NICL scam: Moonis Elahi faces uphill task for freedom

Prosecution witnesses withdraw statements but noose tightens around Moonis.

LAHORE:

The acquittal of Moonis Elahi, a Pakistan Muslim League-Quaid (PML-Q) leader and member of the Punjab Assembly, in the multi-billion-rupee National Insurance Company Limited (NICL) scam is in jeopardy despite the withdrawal of eight prosecution witnesses, sources familiar with the matter told The Express Tribune.

According to sources, a handwriting expert confirmed that Elahi’s manager, Abdul Malik, had written a letter opening a fake bank account meant for Elahi’s use and that the two original account holders had mysteriously disappeared from their residences.

The NICL investigation team had uncovered a trail of payments to Elahi’s accounts and arrested Malik on charges of withdrawing Rs320 million from two Allied Bank Limited accounts opened under the names of non-existent firms Khadim Traders (supposedly owned by Khadim Rasool) and Adil Traders (supposedly owned by Adil Manzoor).

Sources claim that the transfers of four members of the NICL investigation team and the suspension of lead investigator Zafar Qureshi were meant to hinder and ultimately end the investigation.

Eight prosecution witnesses, all of whom are bankers, appeared before Magistrate Irfan Basra and denied giving any statement to the FIA. The witnesses also denied that Malik had opened two accounts. They said that the accounts in question were personally opened and operated by Adil Manzoor and Khadim Rasool.

Earlier, all eight bankers had said that Malik had opened two accounts and withdrawn Rs320 million which was then transferred to principal accused in the case Mohsin Habib Warraich.

According to the FIA, Malik had confirmed the withdrawal but later withdrew his statement.

Meanwhile, Khadim Rasool and Adil Manzoor claimed that they do not have any firms and knew nothing about these accounts or Warraich. According to sources familiar with the matter, after recording their statements, however, both men disappeared.

Judge refuses to hear case after defence intimidation

The special judge banking offence (central) Malik Abdul Rasheed refused on Tuesday to hear the proceedings of the NICL case against Moonis and forwarded the matter to the chief justice of the Lahore High Court (LHC). The judge transferred the case after Moonis’ lawyers challenged whether the court had jurisdiction to record Malik’s statement. Even though Malik agreed to record his statement, he later withdrew his assent after defence lawyers objected.

The lawyers insisted that the judge announce a verdict on Moonis’ acquittal application based on the testimony already heard, after which the judge complained that the lawyers were trying to influence his verdict. He then referred the case file to the LHC chief justice to decide which other court should hear the case.

(With additional reporting by Rana Yasif in Lahore)

Published in The Express Tribune, July 6^th, 2011.