The Federal Investigation Agency’s (FIA) Corporate Crime Circle has initiated an inquiry into alleged money laundering involving the management of the Institute of Business Administration (IBA), Karachi. The agency has formally requested extensive financial records under the Anti-Money Laundering Act 2010.
Records Requested
In its correspondence, the FIA directed IBA’s Executive Director to provide audited financial statements from 2020 to 2024, along with:
- Grants received from provincial and federal Higher Education Commissions (HEC)
- Endowments and donations from domestic and foreign donors
- Bank statements of IBA and affiliated trusts
- Utilization reports, approvals, and grant vouchers
- Procurement records with names of contractors and vendors since 2020
- Trust deeds and related documentation
The investigation centers on claims that HEC grants, public funds, and endowments may have been diverted through questionable procurement practices and subsequently laundered into domestic and overseas properties.
IBA Responds
An IBA spokesperson confirmed receiving FIA’s notice but described it as a “routine inquiry,” adding that other public-sector universities have received similar notices.
The spokesperson emphasized that:
- No individual at IBA holds unilateral financial or administrative control.
- Internal and external audits ensure compliance with financial regulations.
- All procurement and financial processes undergo pre-audit checks.
However, correspondence tied to the inquiry alleges that IT and infrastructure contracts were repeatedly awarded to specific contractors, raising concerns of possible misappropriation.
