Only a couple of weeks ago on 20 September 2019, Anwar Jessani, the Chairman of the Federation of Ismaili Co-operative Societies Limited called out the unethical practices of Nizar Fazwani and has brought forward the issue of Mr. Fazwani and other office bearers withdrawing deposits amounting to crores of rupees, and also earning unusually large amounts of interest against their deposits from the cooperative housing society’s funds. Fazwani and other office bearers also did not let the accountants of the society deduct the legal mandatory amount of withholding tax against their earnings due to which the issue has caught the eye of National Accountability Buearu (NAB) in Pakistan.
The NAB had launched an inquiry into the matter by summoning the Branch Manager of Soneri Bank Limited where accounts of Pak Fidai to investigate the misappropriation of funds.
The NAB letter is enclosed below which was initiated against Pak Fidai and other Ismaili-operated cooperative housing societies in November 2018. However, an inquiry specific to Pak Fidai is now expected:
The complete letter of the letter written by Anwar A. Jessani addressed to Pak Fidai Cooperative Housing Society is reproduced below:
“With deepest regret and heavy heart, I address Pak Fidai Society relating ot their unetical practices being materialized along with the harsh, shrewd behavior and non-co-operative attidute of its Directors which has ultimately results in a serious impediment for hte institution.
To call you of the meeting on 2nd Quarter of 2019, held in Karachi, your Board of Directors had approached me with the request the Federation should assist / help Pak Fidai co-operative Society in recovery and payment to Depositors. This meeting was attended by your four Directors.
Namely (1) Nizar Fazwani, (2) Wazir Noorani, (3) Barket Ibrahim (4) Ehsan Jumani.
They had agreed to provide a list with complete details of depositors as well as borrowers. Unfortunately, the list along with required information has not yet been divulged by the Board for the reasons best known to them.
Based on the information provided by Staff and Management of Pak Fidai Co-operative Society, office bearers have withdrawn Deposits amounting in Crore of Rupees. Due to intense greed of money, the have even adjusted their balance deposit against he loan recovery, It is also pertinent to mention that all the
office bears, director along with absconding Chairman Nizar Fazwani had advanced huge amount of loans to families and friends and have failed to initiate recovery of loans. Till today huge amount of money is outstanding and recovery is extremely pathetic.
Another unethical and regretful issue is relating to certain directors who for their own benefits have deposited money in Pak Fidai at an interest rate which is higher by 4-5% than the Bank Deposit rates. Above all Pak Fidai has been unsuccessful in deducting lawful taxes on interest earned by Depositors i.e.,
withholding tax. Non-payment of tax can lead to a very serious problem with tax authorities.
It was the prime responsibility of the office bearer and director of Pak Fidai Mr. Wazir Noorani to safeguard the interest of depositors and ensure the timely recovery of loan advanced to family and friends.
Unethical practices are condemned in our Holy Quran and holds NO MERCY in the eyes of ALLAH.
When I was in Canada in the month of May, it had come to my knowledge that Mr. Wazir Noorani who considers himself to be a pious man believing in best practices had stooped down by restoring withdrawal of his personal deposits. This act was unethical on his part.
Before I left for Canada I was in communication with a good, responsible friend of mine, Barkat Ibrahim, a director of Pak Fidai Society who assured me he would refrain and ensure from not releasing any money and follow ethical values but to my dismal it was shocking, depressing and not visualizing
that a responsible person like Barkat had lost his values by pressurizing members of Pak Fidai to release Wazir Noorani’s deposit amount. On knowing this I contacted Mr. Wazir Noorani and got upset with his attitude and irresponsibility in protecting Pak Fidai Society and if such act continues it will not be possible for Federation to assist them. He promised to do the
needful and requested me to come back to Pakistan in September 2019.
I would like to add that depositors of Pak Fidai society are now worried, upset and frustrated running from pillar to post for their interest and principle amount. If timely action is not taken a catastrophic situation can be created probably leading to intervention of Government Agencies including NAB. If such situation arises then definitely all Board of Directors will be in huge trouble.
It is my advice that Pak Fidai should urgently release the amount of small depositor of Rs. 5 lacs as well as Rs. 10 lacs rupees in order that needy people do not suffer for no fault of theirs.
Pak Fidai Co-operative Society’s situation is extremely frustrating and challenging, this faculty holds no character and ethics. They all claim to be great volunteers but in reality, are least bothered to safeguard interest of Depositors and work towards achieving a sustainable credit cooperating society.
Immediate elections for New Managing Committee, as per bye laws only a Class A member can become a Director. But in case of Pak Fidai, a managing Committee does not exist and quorum is not complete. It is essential to note that you cannot entertain new membership for Class A. Only existing Class A members can aspire to become Directors.
As your membership list is already with several Jamati members therefore it is prudent that all legal aspects are covered and inducting new Class A member should be avoided.
Keeping in view the insincerity of office bearers, unprincipled, unprofessional strategy, negligent attitude, bad behavior of directors of Pak Fidai Cooperative society and my experience in analyzing your situation has brought me to an opinion that henceforth nobody can be of any assistance to such an institution.
I also take the opportunity to personally thank Director Mr.
Sam Sam Ali Raza for his extended, excellent cooperation.”