SHC suspends warrants against TRG directors, says firm

TRG directors say former CEO's defamation suit was a private inter-company letter that was not circulated

The Sindh High Court (SHC) has suspended bailable warrants against the board of directors of The Resource Group International Limited (TRG) in a defamation suit filed by former CEO Zia Chishti, the company said on Friday.

Last week, a district and sessions judge in Karachi had ordered the issuance of bailable warrants for various individuals associated with the TRG.

In today’s statement filed with the Pakistan Stock Exchange (PSX), the firm said Chishti departed TRG in November 2021 after an ex-employee of Afiniti (a TRG portfolio company) testified in a US Congressional hearing of an arbitration award against him for sexual harassment and assault.

In December 2022, the US Congress released the full text of the award, which includes payment of damages of $5 million to the ex-employee, and findings of non-consensual assault and ‘battery’ during a sexual encounter and infliction of emotional distress.

Also read: Warrants issued against TRG management team

According to market sources, since his departure in late 2021, Chishti attempted repeatedly and unsuccessfully to come back into TRG, with company management thwarting those attempts as the severity of his actions and reputation do not allow for any association with TRG, the statement added.

“Those sources have mentioned that Mr Chishti is now engaging in vengeful actions, including creating an Afiniti competitor in Pakistan targeting the Chinese market (for which Afiniti has sued him in the US for intellectual property theft), and now the defamation lawsuit against TRG Directors.”

In their high court filing, the TRG’s directors argued that the basis of the alleged defamation was a private inter-company letter that was not circulated, and that the contents of the letter were based on publicly available information, such as the testimony and award.

The applicants have asked for the district and sessions court’s cognisance order to be dismissed while the suit will be next heard on March 20.

TRG is the largest technology exporter from Pakistan, with nearly $100 million in annual exports and 8,000 employees in Pakistan.

Market analysts have mentioned that at a time when Pakistan desperately needs exports and investment, it is highly unfortunate that the directors of its leading technology success story are being issued warrants at the behest of a discredited former CEO.