Axact CEO, 7 Directors Taken into Custody

Sohaib Ahmed Sheikh, CEO of Axact and seven other directors of the company were taken into custody late night by Federal Investigation Agency from Axact office in Karachi.

Decisive action was taken when FIA raided Axact’s office and found a large pile of university degrees, identification cards of students.

Axact office and officials were being questioned by FIA for over a week now for allegedly selling fake degrees of schools that don’t exist at all. Axact had denied all the allegations levelled by NYT.

FIA, after finding sufficient evidence had reportedly decided to file case against Axact and the officials.

Also Read: Inside out of Axact Case

Axact maintains that it works as back-office for universities abroad that are legal and legitimate in their respective jurisdiction. Axact’s CEO, in a message before he was taken into custody, said that Axact isn’t involved in any illegal activity and it is just offering back-office services, such as cell centre and others, for partner universities across the world.

Action against Axact was triggered last week when Ch. Nisar Ali Khan, Minister Interior asked FIA to investigate Axact for selling fake degrees. New York Times had alleged Axact for selling fake degrees, worth millions of dollars, to students across the world.

New York Times had alleged that Axact was operating some 370 school and universities that don’t exist anywhere other than the paper. Students were granted professional degrees without instituting but based on their life experiences.

Following Nisar’s orders, FIA had raided Axact’s Islamabad and Karachi office and had confiscated a notable number of computers, servers.

Update:

Shoaib Sheikh, CEO Axact, was presented in a Karachi court today, where FIA was granted physical remand for CEO of the company till June 4th, 2015. An FIR was also registered against the company for selling fake degrees.

Via Dawn

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


  • Sleepless

    This is what happens when you start taking short cuts in life. Everyone in the IT industry knew there was something fishy with Axact, I am surprised why it took so long for the government to discover what was happening? Where was SECP, FBR etc when they were paying negligible amounts in taxes or mis-declaring income? FIA should also be tasked with bringing to justice all the government functionaries who let this business run for so long?
    Is this what we have become, we find out what is happening in our own country through foreign new outlets? Where is police or military intelligence when such a scam is taking place in Pakistan?

    • Hümayun Ökhtar

      In the end dumb Govt. didn’t discover anything unless Deccan Walash Article

      • asad

        why did u spell your name fancy. desi inferiority complex?

        • Ahmed Habib

          No, like Bangladeshi do w/ names! He is from Bangladesh.

        • Hümayun Ökhtar

          I’m not in Inferiority Complex.
          Recently,I have been watching lot of Turkish movies and dramas so just for different touch i put a name of me in Turkish Words on one of the online platform.

      • Ahmed Habib

        He is pro bangladeshi nothing more, that’s why named like that; why your Imran Khan was not able to detect this as well??? This was played just a great way that no one was able to figure out. ;-)

        • It’s not IK responsibility to do it.
          It’s govt and its concerned institutions to take action against wrong doings in the country.

  • BPO

    Axact & our media both after our BPO/outsourcing industry. Watch how many more “whistleblower” will appear :( not that those companies are doing something against the law but because many of our folks don’t understand overseas businesses specially in NA….many medium and large size companies are planning to relocate to Philippines/Vietnam

  • clueless

    I still dont know exactly which laws did he violate? Money laundering? I doubt that. First we need to establish that he did a crime. But to establish a crime, we need a victim. No victim has sued him in our courts so far.
    Once crime is established, he still did not launder proceeds of his ‘crime’. He did not even try to hide his money.
    Farce Investigation Agency is just dancing to the tunes of media thugs, most of whom are NRO-blessed. Top criminals trying to take down one criminal. Cant smile enough :)

    • Sleepless

      A crime does not need to be against an individual, it can be against the state too. The state is party to the case against Axact and its CEO.
      You say he did not try to hide his money? What was he doing when he paid taxes of Rs. 26. A person earning 40,000 per month pays more tax than him – and look at his living standard.
      Where did he get the money for BOL when his company is paying peanuts in taxes?
      I am not saying that he had no help, and he was not greasing palms of the authorities concerned. But at this point in time, he is accused and an investigation is proceeding against him. Just because he employs hundreds or he wants to educate thousands does not make a hero. All the PR in the world cant make the likes of him or Malik Riaz angels.

      • So why our institutions were silent as axact is running since 2006??
        they should also be taken into account.

      • Ali

        there is no tax on income through information technology (Services), in Pakistan there are thousands of software houses who works on same pattern and without giving any tax….

  • A. Khakwani

    I can’t believe that there are people who are STILL defending Axact or condemning the actions taken against them. You have to be a very special type of idiot with a built-in tin-foil hat to not see what this company has been doing.

    • faaria

      how axactly do you know that those allegations are true? what if i say you are also involved with them…drop some fake degrees at your house ? it would mean you are also guilty?

      • A. Khakwani

        ^ That’s what I’m talking about. The living proof.

      • ImranG

        Yeah, a murder can claim the same thing while being caught in the act of murder. He can say that I was just passing by and I saw a knife in the victim’s chest and I tried to pull it out. In the case of gun he can say that I got this gun from a child and I was just playing with it and the man came forward and was shot dead. It was not my mistake.
        How dumb people can be is beyond imagination.

        • faaria

          i’m a lawyer and i see many cases like this on daily basis. Truth is that a true criminal never gets punishment. its only innocent people who get trapped in false allegations. if your system would be so fare murderers of sialkot brothers and Shahzeb Khan would already be hanged. People think they are too intelligent and know everything in the world when they are passing their judgements

          • Shahzaib Rehman

            I totally agree with you.

  • Shahbaz Younas

    Joke of the day! After 7 days FIA recovered large pile of university degrees, identification cards of students.:) What FIA is doing from very ist day why this huge quantity is not recovered earlier. Are they printing :) Is it the cause of the delay.

    • faaria

      more importantly whey Axact didn’t hide those degrees yet if they were already there? were the waiting for FIA to come and get it?

      • Rizwan

        As i said they raided at their secret office, as the user said u should be special type of idiot defending that company

        • Shahbaz Younas

          few facts & questions:
          a bailable offence no bail given, Zulfiqar Mirza charged with ATC bail given.

          ayan ali no handcuff where as axact ceo & director handcuffed is that justice

          FIA didnt probe Z & NS charges reported by BBC then why prompt investigation in case of Axact.

          Out of 10 only one unit is under investigation then why they close all 9 unit of Axact.

          • Sajid

            Other units of axaxt are not holy either, term papers, design sites, they have spread their filth everywhere.

    • Rizwan

      IF u read something read it clearly, FIA recovered fake degrees from secret office not from their head quarters.

      • Shahbaz Younas

        I am not a good reader but i can sense the conspiracy

        • Sajid

          We are the nation where every fact is a conspiracy theory. Not sure when we wake up from dream and start using our gray matter and give a deep look at ourself.

          I will not be surprised if someone blame Israel or India for the axaxt fiasco too.

  • kamran

    Did I read it fine? On the fourth line from the bottom, the word exact

    • Raja Amer Khan

      Yes, it’s a mistake. There’s one more: **Sohaib** Ahmed Sheikh

  • To hell with our own government, they are good for nothing. Not a bit surprised this was all happening under their nose and they were quiet as in many other cases. What I’m surprised about is that the agencies all around the world couldn’t track down this fraud! Last I heard, they have very strong cyber crime cells. After all it was happening with their citizens. Not a single inquiry by them pointed towards Axact. They must have been doing a great job covering their tracks (if all the accusations are correct). I’m afraid finding a bunch of blank degrees won’t be enough of a proof to prove them guilty (well, anything is possible in our judicial system) unless they somehow prove that Axact was operating those institutions. The IT company where i work do the designing of banking and health insurance statements so you will find many samples of that in our office but what does it prove? Let me know if they have any more evidence than that.. but with my little knowledge, I think Axact will come out of it just fine.