Broadsheet verdict: NAB paid $1.5m to a fake firm

• The court's ruling titled Part Final Award (Liability issues) was handed down in August 2016
• In May 2008, Pakistani authorities had paid around 1.5 million dollars to Jerry James, head of a fake company
• The court ascertained that NAB was involved in intentional wrongdoings

WASHINGTON: A London court ruled that the National Accountability Bureau (NAB) knowingly ‘conspired’ to financially harm Broadsheet LLC by entering into a settlement agreement with an unauthorised individual and paid around 1.5 million dollars to his fake firm.

A copy of the original court ruling that was confidential has been obtained by Geo News exclusively.

The arbitration court that heard the case - Broadsheet LLC vs. The Islamic Republic of Pakistan and the National Accountability Bureau - was chaired by Sir Anthony Evans. The court's ruling titled Part Final Award (Liability issues) was handed down in August 2016 under the Chartered Institute of Arbitrators, Case No. 12912001.

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The case details the whole saga from establishing NAB to signing and then three years later rescinding the agreement between the NAB and Broadsheet LLC, breach of the contract, illegal payments from Pakistan to wrong entities; and all that led the court to ascertain that NAB was involved in intentional wrongdoings.

The anti-graft body and Broadsheet had signed the agreement in June 2000, which was breached by Pakistan in October 2003.

The judgment documents reveal what the arbitration court had concluded that the claimant [Broadsheet LLC] was entitled to recover damages from the respondents [the Islamic Republic of Pakistan and the National Accountability Bureau] for the "tort of conspiring to cause unlawful economic loss to the Claimant by entering into the Settlement Agreement dated 20 May 2008 with Mr. James and companies controlled by him and/or in making payments to him or them thereunder."

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In May 2008, Pakistani authorities had paid around 1.5 million dollars to Jerry James, head of a fake company, blackballing the actual one - Broadsheet LLC, an Isle of Man entity. After the ruling from the London Arbitration court, Broadsheet LLC leapt for the Quantum decision, forcing Pakistan to pay up more than 28 million dollars in damages.

"There was, in my judgment, a deliberate decision by NAB to disregard the known risk of economic harm to Broadsheet IoM or, as Claimant submits, to turn a blind eye to damage that would or might be caused to it by entering into the Settlement Agreement with Mr. James and his Colorado companies and/or in making payments to them under it. I HOLD that that was 'reckless' conduct by NAB which gives rise to tortious liability, as alleged," the judge ruled.

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The lengthy judgment lists conclusions that hold, find, declare and award in favour of Broadsheet stating that the company is entitled to recover damages from the NAB and Pakistan for their wrongful repudiation of the (Asset Recovery Agreement) ARA dated 20 June 2000 by their solicitors' letter dated 28 Oct 2008.