Pakistan raids 'fake degree factory'

Islamabad

Pakistani investigators yesterday carried out raids on a firm accused of running a global fake degree empire, officials said, confiscating computers and holding employees for questioning as the scandal deepened.

 The firm Axact was accused by the New York Times of running a network of hundreds of websites for phoney universities complete with paid actors for promotional videos, as part of an elaborate scheme that generated tens of millions of dollars annually.

 Federal Investigation Agency (FIA) officers swooped on the Karachi headquarters of the company, seizing equipment and records and expelling employees from the building, a member of the raiding party said on condition of anonymity.

 Meanwhile the company's Rawalpindi office has been sealed and employees were being questioned at the site, an official said.

 The same official had earlier said that two employees had been arrested, but later clarified they were being quizzed and had not been charged with a crime.

 "The raid is still ongoing," Mehmood ul Hassan, acting director of the FIA's Cyber Crime Wing said.

 "Our team is gathering evidence. Our director general will release all details about the raid once it's completed."

 The move came shortly after Interior Minister Chaudhry Nisar Ali Khan told the agency to probe "if the said company is involved in any such illegal work which can tarnish the good image of the country in the world".

 The report by the New York Times, which quoted former employees and analysed more than 370 websites of fake universities, accreditation bodies and other purported institutions, sparked a wave of criticism on social media even as the company denied wrongdoing.

 Axact's media venture named Bol is set to launch a news channel, featuring leading TV anchors and journalists lured from previous employers by high salaries, heightening interest in the story.