Court to indict Shehbaz, sons on February 18

PML-N leaders face charges of laundering approximately Rs16 billion in sugar scandal

LAHORE:

A special court in Lahore on Thursday decided to indict PML-N President Shehbaz Sharif, his sons Hamza and Suleman and others on February 18 for their alleged involvement in laundering around Rs16 billion in the sugar scam case.

The Federal Investigation Agency (FIA) had booked Shehbaz, Hamza and Suleman Shehbaz in November 2020 under sections 419, 420, 468, 471, 34 and 109 — financial fraud, impersonation and forgery — of the Pakistan Penal Code and 5(2) and 5(3) — criminal misconduct — of Prevention of Corruption Act and r/w 3/4 of Anti Money Laundering Act.

According to the FIR, deposits of over Rs25 billion (2008- 18) were received in bank accounts of various low-wage employees of Ramzan Sugar Mills as well as Al-Arabia Sugar Mills. The accounts of these fake companies were set up and controlled by the Sharif Group, the FIR added.

Suleman is absconding and residing in the UK.

Fourteen others have been named in the FIR under sections 5(2) and 5(3) (criminal misconduct) of the Prevention of Corruption Act, read with 3/4 of the Anti-Money Laundering Act. On January 27, the special court had extended the pre-arrest bails of Shehbaz and Hamza.

During Thursday’s proceedings, the FIA requested the court to cancel the pre-arrest bails granted to Shehbaz and his son. The FIA counsel said he was ready to present arguments for the cancellation of the bails. The court ordered the agency to provide copies of the challan to the suspects.

Later, the court issued a short order, saying that it would indict the suspects on February 18.

On January 14, a banking offences court had allowed an application filed by the FIA against its jurisdiction to hear the money laundering and sugar scam case against the PML-N president and his son. The court held that the matter did not fall in its jurisdiction and returned the challan to the FIA. It directed the agency to file it before the court concerned. The FIA had then filed the challan before Lahore’s special court (Central-I).

In December last year, the FIA had submitted a challan against the PML-N president and Hamza to a special court for their alleged involvement in laundering an amount of Rs16 billion in the sugar scam case.

“The investigation team has detected 28 benami accounts of the Shehbaz family through which money laundering of Rs16.3bn was committed during 2008-18. The FIA examined the money trail of 17,000 credit transactions,” read the agency’s report.

The amount was kept in “hidden accounts” and given to Shehbaz in a personal capacity, it added. The FIA alleged that this amount of Rs16 billion had nothing to do with the sugar business of the Shehbaz family.

“The money received from the accounts of low-wage employees by Shehbaz was transferred outside Pakistan via hundi/hawala networks, ultimately destined for beneficial use of his family members.”