Panamagate case: NAB submits documents

Top anti-graft body alleged on Monday that the Sharif family appeared to have "fraudulently" opened fictitious foreign accounts in the name of various individuals with "connivance" of their close associates and employees in 1999 to launder and stash their "ill-gotten" wealth.
The filed documents by the NAB in Supreme Court in the Panamagate case, a copy of which is available with Business Recorder, contended that the then Chairman NAB, Lieutenant General Khalid Maqbool, had filed a reference before the Accountability Court Attock Fort against M/s Hudabiya Paper Mills Ltd (HPML) and its directors including the late Mian Sharif, Prime Minister Nawaz Sharif, Chief Minister Punjab Shahbaz Sharif, the late Abbas Sharif, premier's son Hussain Nawaz, Chief Minister Punjab's son Hamza Shahbaz, Shamim Akhtar, Sobiha Abbas and Maryam Safdar in 2000.
On February 16, a five-member larger bench led by Justice Asif Saeed Khan Khosa while hearing the Panamagate case issued directives to chairmen of the National Accountability Bureau (NAB) and Federal Board of Revenue (FBR) to come up with details of actions taken so far to probe the matter.
The Panamagate case is fixed for hearing on Tuesday (today); so a day before the proceedings of the matter, the chairman NAB submitted the copies of a number of documents including two references filed before the Accountability Court Attock Fort and final investigation report of the Federal Investigation Agency in the Hudabiya Paper Mills case and palatial houses and mansions constructed in Raiwind, Lahore.
It is important to mention that during filing an interim reference before the Accountability Court Attock on March 27, 2000, the then Chairman NAB, Lieutenant General Syed Muhammad Amjad, had included the name of incumbent Finance Minister Ishaq Dar. The latter's name was deleted before the final reference as he had become approver in the mater.
The document claimed that an interim reference against HPML directors, the late Mian Sharif, Punjab Chief Minister Shahbaz Sharif, the late Mian Abbas Sharif and Hussain Nawaz, was filed before the Accountability Court Attock, whereby it was submitted that the directors / shareholders and beneficial owners of HPML had committed acts of corruption and corrupt practices defined under Section 9 of the NAB Ordinance 1999.
"It appeared that there was an unexplained investment of Rs 642.743 million appearing in the books of HPML as share deposit money. The same belonged to the directors/ shareholders and beneficial owners of the company, which they had fraudulently amassed under the garb of foreign equity investment. Furthermore, in November 1999, the company had settled its loan with Al-Towfeek Company for Investment Funds, London, by making a payment of US $8.7 million and the source of this payment also appeared to be doubtful," the reference submitted.
Maqbool said in the reference that further investigation was carried out into the matter and in the light of additional evidence in addition to the interim reference, final reference was filed. "It appears from the evidence that in order to launder and conceal their ill-gotten wealth, accused No 3 & 4, Nawaz Sharif and Shahbaz Sharif, appeared to have fraudulently opened fictitious foreign currency accounts in the names of various individuals with the active connivance of some of their close associates and employees. The amounts that have been deposited in the said accounts stand unexplained and appear to be beyond the known source of income of the accused individuals," the reference alleged.
The then Chairman NAB Khalid Maqbool contended in the reference that the fraudulent accounts and deposits therein were used by the accused persons as collaterals to obtain loans from various financial institutions. He alleged that subsequently, the same deposits were released, en-cashed and the proceeds were used to adjust financial facilities availed by various companies owned by the accused persons. He further alleged that the amounts so en-cashed and paid were shown as equity investment in the company.
"Thus, all the accused persons in collusion and in connivance with each other appear to have committed acts of corruption and corrupt practices as defined under section 9 read with section 10 of the NAB Ordinance and the Schedule thereto," the reference said.
Another document related to reference filed against the late Mian Sharif, Shamim Akhtar and Prime Minister Nawaz Sharif claimed that NAB filed a reference before the Accountability Court in 2000. A reference had been filed against corruption and corrupt practices allegedly committed by the Sharif family by making investment on the construction of palatial mansions and buildings in Shamim Farm Raiwind, Lahore, from the money disproportionate to their known legitimate sources of income.
It was submitted before the Accountability Court that all the three persons acquired vast tracts of land upon which a number of palatial houses and mansions were constructed in Raiwind thereupon with pecuniary resources which appeared to be grossly disproportionate to their known source of income.
The NAB had asked Federal Investigation Agency to investigate the matter which said in its final report, "An area measuring 401 kanals allegedly acquired by accused No 1 & 2 (late Mian Sharif and Shamim Akhtar) has been used for the construction of palatial mansions and other ancillary building thereon. The record indicates that the land is in the names of accused No 1 & 2, a major portion of which is surrounded by a high boundary wall. The entire holding is known as the 'Raiwind Estate.'"
The FIA report claimed that as per the survey report of M/s NESPAK, the investments and expenditures on the construction of the buildings and structures erected amounted to an estimated Rs 247.352 million whereas a sum of Rs 171.130 million appears to have been paid by Prime Minister Nawaz Sharif for the construction of his own house and the house of Chief Minister Mian Shahbaz Sharif.
It added that the income of the accused persons declared in the income tax returns filed during the years 1992-2000 amount to Rs 16.806 million, Rs 21.961 million and Rs 2.422 million. The FIA report further alleged that the total income of the said accused persons during the years 1992-2000 if added appear as Rs 41.190 million, whereas the total investment made by the accused persons for the construction of the buildings amounted to an estimated Rs 247.352 million.
"Therefore the amount spent on the construction of the buildings and acquisition of the buildings and acquisition of land by the accused persons is wholly disproportionate to legitimate sources of income as reflected in the income tax returns filed by the accused persons, from time to time during the relevant period," FIA report revealed.
The then Chairman NAB prayed the Accountability Court, "It is therefore prayed that the accused, Mian Sharif, Shamim Akhtar and Mian Nawaz Sharif, may be tried and punished in accordance with the provisions of the NAB Ordinance and law." Other documents filed in the matter include judgement of the Lahore High Court which barred the NAB from reinvestigating the matter of HPML and affidavits of the facts.