Axact scandal: SHC says it will ascertain the source of income

Plaintiff argues employees’ could not be paid due to seizure of accounts

KARACHI: The Sindh High Court (SHC), hearing a petition against the seizure of Axact’s bank accounts, observed on Friday that though its sympathies are with the employees of Bol TV it will have to ascertain where the money has come from.

A two-judge bench, headed by Justice Muhammad Ali Mazhar, was hearing an appeal filed by Ayesha Shoaib Sheikh against seizure of Axact’s bank accounts.

During the hearing the Federal Investigation Agency’s (FIA) Corporate Crime Circle’s Assistant Director Saeed Ahmed Memon presented a report, which said the FIA was investigating charges of selling fake degrees and money-laundering against that Axact’s CEO Shoaib Ahmed Sheikh and others.

It claimed that Sheikh and Axact’s senior official Vaqas Atiq ran a multi-million scam of fake degree and piled up money which was utilised in Axact’s building, purchase of equipment, properties, payment of rents, as well as paying off employees.

The report said this money was transferred to the bank accounts of many front men, including those of Sheikh’s wife and mother, and was represented as the income generated through software sales. It requested the court to refuse the request to reopen the accounts.

The law officer of the State Bank of Pakistan also submitted the bank’s reply, saying that it had connection with the plea. The lawyers for the plaintiff argued that due to the seizure of accounts, the employees’ salaries could not be distributed.

The court adjourned the hearing of the case till August 6, by which time the interior ministry will submit its reply.

Published in The Express Tribune, July 11^th, 2015.