LONDON: Broadsheet LLC has said it will take further action against Pakistan's assets if an estimated $2.2 million in interest payments, outstanding judgment debt and legal costs is not paid immediately.
This correspondent has seen detailed correspondence between Pakistan’s lawyers at Allen & Overy and Broadsheet’s lawyers at Crowell & Moring in the last two weeks.
Pakistan, in this regard, has been asked by the British asset recovery firm to immediately pay the following amounts: US$ 1,180,799 in respect of further interest owed by Pakistan on judgment debts, accrued after the issue of Broadsheet’s third party debt order on partial payment by funds received from United National Bank on 31 December 2020; US$ 40,677 being the balance of the judgment debt remaining unsatisfied; US$ 5,889 interest accrued on the balance of the judgment debt being and continuing to accrue at the daily rate of US$ 267.72 and Broadsheet’s enforcement cost currently standing at around US$ 800,00.
According to the exchange between both sides, Pakistan’s lawyers have assured Broadsheet’s counsel that the government seeks a quick resolution to the dispute. The government's lawyers attributed the delay in payments to the COVID-19 pandemic, due to which there was delayed communication with the National Accountability Bureau — the firm that had hired Broadsheet to begin with to investigate assets of Pakistani politicians held abroad.
Broadsheet's legal counsel, however, have warned that further enforcement action — similar to the freezing orders given for Pakistani assets in the recent past — will be taken if the debt is not paid.
An email from Allen and Overy explained why there has been a delay from Pakistan’s end and why their client needs more time: “Our clients received your letter, which superseded your letter of 18 January 2021, late on Friday night. The Pakistani administration does not operate at the weekend and inter-departmental approvals, which are necessary in this instance, take longer than a week to obtain. The severity of the pandemic situation in Pakistan also means that the Pakistani administration operates a reduced service.”
Pakistan’s legal representative had told Broadsheet’s lawyers that they will respond “as soon as we can” but the firm's lawyers said they have been left with "absolutely no alternative" but to commence further enforcement action against the Government of Pakistan.
They added: “Bearing in mind the significant publicity about this case in Pakistan, we find it extraordinary that your client continues to delay and further continues to ignore the orders of the High Court.”
In a letter sent from London to NAB headquarters on 24 January 2021 reference Chartered Institute of Arbitrators Case No. 12912001, Broadsheet set out what it has incurred in seeking the enforcement of Mr Justice Teare’s quantum and costs orders (sealed 25 October 2019 and 29 November 2019 respectively).
This was in reference to nearly $29 million that Broadsheet seized at the United Bank Limited’s London branch through execution proceedings against the bank on 31 December 2020, pursuant to Deputy Master Lay’s order of 17 December 2020. The letter explained to NAB and Allen & Overy that Pakistan Government failed to honour the orders and judgment of London and then Broadsheet had to go get enforcement orders from the court and as a result legal costs jumped.
Broadsheet’s lawyers have counted the legal costs as US$791,199 — research: $58,928; advice to client: £93,852; service issues and dealing with FCO: $27,666; dealing with third parties: $47,016; work on documents: $262,075; communication with counsel: $59,561; communication with the court; $5762; correspondence with Allen and Overy: $16,862; and internal discussion: $219,472.
A spokesman for Broadsheet’s lawyers said that the firm repeatedly made NAB aware of its endeavours to enforce Mr Justice Teare’s Orders and have kept them apprised of their increasing liability for costs and interest. He said that NAB’s inability to pay its dues to Broadsheet in full, only serves to prolong matters and further increase Pakistan’s liability.