LAHORE The Federal Investigation Agency (FIA) has arrested two former office-bearers of Zarco and a bank manager involved in opening and operating of a fake bank account and embezzlement of Rs 45 million. A case vide FIR No 23/2010 under sections 420/468/471/109 PPC RW 5(2)47 Prevention of Corruption Act had been registered at the FIA PS Commercial Banking Circle Lahore against the accused persons, the FIA spokesman said on Friday. Those arrested include Zarco Co Ex-Secretary/SEVP Mubashar Hayat Mirza, Zarco Co Ex-SVP Muhammad Ashraf Ahsan and Al Baraka Bank Shadman branch Assistant Operation Manager Muhammad Saqib Siddiqui. It may be mentioned that on the advice of State Bank of Pakistan (SBP) Governor and Interior Ministers Advisor, a campaign was launched for the control of 'Hawala and flight of capital. It was noticed that the foreign exchange companies were allegedly involved in the above said acts, which caused the loss of capital and depletion of foreign exchange reserves. The action was in the backdrop of economic crisis, fast worsening economic situation and devaluation of PKR vis--vis US Dollar and other currencies. The FIA Punjab assumed a leading role and launched a strategy to curb this trend. In the flow of this operation well-known foreign exchange company, Zarco Exchange Company (Pvt) Ltd was booked by the FIA Punjab. A case FIR No 9/2009 dated February 21, 2009 was registered at the FIA Anti-Corruption Circle Lahore on the allegations of illegal transfer of money, and four accused persons namely Nadeem Ishtiaq, manager, Irfan Ishaq, assistant, Shehbaz Ahmed, manager and Kashif Javed, business developer were arrested on the spot. The FIA conducted investigation and the report was sent to the SBP Governor by the FIA Islamabad Director General. Meanwhile, IT Head of Zarco Abdul Mussawar Waqar was arrested for tampering with the Companys records. The SBP authorities in their report dated August 4, 2009 endorsed the view point of FIA. Having been found involved and being the main beneficiary, Zarco CEO Syed Lakht-i-Hasnain was arrested during the course of investigation. It was established that for the period November 2006 to May 2009: the Zarco CEO sucked public money to the tune of Rs 420 million and illegally remitted it abroad in his name as well as his wife, son and foreign employees; the Zarco transmitted Rs 68 billion illegally abroad in contravention of rules and records were manipulated to conceal the diversion; the senders were deliberately camouflaged by using CNICs of persons unconcerned and that the Company violated the SBP rules and regulations. All the accused were bailed out by the Lahore High Court except Syed Lakht-i-Hasnain, whose bail was dismissed by the Supreme Court of Pakistan as well. Challan of the case was submitted in the competent court on January 25, 2010. In January 2010, after the dismissal of bail petitions of the Zarco CEO by the apex court, his wife Kausar Bano lodged a complaint with the FIA DG against Mubashar Hayat and Muhammad Ashraf Ahsan alleging therein that they in connivance with the officers of Al Baraka Bank Circular Road branch Lahore had opened account numbers 0636000000620 and 0636000000398 respectively in the names of complainant and her husband and operated the same fraudulently. Upon this, an enquiry was entrusted to the FIA Special Investigation Unit (SIU) Islamabad and later transferred to the FIA Punjab Zone Director under the orders of FIA DG. An enquiry number 66/10 FIA CBC Lahore was registered while a five-member committee headed by DD-Law Malik Javed and comprising a deputy director, two assistant directors and an inspector was constituted by the FIA Punjab Director. The enquiry committee concluded that the account of Syed Lakht-i-Hasnain was opened by someone with his consent and knowledge. All the proceeds, received from abroad in the said account ie Rs 150 million were transferred to the Zarco Exchange Companys account. It also came to the light that the disputed account became dormant till July 27, 2009, and the same was re-activated by Syed Lakht-i-Hasnain on July 28, 2009 on his written request, when he got encashed a cheque of Rs 50,000. As regards the account in the name of Kausar Bano it transpired that it was opened by bank officers Saqib Siddiqui (OG-II) and Muhammad Akram Daudi (now retired branch Manager) on the introduction of Mubashar Hayat and Muhammad Ashraf Ahsan fictitiously by violating the laid down procedure. She had disowned the opening and operation of this account. There was transfer and withdrawal of Rs 45 million on June 6, 2007. The FIA is investigating as to who sent that money from abroad and who encashed the same. The FIA Punjab Director recommended the registration of case regarding opening and operation of these accounts.