FIA Launches Inquiry into Alleged Money Laundering at IBA

Karachi – The Federal Investigation Agency’s (FIA) Corporate Crime Circle has initiated a formal inquiry into alleged money laundering involving the management of the Institute of Business Administration (IBA), Karachi. The probe, launched under the Anti-Money Laundering Act 2010, seeks extensive financial documentation from the institution, raising serious concerns about the potential misuse of public funds and donations.

According to official correspondence, the FIA has asked IBA’s Executive Director to submit audited financial statements covering the period from 2020 to 2024. In addition to financial statements, the agency has requested detailed records of grants received from both provincial and federal Higher Education Commissions (HEC), endowments and donations from domestic and foreign private donors, bank statements of IBA and its affiliated trusts, as well as utilization reports, approvals, and vouchers pertaining to grant spending. The agency is also seeking procurement records, including names of contractors and vendors engaged since 2020, and copies of trust deeds and related documents.

The inquiry reportedly stems from allegations that public institutional funds, including HEC grants and endowment donations, may have been diverted through irregular procurement contracts and subsequently laundered via investments in local and overseas properties. The FIA is particularly scrutinizing IT and infrastructure contracts that were allegedly awarded to select vendors under questionable circumstances.

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In response, an IBA spokesperson confirmed that the institution had received the FIA’s notice but described the development as “routine” and “not unusual.” The spokesperson added that similar notices have been issued to other public-sector universities and emphasized that no individual at IBA holds sole authority over financial or administrative decisions. They further stated that internal auditing mechanisms are complemented by external audits conducted by certified firms and that all financial processes are subject to pre-audit scrutiny to ensure transparency and compliance.

The investigation marks a significant development in the ongoing efforts to strengthen financial accountability in higher education institutions, particularly those receiving substantial public and private funding.