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SSRF incurs loss of Rs 60m due to investment in JS Mutual Funds
KARACHI: Established in 2006 with the sole objective to provide relief to the vulnerable and disadvantaged people of Sindh, the Sindh Social Relief Fund (SSRF) has reportedly lost a whopping Rs 60 million due to investment in JS Mutual Funds. According to details, the Mutual Fund approached the SSRF and solicited an investment of Rs […]
KARACHI: Established in 2006 with the sole objective to provide relief to the vulnerable and disadvantaged people of Sindh, the Sindh Social Relief Fund (SSRF) has reportedly lost a whopping Rs 60 million due to investment in JS Mutual Funds.
According to details, the Mutual Fund approached the SSRF and solicited an investment of Rs 300 million in 2008. Since it was beyond the mandate of the SSRF to make investment in Mutual Fund, sources claimed that sufficient caution was not exercised by the recipient Mutual Fund either in assessing the legal documents and investment mandate of the (SSRF) which were provided along with the account opening form, which had resulted in the loss to the national exchequer.
The provincial government had created the fund to provide relief to the people of calamity-hit areas of the province but experts said that it was beyond understanding and a mistake on the part of the Sindh Finance Department as to why such a huge amount was invested and that, too, against the standard operating procedure of the department.
Moreover, a summary sent to provincial chief minister by Sindh Finance Secretary Malik Asrar Hussain had said, “It may be recalled that the government of Sindh has approved establishment of SSRF with the objective of moving towards some form of direct intervention in providing relief to the vulnerable and disadvantaged people in distress. In this perspective an amount of Rs 3 million was allocated in the budget 2005-2006 and it was announced by the then senior minister for finance and cooperation in his budget speech that the fund would be boosted with an additional investment of Rs 2 billion annually.”
According to sources, “The legal and institutional mechanism finalised at that time authorised the SSRF to invest in the government of Pakistan-guaranteed schemes such as treasury bills (for short term period ranging from three months up to a year) and Pakistan investment bonds (for long term ranging from 5 years to 15 years) of fixed deposits with large commercial banks (foreign and local).”
A meeting was held between the Sindh Finance Department and a team of the JS Investments Limited at the committee room of the finance secretary on November 23, 2010.
The agenda of the meeting included: analysis and evaluation of the investment made by the SSRF in the Unit Trust of Pakistan (UTP) along with examining the legal status of the investment and reasons behind the value of the investment remaining below cost.
Later, the Finance Department forwarded the case to FIA under vide letter FD(FMH)2(1)2008-09 on December 3, 2010 for further investigation into the matter.
The matter was under probe and a meeting of SSRF was held under then Sindh governor Dr Ishratul Ibad in January 2007 at the Governor’s House. The matter was discussed and it was stated that in the first phase non-governmental organisations (NGOs) might be invited for discussion and obtaining their idea for better utilisation of the funds for the poor and the needy.
“It may include final assistance for marriage expenses and dowry for daughters of the destitute. Zakat and Ushr Department Secretary will provide a list of leading and well reputed NGOs at district, town and taluka level to facilitate the government to interact with them to obtain their input to utilise the funds of the SSRF,” decided the meeting.
Published in Daily Times, February 7th 2018.
