SC forms Panamagate-style JIT to probe fake accounts case

Representatives of intelligence agencies to be included in new JIT; Zardari and others accused in the case

ISLAMABAD: The Supreme Court (SC) on Wednesday ordered formation of a Joint Investigation Team (JIT) to probe alleged money laundering of at least Rs35 billion through fake bank accounts.

Moreover, further investigation into alleged fake accounts scam has revealed another company, namely M/s Landmark, allegedly owned by former president Asif Ali Zardari and his sister.

Resuming the hearing of the suo motu case, the three-member bench led by Chief Justice Saqib Nisar decided to form the JIT on the request of Federal Investigation Agency (FIA) Director General Bashir Memon, who said the FIA team lacked the capacity to make the probe more extensive.

The new investigation team will comprise representatives from the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), National Accountability Bureau (NAB), Federal Board of Revenue (FBR) and Inter-Services Intelligence (ISI).

However, it is yet to clear whether representatives of the Military Intelligence (MI) will be included in the JIT or not.

The members will be nominated by the apex court and the team will submit a fortnightly progress report to the Supreme Court. The Rangers will give protection to the JIT members who will probe into the matter in the province. The written order regarding formation of the JIT and Terms of References (ToRs) is yet to issue by the apex court.



Last year, the SC formed the JIT to probe the Sharif family’s assets located abroad. On the basis of that report, Nawaz Sharif was disqualified as member of National Assembly and subsequently he was convicted on the basis of evidences collected by same JIT.

However, the Supreme Court led by Chief Justice of Pakistan Mian Saqib Nisar did not form the JIT to verify the documents shared by incumbent prime minister Imran Khan to justify his money trail to purchase Bani Gala land.

When the bench on Wednesday inquired about reasons regarding the inclusion of members of intelligence agencies, the FIA DG said the FIA lacked technical expertise required to probe the matter.

Stressing serious security threats, Memon said the intelligence agencies’ support was needed keeping in view the prevailing situation in Sindh and behaviour of the accused.

Likewise, they have connection with the provincial government. “We have serious security threats,” he adds.

He also requested the top court to transfer the investigation and trial to Islamabad from Sindh.

“Have you received any threat from one of the accused?” asked Justice Umar Ata Bandial.

Later, the bench observed that the Rangers would be asked to provide security to the JIT members.

Justice Nisar also observed that the top court was in search of ‘angels’ who deposited and withdrew Rs35 billion from the fake accounts.

“We want to know who owned the money -- where it came from and where it went. We are trying to ascertain the truth and find out that who got this money.”

Sustaining an objection raised by defence counsel Aitzaz Ahsan, the top court excluded FIA JIT head Najaf Mirza from the new investigation team.

Ahsan, Shahid Hamid and Farooq H Naek, the counsels for different respondents accused persons, raised separate objections over the formation of the new JIT.

However, the top judge remarked that the Supreme Court can constitute a JIT to ensure a transparent inquiry. “There are no impediments to stopping the Supreme Court from forming the JIT,” he added.

Justice Nisar also inquired why Majeed and his son Abdul Ghani Majeed should not be brought to Islamabad for medical checkup. Citing the Panamagate verdict and Article 10(a) of the Constitution, Shahid Hamid said the court could not go beyond as the matter was already under the FIA investigation.



He said the “Rs35 billion” figure was “vastly exaggerated” by the FIA and asked the top court to refrain from stamping on the agency’s request to form a JIT. “It will give a wrong perception in public eyes.”

The counsel stated that the media trial of his clients is going on as FIA comes with new report on every hearing, which publishes in the press.

The chief justice however said that they will not allow mudslinging as they may give observations about the media coverage in the matter.

“We are developing a new jurisprudence wherein an agency lacking expertise can seek assistance from other agencies,” said the CJP.

He also said it is a fundamental right of public that the looted money should be brought back, adding the Supreme Court may stop trial court proceedings in this matter.

When Justice Nisar inquired why defence was shying away from constituting the JIT, Ahsan said the top court ‘generally’ did not intervene in matters where a challan had been submitted in a trial court after the registration of FIR, adding the Supreme Court used same practice since 1977.

Meanwhile, The Federal Investigation Agency (FIA) has discovered a company, namely M/s Landmark, which is owned by former president Asif Ali Zardari and his sisters.

“One of the hard disks during the raid at Ghotki was forensically analysed. The analysis discovered a company -- M/s Landmark -- which is a partnership firm between Asif Ali Zardari, Faryal Talpur and Azra Fazal. The firm is maintaining account: 12-31-20620-714-124781, at Summit Bank, DHA Phase Branch Karachi.

“The scrutiny of account reveals that the account was opened in 2013 and funds are deposited in the shape of pay orders of UBL and ABL under different individuals/CNIC available.

“In 2015, the last amount which is 4,736,924 rupees which was converted into CDR and transferred into account of M/s Zardari Group”, says the progress report submitted by the FIA in the suo motu case related to the transfer of Rs35 billion through fake accounts.

It is also claimed that Rs543 million was deposited in fake accounts which is allegedly maintained by the Zardari Group. Later, Rs180 million was withdrawn from the fake accounts.

The report also reveals that another company, namely National Gases (Pvt) Ltd., was incorporated in the name of Muhammad Adil Khan, CEO and number of shareholders.

From 2015, shares are being transferred in the name of Sara Tareen and Khawaja Ali Kamal Majeed, (now both directors of the NGS) along with Muhammad Ali Khan.

“The shareholding of M/s NGS is increasing every year. This company was figured out during forensic analysis of backup hard drives seized in a raid at Khoski Sugar Mills on August 26. The transactions of the company along with its role in laundering money are being analysed.”

It is also informed that the bulk of cash is withdrawn from fake accounts under genuine/fake signature of multiple persons, whose CNICs are also available.

“In the same time period, bulk foreign currency (GBR 5,878,329) record collected so far have been transferred by the accused persons/directors of M/s Omni Group and their family members through foreign currency accounts maintained at different banks.”

The report states that major cash deposits in those foreign currency accounts are held by the same individuals who have been withdrawing the cash from the fake accounts, which establishes the fact that kickback money has been laundered through foreign currency accounts.

Investigation in this regard is underway and the record is awaited from banks as it is suspected that foreign currencies have been arranged illegally in violation of Section 4(i) of the Foreign Exchange Regulations Act 1947 and deposited in the foreign currency accounts of the accused directors of Omni for onward transfer in their accounts maintained overseas.”

The FIA also informed the court that it appears that the funds were moved overseas illegally through Hawala on the basis of evidence like bulk cash is withdrawn from the fake accounts, connection of accused persons with a exchange company and transfer of funds through cheques having handwritten marks on the back of cheques (Rs60 million so far). These cheques have been transferred in five bank accounts of a private bank maintained at Peshawar and other banks.

The transactions suggest that the accounts pertain to Hawala operators.