Reebok India on Tuesday filed an FIR against its former managing director Subhinder Singh Prem and COO Vishnu Bhagat for allegedly mishandling the company’s money by indulging in fictitious sales, and setting up forged accounts over the past couple of years. The financial irregularities were to the tune of Rs 8.7 billion (INR 870 crore).(Due to a typing error in the FIR, there were some reports which suggested it was a Rs 8700-crore scam.) Shahim Padath, Reebok India’s financial director, lodged the complaint at the Gurgaon police against the ex-employees.The services of Prem and Bhagat were terminated following the discovery of their illicit activities in March last. It was alleged that the two had set up four secret warehouses for storing company merchandise and eventually selling them off to ghost companies and dealers within the country.The duo, who had worked in the company for 16 years, claimed that the stored goods were defective and that they were sold to legitimate distributors, IBN Live cited a PTI report.The duo was also accused of forging bills worth Rs 860 million (INR 86 crore) on goods which were already delivered to customers in 2011 and the year before, the Economic Times said.In December 2011, it was alleged that the former executives had invoiced Rs 1.47 billion (INR 147 crore) worth of goods that were not delivered to Reebok stores.”The said products were thus stolen by accused 1 and 2 (Prem and Bhagat) and the secret warehouses mentioned above were used for storing some of such stolen products,” the FIR said.The FIR estimated the value of the “stolen” goods to be worth Rs 630 million (INR 63 crore).Reebok has also accused Singh and Bhagat of expanding the store against company instructions, through which the duo had amassed money and also operated franchise referral programs.”Almost no franchise stores were opened under the scheme despite collection of about Rs 114 crore from various investors,” the FIR said according to the report.Adidas India, which is Reebok’s integrated partner, said in a statement to IBN Live, “We are given to understand that our criminal complaint has been registered for investigation by the Indian law enforcement authorities. Please understand that we cannot provide any further details since the matter now rests with the Indian law enforcement authorities. We shall continue to cooperate with the authorities in their investigation of the matter.”
Former National Bank of Pakistan (NBP) president Syed Ali Raza. Photo: DawnPakistan’s National Accountability Bureau (NAB) on Friday arrested former National Bank of Pakistan (NBP) president Syed Ali Raza on charges of corruption in NBP’s Bangladesh branch, reports the Dawn. According to NAB officials, the Bangladeshi citizens involved in the corruption scandal include Saleemullah, Pradeep and Qazi Nizam, adds the English-language daily of Pakistan. The NAB had filed a reference against the former NBP chief and other officials for allegedly misusing their authority by granting and revising financing facilities in the NBP Bangladesh branch that caused a loss of $185 million to the national exchequer, it also says. Implementing the high court’s orders, the NAB arrested Raza and the co-accused, including Imran Butt and general manager Bangladesh Waseem Khan.During a hearing of the bail plea initiated by the former bank chief, NAB apprised the court about the losses inflicted on the national treasury by the accused.NAB further told the court that 16 individuals had been nominated in the corruption reference in all, adding that Raza and former senior executive vice president Zubair Ahmed had been granted bail earlier.