On 7th March 2017, a complaint was received in Anit Corruption Establishment, alleging commission of massive corruption in tractor subsidy scheme, run by Agriculture Department, Government of Sindh, and private persons. Subsequently, record was seized through raids at Agriculture Department and accused persons house.
After raid, record was seized from Agriculture department and was analysed, which showed that Accused Shehzad Riaz CEO M/s Shehzad Trade Link, agent of Belarus Tractors, worked as a dealer to deliver tractors to growers, who emerged successful in ballot, under subsidized tractor scheme from 2009 to 2012.
The dealer, Shehzad Riaz was supposed to deliver tractor to grower and claim subsidy of Rs.300000/= per tractor from Government of Sindh. As many as 5780 tractors were purportedly delivered by him to growers. But actually on ground, he did not do so. Rather, by issuing fake invoices as well as sale certificates, he received subsidy of Rs.1.45 Billion, fraudulently. Whereas, in fact he sold off tractors to other purchasers on the price of his choosing. He, engaged many dealers across Sindh province through two dummy companies M/s AR enterprises and M/s MI enterprises, which he had actually registered in the names of his own employees namely Amir Rafiq and Muhammad Imran, respectively. He got the tokens from growers and used them coupled with fake invoices to claim subsidy, fraudulently.
Dealer was supposed to collect pay orders from growers and deliver tractors to the same person and collect subsidy from the government. However record reveals that Shahzad Riaz deceitfully claimed to had received cash payments and generated invoices in the names of growers and claimed subsidy from the government. In fact, he had purchased token from growers, without delivering tractors. Upon verification during investigation, Hundreds of growers have admitted to had never received tractor but a nominal amount against token they had by Shehzad Riaz through his dealers. Besides, out of 45 dealers, 29 have deposed under section 161 crpc and some U/s 164 crpc, respectively, to had purchased tokens at the behest of Shehzad Riaz, without delivering tractors to growers. On the one hand, accused Shehzad Riaz got subsidy by issuing an invoice showing delivery of tractor to grower in each single case, on the other hand he issued parallel invoices bearing same engine and chassis number of tractor to routine customers, which he indicated while claiming subsidy.
Thereby, he got double profit of subsidy and sale of tractors at price of his choice, instead of fixed price of Rs.1035000/= per tractor, which he had agreed to charge in subsidy scheme. Size able number of fake invoices have been seized, which were doubly used for feigning delivery of tractor to grower on the one hand in sindh, and same invoice bearing exactly same chassis and engine numbers were sold to dealer in Punjab. Same invoices & sale certificates were used by accused to receive subsidy amounting Rs.1.4 Billion, fraudulently, without delivering tractors to poor growers. Evidence is on record showing making of as many as 1200 fake pay orders purportedly issued from a single branch of bank, from the account of accused for receiving subsidy, illegally.
Besides, double invoicing fraud, he managed registration of the subsidy scheme tractors in the name of market purchasers in Excise Department by issuing sale certificates bearing same engine and chassis numbers, which he had given in Agriculture Department in the form of invoice issued by him for claim of subsidy. In this regard, Excise Dept. after verification has generated a report to ACE. So many witnesses have denied receipt of tractors as shown in fake record by accused. His bank accounts show transactions from Punjab dealers confirming sale of same tractors to Punjab, which were shown into claim of subsidy.