ISLAMABAD - The four-member Joint Inquiry Team Monday recommended criminal action, fine, penalty and recovery against CEO DG Khan Cement Raza Mansha and CEO Bestway Cement Zameer Ahmed for establishing factories near Katas Raj Temple in violation of law.

The inquiry report submitted to Supreme Court by Additional Advocate General Punjab Qasim Chohan established that serious irregularities had been committed by the relevant departments in the process of setting up cement factories and favouritism was extended to DG Khan Cement and Bestway Cement factories.

The report found many officials responsible for extending undue favour and causing lapses in the process of issuance of NOC’s and non-fulfilling the codal formalities for setting up of cement factories in District Chakwal.

Those involved include former secretary Industries Major (R) Fayyaz Bashir, former secretary Environmental Department Iqbal Sheikh, the then Director Environmental Protection Agency (EPA) Ahmed Nadeem, the then DCO Chakwal Azam Saleem, former District Nazim Chakwal Sardar Ghulam Abbas Khan, former Tehsil Nazim Malik Hafeez-ur-Rehman, former Tehsil Nazim Peer Sajid Hussain Karooli, former Director Small Mines Assistance  Irshad Ali Khokhar, District Officer Revenue Malik Qayyum, former LAC Industries Ahmad Alam Waseem, Revenue Officer Tatral Allah Bakhsh Jaspal, Gardawar Ashraf, Patwari of mouza Tatra Rasib, Patwari of mouza Darmial Rashed Hussain and other revenue officers who were posted during the land acquisition process.

“Criminal proceeding against officers/officials of Industries Department is also recommended for misappropriation and loss of record”, the report recommended.

On September 14, the top court directed an inquiry in the matter to ascertain whether any lapse occurred or favouritism was shown by the concerned officers of the Industry Department and other relevant departments in setting up the cement factories.

“Let the Anti-Corruption Establishment Punjab conduct an enquiry and submit a report to this Court within a fortnight,” the top court had ruled. In compliance, the 4-member Joint Inquiry Team of Anti-Corruption Establishment Punjab collected record from all relevant departments and associated officers of District Government Chakwal, Industries Department, Environment Department, Mines and Minerals Department and concerned cement factories.

A 3-judge bench headed by Chief Justice Mian Saqib Nisar and comprising Justice Faisal Arab and Justice Ijazul Ahsan took up the case regarding setting up cement factories which dried the pond of Katas Raj Temple.

“Presently, the cement factories are emitting effluents, polluted water, etc which affects badly the environment and health of the inhabitants of area. The same has also been reported by the environment department itself and the regulatory departments look to have failed to monitor and regulate the said three industries,” the inquiry report stated. On negligence of district government, the report revealed that correspondence between Assistant Economic Advisor III Industry Department Javed Arshad and District Nazim Ghulam Abbas, now in Pakistan Tehreek-e-Insaf (PTI), and former District Coordinator Officer Chakwal Azam Saleem from 2003 to 2006 was indicative of the fact that negative area was not declared in time by the District Government Chakwal and Industries Department.

“Thus, the proponents i.e. DG Khan Cement Bestway Cement were facilitated in establishing the said industries in the intervening period of correspondence from 2003 to 2008. Had there been a timely decision by the departments regarding declaring negative area, there would have been no question of setting up of these industries”, the report stated.

The report stated that most of the districts of Punjab had declared their negative areas up to 2005-06 as per the guidelines of Industries Department except district Chakwal, adding that it was deliberately delayed due to unnecessary communication which allegedly provided space to the factory owners for setting up the cement plants.

“The very existence of 3 cement factories (DG Khan Cement and two units of Bestway Cement) in ‘negative area’ is itself a sheer violation which requires action under the law against all the officers/officials of above departments and beneficiaries as well”, the report stated.

It further observed that Bestway Cement Factory Chakwal (Line-2) situated at Choa Saidan Shah had got approved site plan from TMA during the construction of factory. 

“The officers of Municipal Committee Kalar Kahar failed to approach factory owners despite the fact that they were aware of the fact that construction of factory building was in progress and they caused loss of millions of rupees to the government exchequer by not paying government fee for approval of site plan”, the report said.

Three cement factories had not submitted 20% land use conversion fees resulting in huge loss to state exchequer which is needed to be recovered at present rate, it added.

The report further stated that DG Khan Cement further leased out 42 kanals 7 marlas of land out of 1,022 kanals to Nishat Shuaiba Paper Products which was also without codal formalities.

As far as the industries, commerce and investment department Punjab is concerned; the report said that the 3 cement factories had not submitted any application for seeking approval from Industries department before setting up the factories in the vicinity of Kahoon Vally.

“Moreover, Bestway Cement submitted statement which also confirms the fact that no NOC was obtained from Industries Department”, the report stated. During scrutiny of the record, it transpired that the land for establishment of Bestway Cement and DG Khan Cement had been acquired through Industries Department on excuse of public purpose and massive illegalities were committed while acquiring the land of private persons, the report stated.

The report further stated that 13 FIRs were registered during acquisition of land during 2004 to 2007 against inhabitants of the vicinity of Kahoon valley which reflected that it was a forcible acquisition.

The report said that original noting file had not been produced by the Industries Department, adding that the issue of missing of important file required legal action against delinquents but so far no action had been taken by the department.

Regarding EPA, it said that the DG Khan Cement was under construction when they applied for environmental permission as reported by DO Environment, adding that the factory was needed to get the requisite permission before the construction of the building at site.

Bestway Cement Line-1 had not submitted any application or had gotten approval from the EPA before setting up of cement factory in the vicinity of Kahoon valley, the report stated.

“Thereafter, NOC was issued by the Environment Department after submission of penalty fee of rupees one lac in the year 2007, imposed by the Environment Tribunal”, it said.

The Bestway Line-II and DG Khan Cement factories had submitted applications in 2006 and 2004, respectively, in the EPA for issuance of the NOC but the EPA had not followed the law and issued the NOC.  “It was mandatory for EPA Department to issue NOC before construction of facilities, after completion of construction at site and at the time of installation of plan and machinery. Contrary to that, only one time NOC, i.e. during construction was issued.”

The report stated that thousands of trees were to be planted by Bestway Cement and DG Khan Cement but nothing was done. The inquiry team observed that if the proponent had planted as many as 1,35,000 trees, the negative impact on the environment could have been reduced and the water table could have been maintained.

“Hence, regulatory departments i.e. Mines and Minerals, Environment and Forest and the proponents are sole responsible for the environmental degradation”, the report established.

The leases to Bestway and DG Khan factories were without open auction and without formal NOC, the report stated.

After perusing the report, the bench directed Anti-Corruption Establishment Punjab to proceed with the recommendation and findings of the Joint Inquiry Team. It also directed the Anti-Corruption Establishment Punjab to submit implementation report fortnightly.