Broadsheet LLC case: AGP recommends inquiry into scam
LCIA awarded Pakistan $21m penalty over alleged fake settlements
LCIA awarded Pakistan $21m penalty over alleged fake settlements. PHOTO: FILE
ISLAMABAD:
The Attorney General for Pakistan (AGP) has recommended a probe into the alleged Broadsheet case scam, wherein the London Court of International Arbitration (LCIA) awarded a penalty of $21 million (Rs2.92 billion) to the country in the infamous Broadsheet LLC case.
Sources revealed to The Express Tribune AGP Anwar Mansoor Khan has written a letter to Prime Minister Imran Khan asking the National Accountability Bureau (NAB) for conducting internal inquiry about embezzlement of millions of dollar in the case.
It is learnt the law ministry has also separately written to the PM for inquiry.
The Broadsheet LLC, based in the Isle of Man, was hired by the NAB during Musharraf’s regime to trace out hidden assets of Pakistanis in foreign countries. NAB signed an agreement with the Broadsheet but terminated it in 2003.
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The Broadsheet’s dispute with NAB has a convoluted and colourful history. The company was established by Colorado businessman Jerry James and entered liquidation proceedings in the Isle of Man in 2005, before being dissolved and then revived.
Meanwhile, James established a Colorado company with the same name and negotiated an agreement with NAB in 2008 that purported to settle the dispute for $5 million, which NAB officials paid. He died in 2011, reportedly by jumping off the fifth-floor balcony of a Paris hotel.
A senior official in law ministry believes there is need to conduct thorough inquiry to identify the officials who had engaged Broadsheet firm on unequal terms in 2002. Likewise inquiry should be conducted about the ‘fake deal’, wherein $5 million of public money had been embezzled in 2008.
It will be interesting to determine who made the payment as whether this amount was given in the Pakistan People’s Party or Musharraf regime. Another official claims the payment of $5 million was given by then federal government and not the NAB. He says that name of renowned Pakistani lawyer as well as retired judge is also mentioned in the scam.
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Legal experts believe due to this alleged fake settlements, the LCIA awarded a penalty of $21 million to Pakistan while it is learnt millions of dollars were spent on the litigation.
According to the Global Arbitration Review (GAR), the firm’s claim against Pakistan was worth at least $600 million, but a senior official told The Express Tribune the claim was $340 million.
In July, the international arbitration body based in United Kingdom heard for four days a claim by the Broadsheet LLC against Pakistan and its anti-corruption body— NAB at the London office of Allen & Overy, said the law firm representing NAB.
Former English Court of Appeal judge Sir Anthony Evans QC heard the case as sole arbitrator in a London-seated proceeding under the rules of the Chartered Institute of Arbitrators.
In August 2016, the international tribunal judge Sir Anthony Evans upheld the Broadsheet’s arguments that the 2008 settlement was not binding on it, as James had no authority to act on the company’s behalf at the time.
The same international tribunal held that Pakistan is liable to pay damages as NAB wrongfully repudiated an asset recovery agreement with the Broadsheet and committed a tort of civil conspiracy by entering into a sham settlement with a former Broadsheet executive.
The tribunal ruled that the Broadsheet was entitled to damages in an amount to be determined. The Broadsheet was represented by Stuart Newberger of Crowell & Moring in Washington, DC.
Later, the quantum stage was started wherein the Broadsheet relied on information gathered by a joint investigation team (JIT) established by the Supreme Court of Pakistan to examine evidence concerning the Sharif family’s holdings.
The Broadsheet submitted a forensic report by expert firm, Stroz Friedberg, analysing those parts of the JIT report that were public, while Pakistan had submitted a counter-report prepared by the FTI Consulting.
Former chairman NAB General retired Amjad had also recorded his statement before the tribunal. It is learnt that a meeting has also been held among high authorities to evolve future strategy about the challenging of this award.
The Attorney General for Pakistan (AGP) has recommended a probe into the alleged Broadsheet case scam, wherein the London Court of International Arbitration (LCIA) awarded a penalty of $21 million (Rs2.92 billion) to the country in the infamous Broadsheet LLC case.
Sources revealed to The Express Tribune AGP Anwar Mansoor Khan has written a letter to Prime Minister Imran Khan asking the National Accountability Bureau (NAB) for conducting internal inquiry about embezzlement of millions of dollar in the case.
It is learnt the law ministry has also separately written to the PM for inquiry.
The Broadsheet LLC, based in the Isle of Man, was hired by the NAB during Musharraf’s regime to trace out hidden assets of Pakistanis in foreign countries. NAB signed an agreement with the Broadsheet but terminated it in 2003.
Justice Athar Minallah sworn in as IHC chief justice
The Broadsheet’s dispute with NAB has a convoluted and colourful history. The company was established by Colorado businessman Jerry James and entered liquidation proceedings in the Isle of Man in 2005, before being dissolved and then revived.
Meanwhile, James established a Colorado company with the same name and negotiated an agreement with NAB in 2008 that purported to settle the dispute for $5 million, which NAB officials paid. He died in 2011, reportedly by jumping off the fifth-floor balcony of a Paris hotel.
A senior official in law ministry believes there is need to conduct thorough inquiry to identify the officials who had engaged Broadsheet firm on unequal terms in 2002. Likewise inquiry should be conducted about the ‘fake deal’, wherein $5 million of public money had been embezzled in 2008.
It will be interesting to determine who made the payment as whether this amount was given in the Pakistan People’s Party or Musharraf regime. Another official claims the payment of $5 million was given by then federal government and not the NAB. He says that name of renowned Pakistani lawyer as well as retired judge is also mentioned in the scam.
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Legal experts believe due to this alleged fake settlements, the LCIA awarded a penalty of $21 million to Pakistan while it is learnt millions of dollars were spent on the litigation.
According to the Global Arbitration Review (GAR), the firm’s claim against Pakistan was worth at least $600 million, but a senior official told The Express Tribune the claim was $340 million.
In July, the international arbitration body based in United Kingdom heard for four days a claim by the Broadsheet LLC against Pakistan and its anti-corruption body— NAB at the London office of Allen & Overy, said the law firm representing NAB.
Former English Court of Appeal judge Sir Anthony Evans QC heard the case as sole arbitrator in a London-seated proceeding under the rules of the Chartered Institute of Arbitrators.
In August 2016, the international tribunal judge Sir Anthony Evans upheld the Broadsheet’s arguments that the 2008 settlement was not binding on it, as James had no authority to act on the company’s behalf at the time.
The same international tribunal held that Pakistan is liable to pay damages as NAB wrongfully repudiated an asset recovery agreement with the Broadsheet and committed a tort of civil conspiracy by entering into a sham settlement with a former Broadsheet executive.
The tribunal ruled that the Broadsheet was entitled to damages in an amount to be determined. The Broadsheet was represented by Stuart Newberger of Crowell & Moring in Washington, DC.
Later, the quantum stage was started wherein the Broadsheet relied on information gathered by a joint investigation team (JIT) established by the Supreme Court of Pakistan to examine evidence concerning the Sharif family’s holdings.
The Broadsheet submitted a forensic report by expert firm, Stroz Friedberg, analysing those parts of the JIT report that were public, while Pakistan had submitted a counter-report prepared by the FTI Consulting.
Former chairman NAB General retired Amjad had also recorded his statement before the tribunal. It is learnt that a meeting has also been held among high authorities to evolve future strategy about the challenging of this award.