Islamabad halts FBR’s ‘scandalous’ car purchase amid corruption probe

Islamabad has halted the purchase of approximately 1,100 cars which the Federal Board of Revenue (FBR) wanted for its employees. The purchase order has been suspended until claims into corruption at the federal level can be investigated thoroughly.

Senator Saleem Mandviwala chaired the meeting of the Senate’s Standing Committee on Finance and Revenue to look into allegations raised against government officials.

The agenda of the meeting revolved around dissecting the scandalous purchase order made by the FBR and its subsequent approval. As per reports, the initial purchase order was made for only 1010 cars after which officials tacked on an additional 70 cars to the order to boost the total number of cars to 1080.

Senator Faisal Vawda had received threats as he brought the suspicious matter to light. Furthermore, reports revealed that raids against a rival car manufacturer had occurred around the time of the purchase order. These matters warrant a probe and investigations are underway.

Faisal Vawda who had initially ‘blown the whistle’ surrounding the purchase process made additional allegations. He revealed that FBR officers had issued him death threats and he substantiated his claims naming multiple senior officers.

The Senate Secretariate released the names of the three officers whom Faisal Vawda had named. The officers were identified as Ali Saleh Hayat, Shahid Soomro and Hayat Siddiqui – and were indeed working for the FBR.

In light of the allegations, FBR Chairman Rashid Mehmood Langrial said that the purchase order would be suspended immediately. In addition to the suspension, reports reveal that he also pledged to conduct an extensive investigation into every single allegation made in the senate meeting.

He requested that the Federal Investigation Agency (FIA) should look into Faisal Vawda’s allegations regarding threats made on his life. The senator has remained extremely vocal throughout the process. According to Vawda, FBR officials even raided Toyota Indus’ offices once he made allegations against the revenue watchdog.

Langrial suggested that in addition to the FBR’s internal review, the Senate Panel could order an ‘external agency’ to look into the matter as well. Given Faisal Vawda’s position on the matter, it is likely that an external investigation will be launched soon.

Langrial also highlighted the need for the automobiles by suggesting that tax officials could not ensure compliance with taxation laws without physically visiting business premises. He cited the existence of a "cash economy" as the reason behind the compliance issue.

The FBR’s revenue shortfall for the first half of fiscal year (FY) 2024-25 surged to 384 billion rupees. The revenue target was set at approximately six trillion rupees however, the FBR was only able to collect 5.624 billion rupees as per reports.