Fake accounts scam: JIT findings may fall heavy on many bigwigs

ISLAMABAD: The fake accounts joint investigation team has recommended a legal course against some 415 key individuals and around 172 entities allegedly involved in transactions of approximately Rs220 billion through 104 fake accounts.

Investigators during the course of JIT proceedings summoned some 620 individuals after September 9, 2018, revealed senior officials associated with those who have finalised a JIT report consisting of some 7,500 pages with over 10 volumes. The report finalised on Wednesday carries profiles of over 70 key accused and details of their assets parked abroad. The sealed report is being taken up by the Supreme Court on Monday (December 24).

The JIT in its report divided its findings into four categories i.e. forensic analysis of fake accounts has almost been concluded, records of entities and individuals have been taken from Security Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), National Accountability Bureau (NAB), Federal Board of Revenue (FBR) and intelligence agencies, partial record of all the contracts have yet to be collected from Sindh government, responses on requests under the Mutual Legal Assistance are yet to be received and further investigation is required for information acquired through source reports.

Most of the information, except fake accounts saga, has been taken through sources by JIT who revealed that former president Asif Ali Zardari is believed to own multiple properties in Brussels and Paris: “12-3 Boulevard De-Nieuport, 1000, Brussels and Chausee De-Mons, 1670 Brussels and La Manoir De La Reine Blanche and property.”

The JIT summoned some 620 witnesses where 470 witnesses recorded their statements either directly or through their counsels, sources revealed. Some 70 accused either refused to respond to JIT notices or were found living abroad. Records of 210 entities/companies taken from FBR, SECP, SBP, Sindh government and NAB were thoroughly examined by the JIT which got support of over 230 government officials in its 75 sittings, sources said.

The JIT also finalised its investigation of around 20,000 transactions accordingly. Statements of key accused: ex-president Zardari, MPA Faryal Talpur, PPP chairman Bilawal Bhutto Zardari, Mustafa Memon, Zain Malik of Bahria Town, Abdul Ghani Majeed, Aslam Masood, Anwar Majeed, Col (retd) Asad Zaidi, Ghulam Qadir Marri and Ashraf D. Baloch were recorded by the JIT, which also clubbed their statements with the report.

Business volumes of Zardari Group Pvt Ltd, Omni Group, A-One International, M/s Bahria Town Karachi, M/s Iqbal Metals, Kingerete Project Management Pvt Ltd, Lucky International Ltd and other prominent entities operating in Sindh have been clubbed with the report carrying a volume based on the MLAs.

NAB, FIA, NADRA, SBP, SECP and FBR handed over all the relevant records but the JIT revealed in its report that the Sindh government has yet to hand over complete records of all the contracts.

JIT Volume-IV also revealed payment of Rs4.14 million on June 29, 2015 from a fake account owned by M/s Logistic Trading for food supplies to Bilawal House by M/s ‘The Deli’ restaurant. The report also disclosed a payment of Rs1.54 million of domestic water bill for April 20, 2015 pertaining to House No D-30, Block 3, Clifton from a fake account of M/s Royal International which was maintained at a private bank in Karachi.

The report also revealed that Zardari Group Pvt Ltd received a sum through M/s Lucky International’s account '12120-311714135-339' maintained at a private bank in Karachi.

The JIT in its recommendations also suggested that a few more JITs be formed to probe matters linked to the key accused holding assets abroad.

The JIT observed that either the investigation would be further referred to banking courts, NAB, FIA or it was up to the apex court to decide based on the JIT findings. In a series of events in the fake accounts investigation, the JIT report also revealed a domestic worker of Zardari, with an estimated fortune of around Rs8.1 billion stashed into one of his fake accounts. Mushtaq Ahmed, 37, who once served as one of personal staff members of Zardari accumulated the wealth with Zain Malik through a joint fake account maintained in a private bank in Karachi during 2014-15, the report stated.

Additional Director General (Economic Crime Wing) Ahsan Sadiq headed the investigation team while FBR senior officer Imran Latif Minhas, Joint Director BID-I, SBP Majid Hussain, Director, NAB Noman Aslam, Director, Specialized Companies Division, SECP Muhammad Afzal and Brigadier Shahid Parvez of Inter-Services Intelligence (ISI) were other members who pursued the investigation.

Summit Bank President Nasser Abdulla Lootah, Ansari Sugar Mills Pvt Ltd (Anwar Majeed, Ali Kamal Majeed), Omni Polymer Packages Pvt Ltd, Pak Ethnol Pvt Ltd, Chamber Sugar Mills Pvt Ltd, M/s Agro Farms Thatta Pvt Ltd; Zardari Group Pvt Ltd (Bilawal Bhutto Zardari, Asif Ali Zardari, Faryal Talpur), Parthenon Pvt Ltd (Iqbal Khan Noori), A-One International (account identified in Suspicious Transaction Report), Lucky International, Logistic Trading, Royal International and Umair Associates remained the prime focus of this investigation.

The JIT also found that Bahria Town Karachi (Zain Malik), Sujawal Agro Farms Pvt Ltd, Tando Allahyar Sugar Mills Pvt Ltd, Omni Pvt Ltd, Agro Farms Thatta Pvt Ltd, Alfa Zulu Com Pvt Ltd, Haji Mureed Akbar (banker on behalf of contractor), Sher Mohammad Mugheri & Co (contractor), M/s Sardar Mohammad Ashraf D. Baloch Pvt Ltd (contractor), A-One International, Lucky International, Logistic Trading, Iqbal Metals (STR), Royal International and Umair Associates deposited money in fake accounts.

The FIA Anti-Corruption Circle (ACC) Karachi initiated inquiry into the fake accounts scam in 2015 on a source report received from the Financial Monitoring Unit (FMU). Then on July 5, 2018, the Supreme Court took notice of this case ordering FIA to probe into suspicious transactions made through 29 ‘benami’ accounts — 16 held in Summit Bank, eight in Sindh Bank and five in UBL.

On July 10, Chief Justice of Pakistan summoned a number of individuals and heads of different business groups, including Zardari and his sister Faryal Talpur after their names appeared among the beneficiaries of suspicious transactions believed to be meant for money laundering.

The apex court formed a Panama-like JIT on Sep 5, 2018. Following the orders, the JIT submitted its first report on September 24, second on October 22, third on October 30, fourth on November 5, fifth on November 12, sixth on November 28 and then finally, the Supreme Court directed the JIT to submit its final report on December 10.

The key development happened in this case when Hussain Lawai was arrested on July 6, and Abdul Ghani Majeed on August 15. One of the chief accused in the ongoing case, Aslam Masood, was arrested by Interpol in Saudi Arabia on October 23. Anwar Majeed's son Nimr was arrested outside the Supreme Court on October 27.