The federal cabinet decided on Tuesday to form an inquiry committee, headed by a former judge of the Supreme Court or a high court, to examine the circumstances relating to the Broadsheet agreement and subsequent arbitration proceedings, which resulted in substantial loss to the national exchequer.
The inquiry committee, also including a senior officer from the Federal Investigation Agency (FIA), a senior lawyer appointed by Prime Minister Imran Khan and an official of the office of the Advocate General for Pakistan, will present its report and recommendation in 45 days.
The move evokes the memories of the joint investigation team (JIT) formed and tasked with presenting its report within 60 days, after the Panama Papers scandal – the leak of 2.6TB data or 11.5 million documents taken from a Panamanian law firm Mossack Fonseca in April 2016.
If Sharif family cannot respect the Supreme Court of Pakistan’s verdict, at least Maryam Nawaz should respect the judgements against her family in courts of their own “homeland” i.e the UK. Minister @ShireenMazari1 tells Maryam to have some shame! #FloppedPDMCircus pic.twitter.com/nyGxLj0SpH
— PTI (@PTIofficial) January 19, 2021
The newly-formed inquiry commission shall be empowered to summon any individual and call for the record from any organisation/department as they deem fit. The purpose of the inquiry is to establish facts, determine accountability and learn lessons for the future litigation and arbitration proceedings.
The details emerged in a post-cabinet meeting press conference by Information Minister Shibli Faraz. Science and Technology Minister Fawad Chaudhry and Human Rights Minister Dr Shireen Mazari were also present in the press conference.
Read More: Ministerial panel to dig out Broadsheet claim
Faraz, who also heads a ministerial committee formed earlier to look into the Broadsheet scandal, told reporters that it was evident from the facts entailing Broadsheet and the International Asset Recovery Limited (IAR); from the start of the agreements to the purported settlements in 2007-08; arbitration conducted, especially between 2009 till 2018 (Liability Award & Quantum Award); and various deals made during this period for political exigencies that the matter required detailed forensic investigation by experts.
The minister added that the cabinet also determined the terms of references (TORs) for the inquiry committee, which stated that there were five parts which the inquiry committee would examine and fix responsibility on all involved and consequential beneficiaries.
Federal Minister @ShireenMazari1 gives a befitting response to Maryam Safdar on her ridiculous claim for BJP funding. PDM failed miserably in serious revolution, they are now applying in the comedy category. #FloppedPDMCircus pic.twitter.com/hyUeABz3Qk
— PTI (@PTIofficial) January 19, 2021
“Panama Papers scandal started from a report of a journalist; Broadsheet case is a complete fact-based report,” the information minister said during the press conference, adding that the committee would conduct in-depth investigation into the matter.
Faraz, while criticising the Pakistan Democratic Movement (PDM), said that the opposition alliance was in search of an NRO – the Musharraf era political amnesty through the now defunct National Reconciliation Ordinance – adding that the previous NROs not only caused financial losses but also damaged the country politically.
On the occasion, Fawad Chaudhry declared the Sharif family as the “artists”, saying the way they reshaped and remodelled “corruption” and turned it into an art was “commendable”. “I want to laud their skills; there is no dearth of confidence,” Chaudhry quipped.
Taunting the PDM head, Maulana Fazlur Rehman, Chaudhry said that Maulana was suffering from loneliness as he had thought that people would come out to declare him as “Khalifa” and swear allegiance. “Go to a Hakeem, take medicine for mental stress; you will feel better,” Chaudhry said.
Mazari lambasted the PML-N Vice President Maryam Nawaz, saying that she should read the Broadsheet judgment as it would make her feel ashamed and leave speechless. Mazari said that Broadsheet scandal was a tip of the iceberg, adding that the Swiss bank account and Panama Papers scandals also revealed how the wealth of the nation was looted.
Mazari said that the government would take action after the inquiry committee submits its report in 45 days – the first week of March when Senate elections are likely to take place if they are not organised before that.
Questions for inquiry
According to the TORs, the committee will investigate the selection and appointment of the Trouvons LLC, the Broadsheet and the IAR and signing of the agreements in June 2000 between the government of Pakistan and these companies.
Secondly, it will look into the circumstances relating to the cancellation of the contracts with the Broadsheet and the IAR in October 2003. Thirdly, the committee will examine the settlement with the IAR in January 2008 and the purported settlement in May 2008 with the Broadsheet.
Fourthly, the committee has been tasked to see the manner in which the government of Pakistan pursued proceedings before the London Court of International Arbitration (LCIA) and litigated the appeal in the High Court of Justice in London.
Fifthly, the committee will inspect the process of making the payment to the claimant and protecting the government of Pakistan’s assets in the UK at the enforcement stage of the award.
All three ministers, being convener and members of the ministerial committee, have signed the document carrying TORs for the inquiry commission. Along with the TORs, the cabinet as well as the ministerial committee had raised a number of questions which they expected of the committee to find out.
Under the “Selection of Trouvons LLC, Broadsheet & IAR”, the inquiry commission has been asked to find out: “How these firms were selected? Who introduced the firm? The due diligence conducted before selection? The change from Trouvons LLC to Broadsheet? What measures were put in place to protect interests of the GOP [government of Pakistan]? Who drafted the agreement? Was it vetted internally by lawyers or independent counsel? Why the agreement was both in GOP’s name and NAB and not just NAB?”
Under the head of “Cancellation of Contract”, the commission is asked to inquire: “When NAB decided to terminate the agreement? Why not give the statutory notice period of 30 days set out in the agreement and terminate? Advice given by Kendall Freeman Solicitors? Whether their advice was negligent in any way? Whether concerns were raised with Broadsheet & IAR before cancellation and their response? Was there a response from Broadsheet’s lawyers and subsequent legal advice (if any) given by Kendall Freeman?”
Subsequently, regarding the settlements with the IAR and the Broadsheet, the committee will examine: “What were the terms of settlement and how the figures of $1.5 million and $2.25 million were arrived at? Whether due diligence was exercised during the settlement? Whether legal advice was sought at time of settlement from Isle of Man lawyer? The method of payment for settlement? The advice sought during the settlement process?”
While looking into the arbitration, the committee will see “Whether advice was sought on merits before pursuing the route of arbitration? The hiring and selection of lawyers? Criteria applied for selection? Why Howard & Sherman were sacked? How the new firm was selected? The manner in which the dispute was arbitrated? Fee structure? Any defences including sovereign immunity? Merits in appealing to the High Court in London, a number of grounds were pleaded but only one argued at the hearing, what the advice was before appealing? Whether sufficient supervision and checks and balances during litigation proceedings were adopted?”
Lastly, on “Payment at Enforcement”, the inquiry commission will investigate when did the award become final and binding and whether the process of making the payment could have been expedited.
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