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Fake accounts case: SC directs cabinet to reconsider list of 172 individuals placed on ECL
ISLAMABAD: The Supreme Court (SC) on Monday directed the federal cabinet to reconsider the list of 172 individuals – named in the JIT report – who were added on the Exit Control List (ECL) after earlier expressing displeasure over the act as the court resumed the hearing of the fake accounts case.
Pakistan Peoples Party’ top leadership including Asif Ali Zardari, Bilawal Bhutto Zardari, sister Faryal Talpur, Chief Minister Sindh Murad Ali Shah are among those placed on the no-fly list as the Federal Investigation Agency (FIA) continues its probe in the Rs42 billion money laundering scandal.
Chief Justice Saqib Nisar had summoned Minister for State for Interior Shehryar Afridi after the attorney general failed to give a satisfactory answer and also sought the approved summary by the cabinet regarding the ECL list. Shortly after being summoned, the minister appeared before the two-member bench.
Zardari’s defence counsel, Farook H Naek, recused himself from the case. “The JIT has declared Naek as a suspect. Hence he has recused himself from representing Zardari and Talpur,” defence team member Latif Khosa informed the bench. The apex court, however, rejected Naek’s plea and directed him to continue representing Zardari and Talpur.
Justice Nisar also said that the apex court will not allow injustice. “Place the premier’s name on the ECL as well. We should put Punjab Chief Minister Usman Buzdar on it too. The top court has not verified the JIT report yet. Naek cannot be prevented from representing the case.”
The chief justice was annoyed by the federal cabinet discussing the JIT report. “How is the matter their concern?”
The chief justice inquired why Murad’s name was placed on ECL and asked if the government expected him to set his duties as chief minister aside and run away.
“We will not allow the toppling of the Sindh government on the basis of the JIT report.”
Advocate Faisal Siddiqui, representing FIA, said the JIT report did not recommend the arrest of any accused person nor did it suggest disqualification in view of the findings. He added the JIT had requested further probe in nine cases.
Siddiqui stressed that the JIT adhered to the mandate it was given. “Arresting suspects does not fall in the JIT’s jurisdiction.”
Justice Ijazul Ahsan remarked that the bench was not angered over JIT but the media trial in progress. The apex court said it will also review the media’s reporting of the case. Taking exception to the media commentary on the matter, Justice Nisar summoned Pakistan Electronic Media Regulatory Authority (PEMRA) chief.
Justice Nisar also expressed his intention to wrap up the case before January 15 – he retires on January 17. He asked if the respondents were facing difficulties while submitting replies. The bench has given Zardari and Talpur one week to submit a reply over the JIT report.
The fake accounts saga
In December 2015, the Federal Investigation Agency began a discreet investigation into certain bank accounts through which multi-billion rupee transactions have been made. According to FIA sources, information regarding the fake accounts came to the fore when an intelligence agency picked up a prominent money changer in an unrelated case.
As the monitoring and investigation of these suspicious accounts continued, it surfaced that five of these accounts in two banks – the Sindh Bank and Summit Bank – had been used for transactions worth around Rs15 billion.
Investigation showed the accounts were operated by fake companies. Funds were credited into these accounts from contractors with multi-billion rupee contracts with the Sindh government. The money was found to have been transferred to accounts of companies owned and operated by the Omni Group, whose chairperson, Anwar Majeed, is a close aide of Pakistan Peoples Party (PPP) co-chairperson Asif Ali Zardari. Another beneficiary was Nasir Lootah, the chairperson of Summit Bank.
The probe, however, was shelved. It resumed almost a year and a half later. FIA’s State Bank circle initiated a formal inquiry in January, 2018.
By June, the FIA had several high-profile names on its list but was unable to make headway – for several reasons. It was at his point that the Supreme Court intervened. Chief Justice Mian Saqib Nisar took suo motu notice of the ‘slow progress’ in the money laundering case.
In July, Zardari’s close aides; Hussain Lawai, Taha Raza and two others were arrested. Subsequently, the first case was registered in the mega-corruption scandal.
The FIA submitted its report to the apex court on July 8 which revealed a web of companies and accounts that were being used to transfer billions of rupees.
In all, 29 accounts were identified that received payments, totaling at least Rs35 billion.
In August, Omni Group chief Anwar Majeed was arrested along with son Abdul Ghani Majeed when they returned to the country on being summoned by the apex court. They are now on judicial remand.
Meanwhile, Asif Ali Zardari and Faryal Talpur have appeared before the investigators and have since secured interim bail from the Banking Court. The last hearing of the case was on December 21, when the duo got their fourth extension in the bail till January 7.
Amid complaints from the FIA and barbs flying in the Supreme Court, CJP Nisar ordered the formation of a Joint Investigation Team to quicken the pace of the investigation. One of FIA’s principal complaints was the lack of cooperation from the Sindh government.
The JIT report in a nutshell
According to the report, the JIT identified 11,500 bank accounts and 924 account holders at the start of their investigation.
Its experts generated 59 Suspected Transaction Reports (STR) and 24,500 Cash Transaction Reports. That means the transactions were flagged as suspicious.
Due to the high quantum of transactions, the JIT decided on a threshold of Rs10million “to track, follow and minutely investigate the flow of funds beyond the immediate counterparties and determine the source of funds and ultimate beneficiaries.”
It questioned 767 individuals, including Zardari and Talpur, while Bilawal submitted written responses.
It has since had the names of 147 individuals placed on the Provisional National Identification List, which would allow authorities to identify if those individuals try to enter or exit the country through an airport. After the report was submitted to the SC, the names of 172 individuals have been placed on the no-fly list by the interior ministry on the JIT’s request.
The investigations have focused on 32 accounts of 11 fake entities. The first account, belonging to M/S Lucky Enterprises, opened in January 2010 and remained active till January 2017. It was used for 13,809 transactions.
The investigation uncovered that the 11 sole proprietorship entities were registered in the names of low-level employees of the Omni Group, as well as random individuals including a deceased person. All the accounts were operated by Omni Group executives.
A thorough review of the JIT report shows that representatives of State Bank and Securities and Exchange Commission of Pakistan (SECP) played a vital role in the investigation and preparation of the final report and recommendations
ISLAMABAD: The Supreme Court (SC) on Monday directed the federal cabinet to reconsider the list of 172 individuals – named in the JIT report – who were added on the Exit Control List (ECL) after earlier expressing displeasure over the act as the court resumed the hearing of the fake accounts case.
Pakistan Peoples Party’ top leadership including Asif Ali Zardari, Bilawal Bhutto Zardari, sister Faryal Talpur, Chief Minister Sindh Murad Ali Shah are among those placed on the no-fly list as the Federal Investigation Agency (FIA) continues its probe in the Rs42 billion money laundering scandal.
Chief Justice Saqib Nisar had summoned Minister for State for Interior Shehryar Afridi after the attorney general failed to give a satisfactory answer and also sought the approved summary by the cabinet regarding the ECL list. Shortly after being summoned, the minister appeared before the two-member bench.
Zardari’s defence counsel, Farook H Naek, recused himself from the case. “The JIT has declared Naek as a suspect. Hence he has recused himself from representing Zardari and Talpur,” defence team member Latif Khosa informed the bench. The apex court, however, rejected Naek’s plea and directed him to continue representing Zardari and Talpur.
Justice Nisar also said that the apex court will not allow injustice. “Place the premier’s name on the ECL as well. We should put Punjab Chief Minister Usman Buzdar on it too. The top court has not verified the JIT report yet. Naek cannot be prevented from representing the case.”
The chief justice was annoyed by the federal cabinet discussing the JIT report. “How is the matter their concern?”
The chief justice inquired why Murad’s name was placed on ECL and asked if the government expected him to set his duties as chief minister aside and run away.
“We will not allow the toppling of the Sindh government on the basis of the JIT report.”
Advocate Faisal Siddiqui, representing FIA, said the JIT report did not recommend the arrest of any accused person nor did it suggest disqualification in view of the findings. He added the JIT had requested further probe in nine cases.
Siddiqui stressed that the JIT adhered to the mandate it was given. “Arresting suspects does not fall in the JIT’s jurisdiction.”
Justice Ijazul Ahsan remarked that the bench was not angered over JIT but the media trial in progress. The apex court said it will also review the media’s reporting of the case. Taking exception to the media commentary on the matter, Justice Nisar summoned Pakistan Electronic Media Regulatory Authority (PEMRA) chief.
Justice Nisar also expressed his intention to wrap up the case before January 15 – he retires on January 17. He asked if the respondents were facing difficulties while submitting replies. The bench has given Zardari and Talpur one week to submit a reply over the JIT report.
The fake accounts saga
In December 2015, the Federal Investigation Agency began a discreet investigation into certain bank accounts through which multi-billion rupee transactions have been made. According to FIA sources, information regarding the fake accounts came to the fore when an intelligence agency picked up a prominent money changer in an unrelated case.
As the monitoring and investigation of these suspicious accounts continued, it surfaced that five of these accounts in two banks – the Sindh Bank and Summit Bank – had been used for transactions worth around Rs15 billion.
Investigation showed the accounts were operated by fake companies. Funds were credited into these accounts from contractors with multi-billion rupee contracts with the Sindh government. The money was found to have been transferred to accounts of companies owned and operated by the Omni Group, whose chairperson, Anwar Majeed, is a close aide of Pakistan Peoples Party (PPP) co-chairperson Asif Ali Zardari. Another beneficiary was Nasir Lootah, the chairperson of Summit Bank.
The probe, however, was shelved. It resumed almost a year and a half later. FIA’s State Bank circle initiated a formal inquiry in January, 2018.
By June, the FIA had several high-profile names on its list but was unable to make headway – for several reasons. It was at his point that the Supreme Court intervened. Chief Justice Mian Saqib Nisar took suo motu notice of the ‘slow progress’ in the money laundering case.
In July, Zardari’s close aides; Hussain Lawai, Taha Raza and two others were arrested. Subsequently, the first case was registered in the mega-corruption scandal.
The FIA submitted its report to the apex court on July 8 which revealed a web of companies and accounts that were being used to transfer billions of rupees.
In all, 29 accounts were identified that received payments, totaling at least Rs35 billion.
In August, Omni Group chief Anwar Majeed was arrested along with son Abdul Ghani Majeed when they returned to the country on being summoned by the apex court. They are now on judicial remand.
Meanwhile, Asif Ali Zardari and Faryal Talpur have appeared before the investigators and have since secured interim bail from the Banking Court. The last hearing of the case was on December 21, when the duo got their fourth extension in the bail till January 7.
Amid complaints from the FIA and barbs flying in the Supreme Court, CJP Nisar ordered the formation of a Joint Investigation Team to quicken the pace of the investigation. One of FIA’s principal complaints was the lack of cooperation from the Sindh government.
The JIT report in a nutshell
According to the report, the JIT identified 11,500 bank accounts and 924 account holders at the start of their investigation.
Its experts generated 59 Suspected Transaction Reports (STR) and 24,500 Cash Transaction Reports. That means the transactions were flagged as suspicious.
Due to the high quantum of transactions, the JIT decided on a threshold of Rs10million “to track, follow and minutely investigate the flow of funds beyond the immediate counterparties and determine the source of funds and ultimate beneficiaries.”
It questioned 767 individuals, including Zardari and Talpur, while Bilawal submitted written responses.
It has since had the names of 147 individuals placed on the Provisional National Identification List, which would allow authorities to identify if those individuals try to enter or exit the country through an airport. After the report was submitted to the SC, the names of 172 individuals have been placed on the no-fly list by the interior ministry on the JIT’s request.
The investigations have focused on 32 accounts of 11 fake entities. The first account, belonging to M/S Lucky Enterprises, opened in January 2010 and remained active till January 2017. It was used for 13,809 transactions.
The investigation uncovered that the 11 sole proprietorship entities were registered in the names of low-level employees of the Omni Group, as well as random individuals including a deceased person. All the accounts were operated by Omni Group executives.
A thorough review of the JIT report shows that representatives of State Bank and Securities and Exchange Commission of Pakistan (SECP) played a vital role in the investigation and preparation of the final report and recommendations
