USMAN KARIM
First, the military has become predatory engaging in political and economic predation. Second, political predation is not complete without economic predation. Third, military has mutated into a separate class that shares interests with other members of the ruling elite. Finally, because the military protects its vested interests, it leads to alienation of the masses. It dates back to the early 1950s. The business ventures were started with the establishing of the first foundation called the Fauji Foundation in 1953. This was established with the war veteran’s rehabilitation fund of Rs. 18 million you have to understand the concept. A politically strong entity that engages in political predation needs to feel economically or financially autonomous. This completes the picture of predation. The generals thought that they wanted to establish independent means of providing for their welfare and not depending on the civilians like it happened in India. The financial autonomy gradually created the logic for greater interest in political control. It started right then with Ayub Khan and his cabal getting agricultural land and establishing independent means for themselves. Look at Ayub Khan. He not only got several squares of agricultural land in Sindh, he also established his sons into business. Look at the entire lot of generals at the moment. A Major General has a legal worth of about Rs. 300 million [Rs. 30 crores]. These are conservative estimates.
Question: Going back to Pakistan army’s economic superpower…What percentage of the GDP and GNP is it?
This is difficult to calculate but their own estimates are about 4 % of GDP. I would say that their share in private sector assets is about 7-10 percent of private sector assets. This is a large number for any single group.
Question: Can you translate that into crores?
7-10 percent of private sector assets cannot be translated but I can give you another figure: They are worth about Rs. 200 billion. It is just the business. If you put in real estate then we are talking about a Rs 1 trillion plus economy.
Question: You mean Pakistan army’s side economy?
Yes. This includes real estate, businesses done by subsidiaries, organizations and individuals. You have to understand that this economy is predatory by nature because it does not accept any form of civilian control over it. It is independent in terms of planning, appropriation of funds, etc.
Question: If Pakistan army’s assets total Rs 1 trillion can they fund Pakistan?s annual budget wholly or partially if they have to?
This would, converting these resources into liquid assets and then it would be possible to pay. A lot of these resources are state resources that could provide for military expenditure and more. It is difficult to say that this money would fund the entire budget. Of course, it can but over what period? These assets were acquired over time and their value should be added to the annual defence budget.
This would, converting these resources into liquid assets and then it would be possible to pay. A lot of these resources are state resources that could provide for military expenditure and more. It is difficult to say that this money would fund the entire budget. Of course, it can but over what period? These assets were acquired over time and their value should be added to the annual defence budget.
Question: What was the defence budget for the year 2001?
131 billion. If you add these numbers the budget would escalate to over Rs. 400 billion
Question: in 2001 how many generals, etc were there who form the command structure of Pakistan forces?
Brigadier and up would be a few hundred.
Question: So if we assume 100 then 100 times 300 million = 30 billion is the legal worth of army’s command structure correct?
it is more but don’t get into these fancy numbers… Plus the higher you go the more pricy you become. A full general is worth Rs 500 million [Rs. 50 crores] plus
Question: How much land does the forces own in each province?
Difficult to bifurcate but to give you a taste - they own about 7-9 million acres in Punjab alone
Question: What percentage is it of whole of Punjab?
I am still trying to figure this out. It is not an issue of what percentage is this of Punjab but that one group appropriates a major portion of state land
Question: What about Sindh?
My sense is that it is less in Sindh
Question: Why is that?
Most of the land is around the 2 barrages constructed after independence. Because they didn’t make new barrages.
Question: What is their modus ope***** in getting these lands allotment
10 % of land, according to the 1912 Colonization of Land Act, is allotted to the military
Question: 10% everywhere?
Yes it would be everywhere land is found. Colonization of land refers to each land reclaimed due to creation of water channels and other irrigation projects. However, they tend to get more in Punjab
Question: Does India have this act too?
No. They got rid of such acts when they did land reforms. Remember India is a state moving towards capitalism. A capitalist state would not create means for institutionalizing feudalism
Question: Are you saying Pakistan army has institutionalized feudalism?
I am saying that it is a feudal institution as well
Question: So in that case their interests converge with feudal system correct?
Yes
Question: Do you think they resisted land reform along with the feudal?
I wouldn’t say that they resisted but they had sufficient stakes not to pursue a policy that had a negative impact on their benefits. For example, who buys the land the Faujis sell? The local feudal or the new rural capitalist class that is equally feudal in nature. Why should the officers then try to destroy the class that bails them out financially? After 1999, generals have started to keep their lands
Question: What happened after 1999
Since the value of land has gone up, especially after 9/11, generals now keep lands and have turned into absentee landlords
Question: Why did the value of land in Pakistan go up after 9/11?
Because of the money that started to flow in from Pakistani expatriates plus other Muslim countries
Question: What is their modus ope***** in getting these lands allotted to generals individually and to their housing societies collectively?
The provincial governments allot the land to the Ministry of Defence who then gives the land to the three services for further dispersal. The land is also given to the Jawans but the quantity is lesser than what is given to the senior officers. Plus, the generals get greater facilities in making the land cultivable.
Question: All this is based on 1912 colonization of land act that India got rid of and Pakistan still has?
Yes, but they have done alterations as well. For instance, the act does not say that land meant for operational purpose be appropriated for personal use. It is against the law
Question: Are you saying that land meant for operational purposes are or have been appropriated to the generals for personal use or to the housing societies?
Of course. All land in the cities is military land turned into housing colonies
Simple:
At what value does the army buy land?
Between Rs. 30-60 per acre. In some cases they pay more. This refers to the private housing schemes
Defence Society in Karachi, the army gets land from the provincial govt for 30 to 60 rupees an acre only?
There are 2 methods for getting land. All the military land converted for personal use is given at the ridiculous price I quoted. Then there are other schemes where they pay a little more. For instance, the Cantonment Board distributed plots of 500 yards each by appropriating part of the parking lot of the Karachi stadium. Each plot was for about Rs 600,000
What was the fair market value of each plot at that time?
One and a half crore
Who got these plots?
Generals. The bulk goes to generals. General Tauqeer Zia did this. As Chairman Cricket Control Board he authorized himself to return this land that once belonged to the Cantonment Board for further distribution
Any more instances of such land grabbing?
The entire Lahore Cantonment was turned into housing schemes. In fact, except for Defence phase I & II (Lahore), the rest of the land does not even belong to the military just park view housing scheme grabbed by information Minster aleem khan in Lahore next to new allam iqbal international air port is just tip of ice berg
How many acres is Lahore Cantonment, if you know?
About 8000 to 10,000.acres land
What is its fair market worth now?
Runs into billions. It should be around Rs. 700 billion
What was the "grabbing price??
, Rs. 30-60. This is the rate that officers pay.
What is the conclusion of this article?
Simple: The political leadership in Pakistan has to negotiate the military’s gradual withdrawal from the economy if they want democratic institutions to grow. Once at a press conference Sardar Attaullah Mengal declared that while the military regime constantly lambasted the Baloch sardars like him and sardar akbar bughti late what, s difference between him and army for cornering the wealth of Balochistan, he would gladly swap all his assets with those of any general any time, any day.
I finally realise what Mengal was getting at. It soon becomes very obvious that most of us have opted for the wrong career. If a banker friend of mine is right, then the highest paid salaried civilian is one Farooq Bengali, currently heading some Arab bank based in Karachi. Bengali?s annual salary package is rumoured to be in the range of Rs. 3 crores per annum. Considering it took Farooq Bengali years of much lower salaries to get there and the fact he?ll mostly likely get this kind of salary for eight years at the very most ? the maximum he can hope to accumulate in his lifetime is Rs 30 crores. This sum equals, , an average major general?s net worth. There must be a few dozen of major generals around at any given time, so there ought to much great scope in getting there; after all there is only job available like Farooq Bengali?s, and he is currently occupying it. Besides, once Farooq Bengali retires he goes home. The same doesn?t apply to our retired generals; they can become provincial governors, federal ministers, ambassadors, and heads of one of the numerous Fauji conglomerates or even be in a position to mismanage the Pakistan Cricket Board. Now that is what a richly rewarding career is all about? Every second freaking plot in Islamabad was initially allotted to a service man. Our army is a off-shoot of British army and are still not able to get out of the imperialistic ways. Please get real and stop this crap where you guys try to make the military some sort of holy institution. We need our country back from you! Please leave our land and go back to your barracks and we will call you when you are neededAbout 7-9 million acres in Punjab alone hold by Pakistan army General Pervez Musharraf cannot, and does not, publicly claim that he has eliminated corruption altogether in Pakistan but he frequently boasts about cleaning up the top levels of his military cum civil administration. Now his own trusted men are exposing these tall claims by pointing fingers and naming the military regime?s big guns that are turning out to be the really big thieves. A few most glaring examples: When a prominent cabinet minister who was visiting Washington a few months back, revealed quietly to me and a friend, the horrifyingly ugly scale of land grabbing and fake land sale scams going on in Pakistan, especially in Punjab, we frankly did not believe him. We thought the minister was trying to get even with his uniformed masters for not fulfilling the tall political promises made to him. But the magnitude of the scams was such that the minister genuinely felt concerned and wanted us to write about them, although as a politician he was not going to raise his voice publicly and was prepared to serve those very Generals in every top position. The minister has now been proved right. Thanks to one of the more upright Generals in the past lot, the Corps Commander of Lahore, Lt. General Shahid Aziz, details of the massive land scams are emerging. Our ministerial source says Corps Commander Aziz, has started a serious investigation against his predecessor, the last Corps Commander of Lahore, currently posted in the GHQ, Lt. General Zarrar Azim, known in the real estate world of Lahore as General Zarrar Zamin (land). And now DG RANGER HUSSIAN MEHDI IS HEAD OF LAND GRABBER IN LAHORE CHIEF MINSTER AND GOVERNOR TOO WORK ALL POST ONCE Early results of this fight between the top military bulls has revealed that General Zarrar was so deeply involved in the scam of Lahore Defence Society that in the price of every plot of land allotted in the society, a fee of Rs 600,000 (US$10,000) had to be built-in, almost automatically, meant for the Corps Commander?s office. In this scam, it is now being found by the detectives of the new Corps Commander, that not only the out-going CC was involved; he was using a junior officer, Major Lodi as a front man. This major is related to General Musharraf?s coup partner and now retired General Aziz of Kargil fame. The details of these Defence Society scams are mind-boggling. Thousands of plots of lands are designated in official files as Defence Society land and these plots are then sold and re-sold on files. More paper Housing Societies are registered and approved and they claim vast tracts of land without owning a square yard. According to our source, in Lahore alone there are 12,000 files of plots for Sectors 7, 8, 9 and 10 for which there is no land actually available on the ground. How many thousands of more such plots have been sold is not yet known but the probe ordered by Lt. Gen. Aziz will bring out some facts. According to a going joke in the Army Mess Circuit, the last request General Musharraf made to Indian Prime Minister Manmohan Singh in Delhi was to give him 8,000 acres of land from the Indian territory across the Wagah-Atari border, 30 miles from Lahore, in return for Kashmir and Siachin, because ?my boys have already sold this land in the files.?Lahore is not the only Land of Land Scams. What has happened in Gwadar and Rawalpindi is of no less import. The ministerial source said in the Bahria Town of Rawalpindi and Lahore, the scheme managers have sold thousands of non-existent plots. In Bahria Town of Lahore for 7,000 available plots 28,000 applications were accepted with deposits. But in Bahria Town Islamabad/Rawalpindi 77,000 plots have been sold which require land equivalent to 16 built-up sectors of Islamabad.?What we are getting into is the Mother of all Scams because billions upon billions of people?s money has been collected by these project sponsors while there is no land to be allotted. How many of these buyers get back their deposits and when, is the 50 billion rupees question,? the source said. Incidentally official records of the Ministry of Defence presented before the National Assembly show that Pakistan Army has Defence Housing Societies in Karachi, Lahore and Islamabad on an area of only 179,308 Kanals, or 22,500 acres. Pakistan Navy and Air Force have two housing societies each covering an area of 712 and 536 acres of land respectively. Another of Musharraf?s top commanders, Lt Gen. Tariq Wasim Ghazi, former Corps Commander of Karachi became notoriously famous in Karachi for similar land scams in Defence Society, Karachi, including Creek City and allotment to two special people, Humayun Butt and Fareed Veerani. Who are these specials and what is their involvement is being investigated by South Asia Tribune and will be revealed soon.The Gwadar land scam has already infuriated the Baloch leadership and one reason why they are so violent and non-compromising is how their mother land is being sold and resold to outsiders after it was fraudulently bought from them for peanuts. In Gwadar the Generals and their front men were quietly told to buy the land from locals much in advance of announcement of mega projects. Once this mopping up operation was completed, the projects were announced and trading of this real estate began, multiplying the prices by 20 or even 40 times. The ministerial source said the bigger scandal in Gwadar has started just recently when Government has ordered all its banks and State-owned Corporations to buy land in Gwadar at market prices. Middlemen have already sold and resold these plots many times over to different parties to perk up the market price. ?The tax payer will now end up paying the premium to these land mafias,? the source said.what,s happen when ex chief justice of Pakistan iftkhar muhmmad chudary cannceld all the land given to army in gawadar he is send home because army land cartel don?t forgive his enemy bcoz the biggest cartel is army in paksitan In a much quieter operation in Lahore the City Government of Nazim (Mayor) Mian Amer Mahmood head of land mafia in Lahore claimed on Sunday, April 24, that it had succeeded in vacating 3,000 kanals (375 acres) of land belonging to schools from a land mafia, but interestingly he did not name the mafia. Most of those who read the small story or who were present when the announcement was made understood who was involved. Because he is the boss of Lahore land grabbing mafia with chaudry sujhat hussian President of ruling party younger brother chuadry wajhat hussian (MNA) and chief minister son Monish ellahi is 2nd in command While Corps Commanders of Musharraf are involved in perpetuating or dismantling these land scams, one of his pillars of accountability, the former head of the National Accountability Bureau (NAB), Lt. General (Retd) Amjad Hussain was himself accused of massive corruption in the corporation he has been heading. This charge of corruption was leveled in the National Assembly of Pakistan and involved the Fauji Foundation, undeniably the largest corporate body of Pakistan, now waiting to take over the largest public sector company, Pakistan State Oil. The National Assembly was told last week that a high-level inquiry had been ordered against the management of the Fauji Foundation after detection of huge financial bungling. General Amjad was facing the inquiry for selling a sugar mills in a non-transparent manner at less than the highest bid to a business enterprise, which did not even participate, in the bidding process. The Assembly was told that the Khoski Sugar Mills was sold at Rs300 million against a previous bid of Rs387 million offered by a private party. Defence Minister Rao Sikandar ordered the inquiry to fix responsibility on those who violated the financial procedures and rules by going out of the way to benefit a favorite firm. While the above details show that in-service Generals and Corps Commanders were being investigated for corruption, another officially announced corruption case was against the management of the South Asian Federation (SAF) Games, interestingly consisting of all military officers headed by Lt. General Arif Hassan.The management of SAF Games has been found involved in financial irregularities to the tune of Rs201 million, which among other charges, include giving undue benefit to private organizations through “verbal agreements,” Daily Dawn said quoting an audit report . The ninth SAF Games management included Chairman Lt. Gen. Arif Hassan, Chief of staff and chief coordinating officer Brig. Amjad Javaid, Information and media director Lt. Col. Syed Mujtaba Tirmizi, Administration Director Brig. Ahmad Riza Siddiqi, Communications Director Brig Abid Hussain Bhatti, Technical Director Lt. Col. (retired) Muhammad Yahya, Procurement Director Lt. Col. Mansoor Abbas, Information Technology Director Lt. Col. Umer Farooq, Finance and Marketing Director Lt. Col. Azhar Dean, Ceremonies Director Brig. Arif Rasul Qureshi, Protocol Director Brig. Khalid Rasheed Lodhi and Chief Engineer Lt. Col. Usman Saeed.
10 % of land, according to the 1912 Colonization of Land Act, is allotted to the military JUDICARY SO MUCH SCARED TO HEAR THE CASE AGAINST ARMY GERNALS CORRUPTION The Lahore High Court in Pakistan is facing a legal and a practical dilemma: What to do with the petition which charge sheets the Pakistan Armed forces and lists details of massive kickbacks and corruption done by Generals, Air Marshals and Admirals. The petition has been filed by a lawyer in public interest but its contents are so explosive, the High Court Judges cannot touch it. The LHC, under tremendous pressure of the Army regime, is almost helpless in even admitting or hearing the petition, let alone give a verdict against the Army. The main charges mentioned in the petition include: - Air Chief Marshal Abbas Khattak (retired) had received Rs180 million as kickbacks in the purchase of 40 old Mirage fighters - Air Chief Marshal, Farooq Feroz Khan was suspected of receiving a five per cent commission on the purchase of 40 F-7 planes worth $271 million - In 1996, the Army bought 1,047 GS-90s jeeps, at a cost of $20,889 per unit. The market value of a jeep then was only $13,000. According to the National Accountability Bureau (NAB), Pakistan?s main accountability organization, some senior Army officers made Rs. 510 million in the deal. - One hundred and eleven Army men got 400 plots in Bahawalpur and Rahimyar Khan districts at throwaway prices, paying Rs. 47.50 per kanal (1/8th of a acre) as against the actual price of Rs15,000 to Rs20,000 (1US$=Rs. 56). Another 35,000 kanals were distributed among them. - Six respondents got 400 kanals in the Punjab while former NAB chairman Lt. Gen Mohammad Amjad was allotted a two-kanal plot on the Sarwar Road in Lahore for just Rs. 800,000 - payable in installments over 20 years. The market value of this plot was Rs. 20 million. - General Pervez Musharraf acquired a commercial plot worth Rs 20 million at DHA in Lahore for just Rs. 100,000, payable in 20 years. “As mentioned in the report of defense services director-general, a loss of Rs 5 billion was incurred due to such allotments.” - The Army awarded a contract for the purchase of 1,000 Hino trucks at $40,000 per unit while the local Gandhara Industries had offered trucks of the same specification for $25,000 a piece. In the purchase of 3,000 Land Rover jeeps in 1995, Army officials allegedly received around Rs. 2 billion as kickbacks. - The Army management at WAPDA raised the power tariff 13 times during the last three years besides purchasing electric meters at Rs. 1,050 a piece against the open market price of Rs. 456, causing a loss of Rs 1.65 billion to the national exchequer. - A former military regime sold the Pak-Saudi Fertilizers for Rs. 7 billion and earned a Rs 2 billion commission on the deal. - In 1996, the Pakistan Navy spent Rs. 13 million on installing air-conditioners at the Islamabad Golf Club without any justification. Apart from this petition some other major scams involving serving or ex members of the military junta are as follows: - Ex Army chief General Jahangir Karamat took kickbacks of more than US$ 20 Million from Ukrainian tank company for purchase of 300 Ukrainian tanks for Pakistan Army through a middleman named as Colonel Mahmood , a brother tank corps officer of Karamat. Former Prime Minister Nawaz Sharif sent the chief of the WAPDA Major General Zulfiqar, then serving in ISI, to Ukraine and Azerbaijan to investigate the scam.- General Zulfiqar compiled a complete report of the transaction and the bribes given. But the Army tried to buy him out by rewarding him with the post of WAPDA Chairman and promoting him to the rank of a three star General. The then Army Chief, General Jahangir Karamat was forced to resign, based on the threat that if he did not, he would be charged for corruption. - The recently removed Railways and Communication minister General Qazi gave many road contracts to a firm Hasnain Construction Company without any public tenders. The company, owned by a relative of General Pervez Musharraf?s son, was also awarded the lease of a lucrative real estate in Lahore for construction of a Golf Course under frontmanship of Palm Country Golf Club, Singapore. The relative of General Musharraf admitted publicly that he was working for a commission to use his contacts and influence for the company.- Prime commercial land developed in Defence Housing Authority Karachi was leased at dirt heap rates to McDonalds operated by Amin Lakhani by the then Corps Commander, Karachi Lt. General Afzal Janjua. - The Army?s coercive organ NAB struck various under the table deals with various individuals accused of high profile economic crimes in addition to arm twisting NAB defaulters, into joining the present government. These include the EX Prime Minister Zafarullah Jamali and at least one fourth of all elected legislators. Where does the military virtue of a defense outfit stand in these circumstances? Is 2003 not a year fit to publish its obituary? Our military virtue died, trampled below the treacherous wheels of overpriced military trucks and overpriced Chinese aircraft and defective Atlantique planes that crash in our waters because of dubious maintenance. Yes all this has served one important development purpose. Sons of ex-subedars, ex-clerks and ex-assistant political agents have done well, climbing from relatively simple life styles to grand luxuries propelled by phenomenal assets. All came to clean the Augean stables and all departed richer. The only exception was General Yahya Khan who whatever his drawbacks at least did not have the mind of a petty shopkeeper. Clausewitz, the great philosopher of war described ?Military Virtue? of an Army as the corporate spirit which forms the bond between bravery, enthusiasm and spirit de corps. Clausewitz further defined military virtue as a quality, which drives an Army in a similar way as genius makes a military commander illustrious. Military virtue in words of Clausewitz could be generated in two ways, i.e. by a succession of military campaigns and victories or by military training activity carried to the highest pitch. The more a general demanded of his troops in terms of dedicated military activity in peace, the surer he would be that his demands in war would be properly answered. In short military virtue is the fuel that is supposed to drive an Army in war. With the above premise in mind and keeping in view our present history it can be safely concluded that military virtue of the Pakistan Army as an institution witnessed erosion from 1958 once the party started that made sons of Risaldar majors and Assistant Political Agents progress into industrial tycoons. It was a joy ride. Men who had one green suit to wear, in the words of General Tajammul, became the tycoons of Pakistan. It was the beginning of prosperity for few and the beginning of the end of military virtue of a previously Spartan and clean military machine. The only Army chief led the second military junta of Pakistan not from humble background and this ensured that the Pakistan Army was kept away from cheap consumerism and avaricious lust for real estate. The second great dinner party started in 1979 when thanks to Soviet invasion of Afghanistan a heaven-sent opportunity arrived in shape of US military aid for the third military junta of Pakistan. Stingers were flown in by the big daddy for the obedient son and silent soldiers sold these in the open market. Thus new business empires were created. The Zia junta as a whole did roaring business and the result is that at least four major tycoons of Pakistan today including present commerce minister have direct links with the Zia junta. Where does building 90 acres of a welfare colony known as Creek City with the cheapest shack for Rs. 6 million fit in? Did the military junta begin the occupation for such sublime purposes in 1958 or 1999? Where does developing 62 acres of land in prime commercial real estate in Islamabad fit in? Is this the business of a Navy that was miserably shut up in a mouse hole in Karachi Port in 1971 War? True that kickback may have been taken, but at least Admiral Mansur bought a good submarine for the Navy. But for whose welfare is the Navy undertaking a project 1500 kilometers from the nearest sea? What began as an idealistic journey ends with the shady deals around creeks in Karachi, which the Navy failed to defend in 1971, and a military junta, what,s they did in Afghanistan and in Kargil just to investigated the whole role of ISI and GHQ ? Which wants to rule this country for eternity. And in this messy situation, the subservient Lahore High Court AND SUPERM COURT has been asked to sit on judgment with the sprawling mountains of charges, some even admitted publicly by the Army. God help the poor Mr. Justices of the superior court. They paid a big price to hearing the case suspended justice paid the price of gawadar real estate and DHA LAHORE bahria town Peshawar scams and other he is told to go home for asking the army for corruption, asking from god father about corruption on e PM hanged two are in exile so you must go home waiting the fate of our poor chief justice of Pakistan and 165 million people hope, it?s tips of ice berg really more scam is there, just help us to bring democracy in Pakistan back on foot other wise world will see the terrorism non stop and killing ground and breading ground of frusted and hopeless people to destroyed the peace of whole world .. Bring back the exile leadership back to home other wise paksitan have no future to stay in global scenario.
About arthour
usman karim is lahore based pakistan [email protected]