chief was kicked out when he volunteered to help the investigative team. hmmm
chalo. One less reason to doubt the morality of Shauky baba.
Re: The biggest corruption scandal in Pak history?
what about moral corruption in all governments we have seen? BB's Mr 10%, NS's changing import duties whenever his friend's/colleagues consignment arrived at the port? Yellow Taxi? Super highway? Attacking of court? Exporting sugar when prices in country were rising? Export then reimport of onions? Export of energy to India when Karachi faces load-shedding? as they say "is hammam mai sab hi nangay hayn", each and every person who has been/is in government has shown corruption at almost all levels.
Re: The biggest corruption scandal in Pak history?
^Agree with that, Is hammaam maiN aik sey barh ker aik Nanga hai
Re: The biggest corruption scandal in Pak history?
what about moral corruption in all governments we have seen? BB's Mr 10%, NS's changing import duties whenever his friend's/colleagues consignment arrived at the port? Yellow Taxi? Super highway? Attacking of court? Exporting sugar when prices in country were rising? Export then reimport of onions? Export of energy to India when Karachi faces load-shedding? as they say "is hammam mai sab hi nangay hayn", each and every person who has been/is in government has shown corruption at almost all levels.
true but in financial terms the stock market could be the biggest one in pakistans history.
Re: The biggest corruption scandal in Pak history?
Daily Jang reports that Etisalat, winning bidder of PTCL and ufone, refused to pay the due amount and therefore Pakistani Government made another deal with Etisalat and secretly gave them discount of 400 Million Dollars.
Re: The biggest corruption scandal in Pak history?
Is it really true that energy is exported to India? That's truly amazing - then why not just normalize relations and stop with the conflicts and arms race? Does it make any sense providing energy that powers the communications and weapons of India that are probably killing the soldiers of Pakistan?
Avoiding this hypocracy will save lives and billions