Mehmood Named in New Scam for Favoring Telecom Companies

Staff Report:
After the wheat scam, top bureaucrat Capt. (Retd) Muhammad Mehmood has been implicated in another scandal, this time for favoring telecom companies by allowing them to pay fees in installments without cabinet approval.

The Chairman of the Pakistan Telecom Authority (PTA) informed a parliamentary panel on Monday about a scandal involving the former Secretary of IT, who had issued an illegal policy directive allowing a few Long Distance and International Operators (LDIs) to pay fees in installments. Former Secretary IT, Capt. (Retd) Muhammad Mehmood, was removed shortly after this scandal. Earlier, he had also been removed from the Food Ministry following the emergence of a wheat import scam.

The Senate Standing Committee on Information Technology and Telecommunication held a meeting under the chairmanship of Senator Palwasha Khan to discuss various issues in the telecom sector. During the meeting, the issue of granting a tax exemption worth Rs. 54 billion to LDI telecom companies was also discussed. It was revealed that the real issue was that the former Secretary IT had issued a policy directive allowing LDIs to pay fees in installments, which was beyond his authority, making the act illegal.

However, the IT Ministry officers distanced themselves from the decision made by the former IT Secretary, Muhammad Mehmood. The Chairperson of the Committee questioned the legal standing of the former Secretary’s policy directive. A Member of the Legal IT Ministry stated that he had not been consulted about the policy directive and was on vacation at the time. A Member of the Telecom IT Ministry indicated that there had been pressure to move the file quickly. The Chairperson remarked that they were aware of the source of the pressure and highlighted the involvement of the ex-Secretary IT in previous corruption cases.

The Chairman of the Pakistan Telecommunication Authority (PTA) briefed the Senate panel on the issue, stating that the former IT Secretary had issued a policy directive beyond his authority, and this matter was also discussed in the Cabinet. He added that five LDI companies were willing to pay the required fees, although some had filed court cases. He also mentioned that the licenses of the LDI companies were expiring in July and August, and legal proceedings were ongoing regarding these companies.

Senator Anusha Rehman questioned whether 15 LDI companies had optical fiber cable or not. She noted that four companies were particularly active in influencing policymakers. The Chairman of PTA said that there were currently around 15 cases in court involving LDI companies. IT Ministry officials confirmed that LDI companies’ licenses were expiring in 2024 and that authorities were assessing whether additional LDI licenses were necessary. Anusha Rehman stressed that the non-renewal of licenses could result in financial losses and questioned why installment payments, which were allowed in 2020, were not being offered now.

The Chairman of PTA replied that he had no knowledge of the relief provided in 2020 to LDI operators and confirmed that a company had recently requested to pay in installments. Anusha Rehman criticized the incorrect letter issued by the Secretary in 2020 and emphasized the need for a clear policy direction from the federal government. She also expressed concerns about the long-standing stay orders in court, questioning the effectiveness of the legal team.

Senator Humayun Mohmand questioned the closure of X (formerly Twitter) across the country, asking why the government was using the platform through VPN if it considered it problematic. The Chairman of PTA noted that X is widely used worldwide, often through VPN registration, but warned that free VPNs can be dangerous. Anusha Rehman stressed the need to remove illegal and harmful content from the internet to protect the youth. When discussing compliance, she pointed out that companies often claim such content does not violate their laws. She expressed high expectations for the Chairman of PTA to resolve these issues.

The Chairman of PTA revealed that the PTA receives around 150 complaints daily against social media companies, with 98% related to TikTok, 48% to Meta, and 52% to YouTube. Content is blocked when it violates Pakistani laws, and X’s case is currently under review in the Islamabad, Sindh, and Lahore High Courts. Senator Humayun Mohmand further questioned the legality of using VPNs to access X, to which Interior Ministry officials confirmed that it is illegal. The Chairman of PTA said efforts were being made to register VPNs, with over 20,000 VPNs already registered.

It was revealed that the Minister of State for IT had been removed from the boards of two subsidiaries of the Ministry of IT—Universal Service Fund (USF) and Ignite. Senator Anusha Rehman questioned why the Minister of IT and Telecom no longer chairs the boards of these organizations. IT Ministry officials explained that under the SOE Act, board members must now come from the private sector, and as a result, the Chairman of the Board is also from the private sector.

Establishment Division officials gave a briefing on the appointment of the Secretary IT & Telecom. They stated that in the past, officers from outside the division had been appointed. Both the IT Ministry and the Ministry of Law had appointed officers from outside. They said that a total of 84 applications were received, and 77 were scrutinized. The Prime Minister had approved a mechanism for these appointments, according to the Establishment Division officials. A Scrutiny Committee was formed under the chairmanship of the Additional Secretary of the Establishment Division. As many as fifteen candidates met the prescribed criteria, and all were called for interviews by the committee.

Chairperson Palwasha Khan questioned why professionals were not included in the committee, asking, “How can a professional be scrutinized without a professional?” Senator Humayun Mohmand called for details of those who were not selected.