Karachi whitewash

The Pakistani government wiped out evidence of a US$13 billion scam

The Karachi stock market crashes in March 2005. The securities watchdog takes his job seriously. He is advised against it. By, among others, Pakistani Prime Minister Shaukat Aziz. He persists. He is sacked for the trouble. For good measure, he is blamed for causing the crash. By, among others, General Musharraf himself. The government calls in an American (it has to be American) forensics firm to investigate. But data pertaining to the bookings of shares is already deleted from all computers in order to assist the team in its investigations. Including, it turns out, from the computers of the watchdog. The American forensics team does not find evidence. US$13 billion changed hands without any evidence. (Summarised from The Glasshouse).

Now, Pakistan’s National Assembly has directed the securities watchdog to investigate why the data disappeared.

1 thought on “Karachi whitewash”

  1. Wow. And to think we had large scams with Telgi and Harshad Mehta. Given the relative sizes of KSE vs. BSE, this is head-spinning stuff – plus the fact that Harshad got nailed. Just reinforces the idea that they’re a “nation” of robber-barons headed by a bungling military.

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