The Federal Investigation Agency (FIA) has arrested three former senior officials of RAILCOP, a subsidiary of Pakistan Railways, in a high-profile corruption case involving fake bank guarantees worth over Rs1.16 billion, a statement from the Ministry of Railways said on Thursday.
Those arrested include Syed Najam Saeed, former chief executive officer of RAILCOP; Muhammad Zubair Hussain, ex-controller finance and accounts; and Meh Run Nisa, former director of commercial & marketing.
The arrests were made by the FIA’s Anti-Corruption Circle in Islamabad under FIR No. 37/2025 registered on June 30, according to the statement.
The three former executives are accused of colluding with Irfan Hameed Khan, chairman of M/s Indus Valley Industrial Junction (IVIJ), to prepare and submit 14 fake/bogus bank guarantees of United Bank Limited and Bank Al Habib Limited worth Rs1.17 billion in favour of different government departments for participation in tendering processes of development projects.
According to the statement, M/s IVIJ received Rs164,969,160/- (nearly Rs165 million) as commission from RAILCOP Islamabad in respect of providing said 14 fake/bogus Bank Guarantees illegally.
“Thus, they caused huge loss to the tune of Rs164,969,160/- to national exchequer,” the ministry said, “Tomorrow they will be produced in court for remand.”
Investigation is underway.
