Is PCB above the law?

Respected Justice (Retd) Nasir-ul-Mulk

Caretaker Prime Minister and Patron of the PCB

اسلام و علیکم
Sir,

I take this opportunity to invite your kind attention towards the state of affairs of the PCB and the role of its Board of Governors, considering that another reported meeting of the BoG of the PCB is scheduled on 17 July 2018.

The current BoG members list is given as below:

Mr. Najam Aziz Sethi Chairman
Mr. Arif Ejaz
Lt. Gen (R) Muzamil Hussain- WAPDA
Dr. Najeeb Samie- HBL
Mr. Miftah Ismail- SSGC
Mr. Mansoor Masood Khan- United Bank Limited
Mr. Murad Ismail- Quetta
Mr. Shahrez Abdullah Khan – Lahore
Mr. Kabir Ahmed Khan – FATA
Federal Secretary, Ministry of Inter Provincial Coordination, Government of Pakistan or any other officer nominated by him shall be an ex officio member and shall have the right to attend and speak at all meetings and otherwise take part in the proceedings of the Board of Governors, but shall not be entitled to vote.

It is requested that appropriate government agency may be deputed to investigate (afresh) and conduct a forensic/management audit specifically with regard to the minutes of the concerned BoG meetings, about why all the honourable BoG members of the PCB (which includes the then federal secretary of MO IPC and its minister Mr. Riaz Peerzada who were duly and separately informed) remained mum, over crores repeat crores of Rupees unlawful (and not allowed as per any clause of Franchise agreement) payments in the PSL-1 tournament, to the PSL Franchises, repeatedly brought to their notice in writing.

Our concerned agencies should also investigate all the honourable BoG members of the PCB, for why they did not raise their voice in any BoG meeting, even when the above matter of unlawful payments was already in their full knowledge and that the granting of BoG’s approval, legally held all of them collectively responsible, of all such grave financial irregularities, which were conveyed to them and was also in their knowledge, specially to the BoG member and the chairman audit committee, Mr. Mansoor Masood Khan, who is himself, a very senior banker, as well.

The agencies must investigate about Media confessions of Mr. Najam Sethi that he had prior [concrete] informations of the players intentions and plans of spot fixings in PSL-2, but he allowed the crime to be committed, he allowed Pakistan to be disgraced, but he STRONGLY opposed and managed to STOP the FIA probe from investigating the spot fixing scandal.

FIA should also investigate all the BoG members of the PCB about why they did not raise their voice in any BoG meeting, even when the above matter was already in their full knowledge?

Further, the relevant agency should question inaction and no inquest and reasons of hiding it under the carpet, on the part of the PCB/PSL management and all the BoG members of the PCB, on the following reported [ https://tribune.com.pk/story/1746622/7-franchise-used-bait-betting-scam-psl2/ ] betting scam about PSL-2, as reported by the media, despite propagation of zero tolerance policy on match fixings:

Quote.
“An alleged betting scam involving former Pakistan cricketers and officials that took place during the second edition of the Pakistan Super League (PSL) has surfaced.
According to a report published in the Daily Express, a couple of former Pakistan cricketers colluded with a regional officer to form a betting company, using the name of a particular PSL franchise as bait. They lured possible betting clients by giving them confidence that they had people inside the franchise —including a coach and a team official — assisting them.” Unquote.

It was also mentioned in the news item that the company claimed that it had dispatched expensive cars and watches to the players as a part of their fool-proof plan. The people who placed bets were assured that the team would lose its first couple of matches, a claim that gained more credence when the team lost its first match — resulting in more bets.

Here the question arises why it was in the interest of the PCB/PSL management to hush up the report and not go deep into the reasons of creation of a company to form a betting company, using the name of a particular PSL franchise as bait?

This is a very serious matter and the silence of the entire BoG of the PCB is really deafening.

Moreover, in an another recently reported scandal, {which deserves deep inquiry from an appropriate federal agency} It is very difficult to believe that PCB and ICC will be so naive to have been startled

[as reported by the daily Dawn in its report dated 25 June 2018 link..https://www.dawn.com/news/1416015 ] by the remarks of Pakistani batsmen Umar Akmal that he was approached by bookmakers during the 2015 World Cup to leave two balls for $200,000 for the One Day match (50 overs match) of ICC World Cup 2015 played at Adelaide, Australia on 15 February 2015.

This was the same match about which former Pakistani Test Cricketer Mr. Sarfaraz Nawaz has been pointing out, about a news item, published in a newspaper, reporting about a top Pakistani official of PCB visiting Delhi and staying at the residence of a famous India Bookie (cricket match fixer) who paid Rs.40 crores and Rs.6 crores for Pakistani cricket team to lose two World Cup 2015 matches against India and West Indies, respectively.

Pakistani team did lose both the matches against India and West Indies in a most miserable manner.

In this regard, the then PM and Patron in Chief of PCB was duly requested for holding an inquiry, but of no avail.

Before dilating over that particular Indo-Pak WC2015 match, it will not be out of context to mention that recently PCB heavily punished Sharjeel Khan for playing two, repeat only two DOT balls in a PSL match, played in February 2017 at UAE.

Some self explanatory statistics of that famous Rs.40 crore Indo-Pak ODI WC2015 match, are provided below for your kind Information.

1. Pakistan lost the match against India by 76 runs (in 47 overs) by not even completing quota of 50 overs. (please remember that there was a reported advance payment of Rs.40 Crore for losing the match against India by an Indian bookie, at his Delhi residence, to a top PCB official. Now the genuineness of this report can easily be verified by checking the travel documents of all top PCB officials, to confirm, if anyone of them did visit Delhi, prior to Indo-Pak 15th February 2015 match and what was the purpose of their visit to India).

2. Now coming to the reported offer to Umar Akmal of USD 2,00,000 for two DOT balls, it will be not be a surprise to note that our team played 168 DOT balls in their innings, which is equal to 28 overs of complete DOT balls. Please remember (as informed above) that Sharjeel Khan was severely punished for playing only two DOT balls in a PSL match.

3. Pakistani team’s playing of full 28 DOT balls in an innings of just 47 overs, means that our team scored on only 114 balls or 19 overs in a match of 50 overs.

4. Umar Akmal himself scored zero and played four DOT balls in that World Cup match against India, while Umar Akmal told Samaa TV that he was approached by bookmakers during the 2015 World Cup to leave two balls for $200,000.

5. In this regard, Media has also reported very alarmingly that after PCB issued a show cause notice to Umar Akmal, he was called at the PCB headquarters in Lahore and subsequently PCB allowed Umar Akmal to play a league tournament in Canada. If this news was correct, it clearly implies that PCB has decided to not take any further action against Umar Akmal and the startling scandal was shelved by the PCB without taking it to its logical conclusion.
In this connection, some further main points for your consideration of an investigation against PCB and PSL management and financial irregularities are detailed below for your convenience and consideration please.

1. Why Mr. Najam Sethi sent (after refusing the permission initially but when the League agreed to pay few lac dollars to the PCB the consent was accorded) our 27 players in the lap of the Indians infested T10 League in the UAE and why no member of the BoG of the PCB ever questioned this matter in the board meeting?

2(a). Complete and abject surrender of PCB before the Indian Cricket Board (BCCI) in the ICC.

PCB under Mr. Najam Sethi voted in December 2017 for India (BCCI) to be made Big-1 after voting to make India Big-3 in 2014.

No international cricket during IPL from 2019 [Update Post #97]
Link:- http://www.pakpassion.net/ppforum/showthread.php?267451-No-international-cricket-during-IPL-from-2019-Update-Post-97

Link:-https://www.google.com.pk/amp/s/m.timesofindia.com/sports/cricket/ipl/top-stories/virtually-no-international-cricket-during-ipl-from-2019-bcci-ceo-johri/amp_articleshow/62544323.cms

2(b). Why Mr. Najam Sethi did not raise any objections in the last meeting of the ICC held in Singapore on 7-8 December 2017 over the Indian plan of making BCCI as Big-1, and agreed unconditionally, with the Indian plan which stipulates that from 2019 onwards, no cricket series will be played in the world under the ICC’s auspicious, during the days/time when IPL will be underway in the months of April and May? Strangely, the England’s Cricket Board (ECB) objected to this proposal of the BCCI, but Mr. Najam Sethi representing PCB, unconditionally supported the Indian Plan and raised no objection. And, despite such a huge and highly anti-Pakistan’s interest, favours granted to the Indians by Mr. Najam Sethi, what we we got from the Indians was that they refused to send to Pakistan, their blind cricketers team to play the World Cup matches during January 2018 in Pakistan; and on top of that Mr. Najam Sethi allowed our blind cricketers team to play against Indian team, the World Cup match, in the UAE, wherein, when the Indians refused to play in Pakistan, their match should have been forfeited and points awarded to Pakistani team: which when went out of home ground, to play in UAE, lost to the Indian team and Indian Blind team ultimately won the World Cup also.

Pakistan cannot allow Mr. Najam Sethi to make the PCB subservient of the Indian cricket board (BCCI) for reasons best known to Mr. Najam Sethi.

2(c). Mr. Najam Sethi is constantly humiliating Pakistan, by supporting out of the way [also remember Mr. NajamSethi’s all out and full support to the Indians in 2014 for the Big-3 plan in the year 2014, when, even Indian notables were raising their voices, against this Indian hegemonist plan in the ICC].

2(d). 450 million dollars question?

Reproduced below are some of the excerpts of the daily “The Express Tribune” news published on 30 June 2014 which proves that PCB’s income was to have been $450 million as a reward of supporting Indian Cricket Board’s plan of Big-3 in the ICC, which was originally (rightly) opposed by Mr. Zaka Ashraf, the then Chairman PCB, before Mr. Najam Sethi became Chairman PCB, as Zaka Ashraf point blank told the Indian Cricket Board Officials that any offer of tour of Indian Cricket team to Pakistan must be assured by a bank guarantee to PCB, so that in the event of any back out from the Indians, PCB will not suffer any financial loss and PCB’s support to the BCCI’s plan of Big-3 will not go down the drain, without any consequences for the BCCI.

Excepts of the news published by the daily “The Express Tribune” dated 30 June, 2014 are reproduced below.

LAHORE: Pakistan Cricket Board chief Najam Sethi claimed on Monday that his country will earn $450 million from the next eight-year cycle, mainly from four series with arch-rivals India.

India and Pakistan signed an agreement to play six series, four of which Pakistan will host in the next eight years, on the sidelines of an International Cricket Council (ICC) annual conference in Melbourne last week.
The windfall for Pakistan was made possible after they conditionally agreed to approve an ICC revamp that gives major powers to cricket’s “Big Three”, India, Australia and England.

“We get the most revenues when we play with India and if all goes well we are set to earn $300 million from the four series we host against India,” he said.

That, Sethi claimed, will get Pakistan the most funds after the Big Three.

“We will get revenues on fourth number, and I can say with confidence that in the next eight year cycle we will get $150 million dollars from the ICC,” he said, bringing the total takings to $450 million.

This compares to Pakistan receiving $10 million from the ICC per year in the last seven-year cycle, Sethi added.

3. Be Fooling the Nation:

3(a). Why the nation is being be fooled by Mr. Najam Sethi Chairman PCB by lodging a meagre $70 million compensation claim vs BCCI (against expected revenue of $450 million according to his own words reproduced above) with the Dispute Resolution Committee of the ICC [The Pakistan Cricket Board (PCB) is seeking $70 million in compensation, as reported by the daily The Express Tribune dated 11 April 2018 excerpts and its link reproduced as below:

Excerpt:
The Pakistan Cricket Board (PCB) is seeking $70 million in compensation. It initiated dispute resolution proceedings against the Board of Control for Cricket in India (BCCI) at the ICC in November last year.
link:- https://tribune.com.pk/story/1683067/7-icc-forms-panel-resolve-pakistan-india-dispute/ ]

According to the own statement of Mr. Najam Sethi reproduced as below and also quoted above there would be NO COMPENSATION IF INDIA DOES NOT PLAY DUE TO NON-CLEARANCE FROM DELHI QUOTED AS BELOW:

“But Sethi said there would be no compensation if India does not play due to non-clearance from New Delhi.

“There was no compensation before, there is none now. This is not the norm in mutual series when government does not give permission.”

Link:- https://tribune.com.pk/story/729174/big-four-pakistan-to-earn-450-million-in-cricket-cycle/

AS SUCH THE MILLION DOLLAR QUESTION IS WHY MR. NAJAM SETHI GOT AN APPROVAL FROM THE BoG OF THE PCB FOR AN EXPENDITURE OF ONE MILLION DOLLAR/POUNDS IN CONNECTION WITH THE EXPENSES OF FILING THE COMPENSATION CLAIM [THAT TOO FOR A MEAGRE AMOUNT OF ONLY $70 MILLION DOLLARS INSTEAD OF $450 MILLION] WITH THE ICC AND WILL ANYONE FROM THE GOVERNMENT ASK THE CHAIRMAN PCB TO PAY BACK TO PCB ONE MILLION DOLLARS?

4. There was a huge question mark on the non-transparent auction of media rights by the PCB for EIGHT years (2015-2023) instead of FIVE years; and that too for a lesser value from the previous five years media rights auction (2008-2013).

Before dwelling in the details of the PCB’s media rights auction, the following questions needs satisfactory answers:

a).  PCB invited Mr. Andrew Wild Blood an international expert on media rights,  to ascertain the value of PCB’s media rights, apprised the PCB directors and senior management that its value was around $300 million to $400 million, then why the rights were sold at much less amount for EIGHT years instead of FIVE years, which was allowed by the members of  the Media Rights Bid Tender Committee.

b). Why 12 foreign companies who paid $10,000 (each) to PCB for purchasing the tender documents for participation in the PCB’s media rights auction, were not allowed to participate in the bidding; and only two companies namely, GeoSuper TV and Ten Sports TV were allowed to bid for the tender.

C). Although, the Media Rights auction comes under the PCB’s Marketing Department, why the Director and General Manager of the Marketing Department were NOT allowed to sit in the tender opening of the auction.

First of all kindly peruse below the Indian Cricket Board’s (BCCI) comparative performance of earnings of huge income from the auction of its media rights for the next five years (not eight years) over the previous auction of media rights:

5(a). Rupert Murdoch’s Star paid 38.5 billion Indian rupees ($592 million) for the rights to broadcast India’s home matches from 2012-2018.

5(b). Broadcasting giant Star India on Thursday completed its virtual monopoly over Indian cricket by bagging the media rights of the national team’s home series as well as domestic cricket for the next five years by shelling out a staggering Indian Rs 6138.1 crore ($944 million approx).

5(c). The exact increase of next five years earnings of BCCI of media rights over previous seven years (2012-2018) comes to:$944 million – $592 million = $352 million

5(d). Percentage increase comes to 62.71

5(e). On yearly basis the increase is detailed as below:

$592 million divided by 7 years (2012-2018) = $84.57 million year

$944 million divided by 5 years (2019-2023) = $188.8 million

Yearly increase comes to 123.24%

6. PCB’s comparative analysis of media rights income from auction:

6(a). According to the media reports (PCB rarely officially/transparently provides its figures like the BCCI) the PCB on 27 March 2015, auctioned its media rights for the next eight years {2105-2023} (including the 4 proposed Indian team’s visits for the home series to be played in Pakistan or outside Pakistani soil) for less than $150million (as per AB TAK TV channel report the bid amount for the auction was just a peanut of $125 million, with further deductions of production costs and UDRS expenses which may be over $10-15 millions, reducing the net earnings to a meagre amount of around $110-115 million), compared with the PCB’s 2008-2013 five years media rights auction amount of $144 million.

6(b). The exact DECREASE of next eight years (2015-2023) earnings of PCB’s media rights over previous five years (2008-2013) comes to:

$115 million – $144 million = NEGATIVE $29 million

6(c). Percentage decrease comes to Minus 20.13%

6(d). On yearly basis the DECREASE is detailed as detailed below:

$144 million divided by 5 years (2008-2013) = $28.8 million per year

$115 million divided by 8 years (2015-2023) = $14.38 million per year

Yearly DECREASE comes to 49.93%

7. Besides the matters pointed out above the Chairman PCB and all its BoG members must be asked to provide plausible and satisfactory answers of the following unlawful payments and mismanagement in the affairs of PCB and PSL:

7(a). PCB must provide the following documents:

i). Complete with all annexures, Internal and external audit reports of PCB for years 2013-2014, 2014-2015, 2015-2016, 2016-2017.

ii). Complete Internal and external audit reports with annexures of PSL-1 and PSL-2.

iii). Complete and all documents demanded by the Special Audit Team of the AGP which conducted the Special Audit of the PCB in 2017 and such documents were not produced before the Special Audit Team.

8. Why a huge amount Rs.22 Crore was paid by the PCB to its five franchises from the profit of PSL-1 when:

8(a). No such payment clause was mentioned in the agreements with any franchise party?

8(b). No prior audit of PSL-1 was conducted.

8(c). No Prior audit of any franchise company was conducted before payment/release of this huge amount of Rs. 22 Crore to the five franchises.

9. Why an amount of about Rs.40 crore was paid to the five franchises on account of a one-sided and strange clause in the franchise agreement, which stated that franchises will be paid out of the income from Pool Money, a minimum of 80% income amount?

9(a). Nowhere, in any agreement, minimum limit of payment is mentioned. And the upper or maximum limit of payment was deliberately not mentioned in the franchise agreement, which caused huge, straight and strange loss to the PCB.

9(b). Accordingly, this clause resulted in unprecedentedly reduced payment to the PCB, on account of pool money income, notwithstanding the fact that initially and still now, the PSL gets all the time, resources and money (PCB paid huge amount of seed money to start PSL) from the PCB. It is reported that initially, PCB gave seed money of Rs.50 Crore for PSL venture.

9(c). Why this huge payment allowed of pool money (minimum 80% MAXIMUM NO LIMIT) to the five franchises which was also highly disproportionate to the seed money’s big share of the PCB, which it contributed at the time of establishment of PSL secretariat?

10. Why beyond agreement and unlawful Payment of Rs.5 crore was allowed to the five franchises on frivolous account of Support fund, which was highly objectionable way of dishing money unlawfully, from the income of PSL-1?

11. Why PSL-1 budgeted expenditure which was about Rs.77 crore, but actual expenditure went to almost Rs.90 crore? Again no vouchers verified, no tangible and cogent reasons were provided with documentary proof of basis of originally budgeting the expenditure and verifiable documentary evidence, of reasons of excess actual expenditure of about Rs.12 crore of Rupees.

12. Why Mr. Najam Sethi did NOT allow the auditors of the Special Audit team of the AGP office in 2017 to SEPARATELY audit the PSL-1 and PSL-2 accounts, despite Mr. Najam Sethi telling the nation on media many times that PSL-1 accounts have been audited and PSL-2 accounts were under audit? What actually happened when Special Audit team of AGP office went in 2017 to conduct Special Audit of PCB/PSL that only PCB’s accounts (without all marketing department’s documents) were allowed by Mr. Najam Sethi to be audited, but he continued to mislead the nation by telling over media that PSL-1 accounts have been audited and approved by the board and the audit of PSL-2 accounts will be completed by early January 2018. (link:- https://m.youtube.com/watch?v=_ZIHYxUoDIE ). Here in this video of 22 November 2017 he categorically told that PSL-1 Audit was completed and APPROVED and about the stage of audit of PSL-2 all questions of the external auditors have been replied by the PCB and provided to the external auditors, who (External Auditors) will finalise & submit their report by 1st or 2nd week of Jan.2018.

13.When reportedly PCB loaned Rs.50 Crore as seed money to start PSL and a separate secretariat was established (with Mr. Najam Sethi appointed as Chairman of PSL) and even near about Rs.4 Crore was unlawfully paid to 33 PCB senior/junior employees as PSL allowance, why now PCB did not allow audit of PSL with the Special Audit Team of the AGP office?

14. Further, there is another extremely important point that if PSL accounts were not maintained separately then false profit was declared and distributed to the five franchises, by absorbing PSL expenses into the overheads of the PCB. This act if it has happened is nothing but a deliberate financial crime and gross unlawful act for which not only Mr. Najam Sethi, but the entire members of the Board of Governors, the Audit Committee (of which Mr. Najam Sethi was also a member) and the CFO (who was also paid an hefty amount as PSL allowance) are responsible, collectively and individually.

15. Why separately and unlawfully very high amounts of about Rs.4 crore were paid to 33 employees of the PCB, who were looking after the PSL’s work as Pakistan Super League Allowance without approving Eligibility Policy? Now, who will pay back these unlawful salary disbursements to the PCB, Mr. Najam Sethi the then chairman PSL, CFO, all the members of the audit committee or all the members of the BOG, who raised no questions on these unlawful payments while approving the accounts of PSL-1?

16. Why Mr. Najam Sethi violated the ethics and norms of the corporate good governance practices by keeping himself as a member of the Audit committee of the PCB, which resulted in the audit committee of the PCB not raising any objections for not conducting a separate audit of the PCB and on other huge unlawful payments.

17. A question must be asked that why the Draft for players for PSL-2 was not held in Pakistan but held at Dubai (causing huge avoidable expenditure) when it was earlier held in Pakistan for PSL-1?

18.The approving authority of this holding of Draft for players for PSL-2 in Dubai, should be asked to refund this extra expenditure from his/her own pocket.

In the meantime, it is requested that till all these inquiries of severe financial and administrative irregularities in the PCB/PSL are finalised, the Honourable Prime Minister and the Patron of the PCB Respected Justice (Retd) Nasir-ul-Mulk Sahab is requested to immediately remove the chairman PCB and dissolve the PCB’s BOG with an ad hoc body, which should be headed by a spotless, competent and non-partisan personality, with sufficient experience of business/management/administration and enough knowledge of the game of international and local cricket.