Islamabad Zubair Kasuri – A seismic financial scandal has erupted within Pakistan’s telecommunications sector, casting a dark shadow over seven prominent Local Loop Interconnect (LDI) companies and implicating high-ranking officials from the Ministry of Information Technology (IT) and the Pakistan Telecommunication Authority (PTA). At the heart of the controversy lies a staggering PKR 58.9 billion in unpaid dues, raising serious questions about regulatory oversight and potential collusion.
The accused companies, including industry heavyweights WorldCall Telecom, Wateen Telecom, Telecard, Dancom Pakistan, Redtone Telecommunication Pakistan, Wise Communication, and Circle Net Communication Private Limited, are alleged to have operated with expired licenses for several months, effectively defrauding the national treasury. The financial breakdown reveals PKR 16.7 billion in principal dues and an additional PKR 42.2 billion in surcharges, highlighting the scale of the alleged malfeasance.
The situation has triggered widespread concern and scrutiny, particularly regarding the roles of the Ministry of IT and the PTA. Allegations of complicity have surfaced, with accusations that officials from these bodies deliberately failed to recover the outstanding amounts, raising suspicions of potential corruption and malfeasance.
The unfolding scandal has prompted swift government action. Prime Minister’s intervention has resulted in the immediate removal of the IT Secretary from their post, signaling the government’s intent to address the crisis. This move follows prior recommendations from the law division, which had advised against renewing the licenses of these defaulting operators.
Accusations of corruption have further intensified the crisis. A senior PTA member acknowledged that the Sindh High Court has directed the authority to resolve the issue promptly. However, allegations persist that past attempts to address similar issues were deliberately delayed, fueling suspicions of systemic corruption. Furthermore, claims have emerged that PTA officials accepted bribes to prolong the resolution of the matter. The companies are also facing serious accusations of money laundering, with allegations that they transferred substantial funds abroad through illegal channels like “hawala hundi.”
Adding fuel to the fire, an LDI company chief reportedly claimed that their company generated PKR 500 billion in revenue over the past decade while evading taxes, further highlighting the extent of the alleged financial irregularities.
The PTA has acknowledged the challenges in recovering the dues and the need for swift action, but concerns remain about the effectiveness of existing regulatory mechanisms. The authority has also stated that these collected funds were to be given to the USF and the government. The unfolding scandal has raised serious questions about transparency and accountability within Pakistan’s telecommunications sector, with calls for a thorough investigation by the National Accountability Bureau (NAB) intensifying.
