Crackdown against officials as FBR admits to corruption in auctioning of smuggled vehicles

In a bid to reinforce transparency and institutional accountability, the Federal Board of Revenue (FBR) has launched a sweeping crackdown on the misuse of its digital auction system for confiscated vehicles.

The initiative follows alarming revelations in July regarding irregularities within the auction module of the WeBOC – tax watchdog’s web-based platform – originally introduced in August 2021 to streamline the clearance and registration of smuggled vehicles sold through official auctions.

Designed to allow Motor Registration Authorities (MRAs) to verify auctioned vehicle details online, the system was meant to reduce manual errors and prevent document manipulation. However, recent findings exposed serious breaches: out of 1,909 vehicles listed in the system, 103 were fraudulently entered using fake user credentials. Of these, 43 vehicles were successfully registered by MRAs, giving them a false veneer of legitimacy.

The probe has revealed a broader network of collusion involving car dealers and officials from registration authorities. In response, FBR has suspended two senior Customs officials — one deputy collector and one assistant collector — whose credentials were exploited in the scam.

Recognising the scale of the fraud, FBR has called for the formation of a Joint Investigation Team (JIT) comprising representatives from the Federal Investigation Agency (FIA), Customs, and intelligence services.

The JIT began its inquiry following a formal complaint filed by FBR on July 10.

On August 28, the FIA registered a First Information Report (FIR) against the implicated officers. To date, Customs Enforcement has filed seven FIRs and arrested 13 individuals linked to the scheme.

In an official statement, FBR reaffirmed its commitment to rooting out corruption. “We remain fully committed to upholding the integrity of public service at all levels and at all costs,” it said.