Rehman Malik Alleged of Running VoIP Telephony Network

Rehman Malik, Minister Interior, is alleged of grey telephony revenues, causing Pakistan a direct loss of Rs. 30 billion a year, in a report published by The Dawn today.

Dawn revealed that one of the leading beneficiaries of the grey, Rodcom Europe (now being renamed as Hollywell Solutions) is chaired by Rehman Malik, the sitting interior minister. However, company website says “Dr. A. Rehman Malik” as its chairman.

On other hands, (as claimed by Dawn) Rehman Malik’s didn’t reply to reporter’s query for knowing his viewpoint over the allegations.

Newspaper connected the hike in approved settlement rates (ASR) with PPP’s government and said that despite the plans of lowering it, PTA increased ASR as soon as PPP joined the government in February 2008.

Dawn had tied Rehman Malikd with Rodcom Europe in the past as well.

Following is excerpt from Dawn story

London-based Rodcom Europe –  a specialized VOIP (voice-over internet protocol) company established in 2001 “offering a limited number of high quality routes to a limited number of high quality customers”, according to the company website.

It says its early destinations were mainly to Europe and “Pakistan soon joined them when VOIP licences were first issued in 2003.” Rodcom’s activities in Pakistan, the website claimed, “have grown to a level where we are now one of the top five senders of Pakistan calls in Europe

The lack of transparency on the part of the government makes it next to impossible to figure out whether or not Rodcom’s activities are legal. The government contends that not all VOIPs are illegal, but the PTA refuses to provide details about operators registered with them.

This, observers conclude, suggests that most of them are operating in violation of rules and without paying taxes.

Regardless of whether or not Rodcom is operating legally, Rehman Malik’s ownership of the company raises moral and ethical questions. “That a federal minister who oversees law enforcement agencies which are required to curb such illegal telephone calls, should own a company involved in this business is clearly a conflict of interest,” an observer said.

Repeated attempts to get Mr Malik’s point of view failed; text messages to his mobile telephone remained unanswered. Repeated efforts to get his version though his personal staff members — Mohammad Shoaib, Zafar, Latif, Abdul Majeed and Nawazish Ali — over four weeks also remained futile. His ministry does not have an official spokesman at present.

PTA has reduced the ASR with the publicly announced objective of curbing grey traffic. For instance, the PTA reduced rates from about 20 US cents per minute to 7 cents per minute in the first three years of telecom market liberalization until late 2007.

However, the PPP-led government reversed this trend; the ASR were increased to 10 cents in May 2008 and then to 12.5 cents in February 2009. Though in July 2009 these were brought down to 10.5 cents per minutes, they still remain higher than they were before the PPP came into power. Furthermore, an additional tax, the access promotion contribution (APC), also witnessed a hike from two cents to five cents per minute in 2008 and then to 7.5 cents in February 2009. This too was reduced to 5.5 cents in July last year, where it still remains higher than what it was in 2008.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Waqas

    saray kay saray chor hain .. VOIP se user ko faida hai aur PTA ko nuksan..
    India jaisay countery main gray routing Illegal nai hai ..
    sari duniya main log VOIP pay aa rahay hain , per nai humari government paise bannay main lagi hoi hai.
    wake up PPP

  • Goldenshakehand

    It is no doubt a sensitive issue. NAB should take necessary action against the culprit.

  • bonga

    We, the fraternity of Pakistan’s telecom industry have known for a while that Rehman Malik is running the biggest illegal VoIP gateway in Pakistan. However, like most incidents of white collar corruption, the influential remain unaccountable. As a matter of fact, an illegal gateway in Karachi was busted in May 2008 where thousands of SIMS were being used to illegally terminate international traffic. While PTA officials initially claimed it a big success, they had to scramble to cover up the issue as it was later discovered that the gateway belonged to Rehman Malik.

    It was also Rehman Malik who had Gen. Shehzada Alam’s tenure at PTA’s Chairman terminated and planted an incompetent, weak, yes-man in the name of Dr. Mohammed Yaseen. Dr. Yaseen had to oblige Rehman Malik by raising the ASR, and is also busting Rehman Malik’s competitors such that the sitting Federal Minister can make maximum amount of money.

    Another sad saga in Pakistan’s dark political affairs!

  • The Truth

    I can hear the packing of suitecases as we speak. Run Malik, Run !! NAB, the PTA and other Govt agencies will be after you !!!

    If you want to complain please report to ISI Headquaters to submit your complaint in person, dont make plans for dinner.

  • Rehan Ahmad

    “Wah Ray A. R Malik teri kon say kull seedhi”
    PPP Govt. is making money and hide in Suitecase and ready to run… but PML(N) is not taking chance to handle this situation so they decided to keep them going till next 2 and half years….
    Shame on you PPP and PML(N)
    No body is sincere with Pakistan….
    Rehman Malik Sahab kuch to khuda ka khouf khayen.

  • K.A.

    Indians can call their countries at 1 or even less than 1 US cent /minute, their government has lowered call termination charges so much that Grey telephoney operators are forced to obtain routes from legal VoIP licencees in India, and therefore money goes in pckets of Government of India and indians abroad enjoy very cheap calling rates and have strong connection back with their people.

    on the other hand Pakistanis abroad don’t call much coz of 10 times higher termination rates by PTA and by declaring customer VoIP use completely illegal.

    I will insist that we all should pray that this PPP government must go as their are only businessmen, they are not leaders. Calling them leaders is an insult to the word “leader”.

    There is a need to lower ASR to 1cent a minute or less so overseas Pakistanis call more to Pakistan and make strong bond with their loved ones in Pakistan. Govt will still earn alot and wont loss.

  • K.A.

    I woud like to add that owning a VoIP company in Europe isn’t a sin, no doubt it is violation of Pakistani rules if this company uses local grey telephony routes. Also there is need to invetigate from where Mr. A.R.M. brought this money to start a VoIP business as he served all his life as a Govt servent.

  • Coral

    That great. Keep it up Rehman Malik, Don’t worry nothing gonna happen. Pakistan is a safe heaven for robbers.

  • _____le!

    [Comment Edited]

  • Ali Imran

    No wonder why they don’t give ZONG LDI licence despite the assurance of president to Chinese delegation several times

  • Usman

    Every things is against, no neutral view point, one should not be saying anything without knowing the reply of the accused or at least getting the neutral view point.

    Thanks to all who wasted time on commenting.. haha

  • Saleem Bakir

    Good Show Rehman Malik – You are an azwhl

  • Adeel

    who Rehman Malik, the _____? Oh, we expect same stuff from all PPP co-called leaders… Atleast i’m not surprised by this new money scam from any PPP Minister/leader… Infact, they are in practice to loot every profitable resource of Pakistan.

    what we see is that they have robbed profitable PIA, Railways, Steel Mills and others and converted them into heavy loss.

    Infact, we’re most ignorant nation of the world, even after knowing that PPP was the corrupt ever govt. of Pakistan’s history, we voted them, just for the sympathy of BB, who’s murdereds are not yet caught till the writing of these lines :((

    [Comment Edited]

  • PakPatriot

    RODCOM EUROPE LIMITED
    ARMSTRONG WATSON CENTRAL HOUSE
    47 ST PAULS STREET
    LEEDS
    LS1 2TE
    Company No. 04281562

  • Baaghi

    Naam Rehman Ka, Kaam Shaitaan Ka……..