Rs 256 billion written off loans: Supreme Court to decide status of SBP circular

The Supreme Court on Monday directed State Bank of Pakistan (SBP) to set up a commission to probe into the Rs 256 billion bank loans cases, got written off and pocketed by a few bigwigs. A three-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry with Justice Sair Ali and Justice Ghulam Rabbani was hearing a suo motu case pertaining to Rs 256 billion waved off loans from 1971 to 2009.
The court also ordered SBP to inform about appointment of former judge Jamshaid Ali as head of the probe team, as was suggested by the apex court in its previous hearing. Advocate Ali Zafar told the court that SBP governor had talked to Justice Jamshaid about heading the probe commission.
The bench in its order observed that the court considers it appropriate to first determine status of Circular 29 of SBP and then refer it to a commission being set up to probe the issue under the chairmanship of Jamshaid Ali Khan, a former judge of the Supreme Court.
The bench appreciated the suggestion that a retired director general of Federal Investigation Agency or a high serving officer of such an agency should be included as member of the commission as investigation of the white collar crimes requires special skills. Additional Attorney General KK Agha suggested that the commission should present its interim report before the apex court within 90 days instead of 180 days which the central bank had suggested in its earlier report. The court accepted the AAG suggestion and ordered the commission to present its report within 90 days.
The court observed that the foremost duty of the commission would be to decide legal value of Circular No 29. Agha informed the court that he had sent some suggestions and recommendations to the government regarding written off loans but no response was received yet. Besides, he told the bench that he had also written a brief letter to SBP governor on the issue. He said the issue involved SBP and its officers that had failed to discharge their obligations, as well as other commercial banks officers who failed to lend money prudently.
Meanwhile, the court was told that Syed Iqbal Haider, counsel for SBP had recently met an accident as a result his three rib bones got fractured and he was unable to attend the proceeding of the apex court on this important issue involving huge amount of national wealth plundered by handful of influential. The hearing was adjournment till May 12.