PTI’s Aleem Khan bought properties in UK through offshore company

Panama papers

Says he’d declared offshore company in Pakistan

ISLAMABAD: As revelations from the Panama papers continue, a noted PTI leader and key party financier Abdul Aleem Khan has also been identified in the record, owning an offshore company used for the purchase of as many as eight properties in London.

Aleem, however, stands out as the only Pakistani who declared the ownership of the offshore company in his assets declaration submitted to the Federal Board of Revenue and in the nomination papers filed for contesting the by-elections from NA-122.

The News accessed the entire record through the International Consortium of Investigative Journalists (ICIJ) that collaborated with more than 100 media partners from different countries for examining 11.5 million files leaked by a whistleblower to Suddeutsche Zeitung, a leading German newspaper.

Hexam Investment Overseas Limited, a company registered in British Virgin Island on December 28, 2005, as International Business Company numbered 690,047, is solely owned by Aleem Khan, records show.

In his tax returns shared with The News, Aleem has described the worth of his share in this offshore company as only Rs2.93 million (Rs2,993,500). He insists his wife is also a shareholder.

Following are the properties purchased or being negotiated for purchase in 2007-8 as found in the documents: (1) Flat 1102 Balmoral Apartments, 2 Praed Street, London, W2 1JN; (2) 562 Park West, Edgware Road, London, W2 2RA; (3) Flat 142, Marble Arch Apartments, 11 Harrowby Street, London W1H 5PQ; (4) Flat A, 305 West End Quay, London W2 1JB; (5) 569 Park West Place, London W2 2RA; (6) 369 Water Gardens, Burwood Place, London W2 2DJ; (7) 43 Davenport, Southwick Street, London W2 2DJ; and (8) 5 Water Gardens, London, W2 2Da.

In response to questions sent by The News, Aleem, however, admitted owning only the first four properties through this company that, he said, were “purchased through mortgage finance arrangements from the bank”.    

Sole director and shareholder of the company as mentioned in the document is Abdul Aleem Khan and one Khalid Mahmood as secretary of Hexam Investment Overseas Limited. The address given for the correspondence is of United Arab Emirates: P. O. Box 120244, Sharjah, UAE.

A resolution dated March 1, 2006 reads: “Abdul Aleem Khan is empowered to open, operate and close bank accounts with any commercial banks operating in UAE or in any country of the world.”

Another resolution dated January 10, 2008 is regarding the loan of “GBP 67,426 (further advance of GBP 67,326) from Bank of Scotland Plc (Isle of Man Branch)” in connection with the purchase of Flat 1102 Balmoral Apartments, 2 Praed Street, London. Original certified copy of Aleem’s six-month statement of the account in ABN AMRO Bank was to be attached with loan agreement, reads the loan agreement of 2008.

Details of bank accounts indicated in Aleem’s wealth declaration in Pakistan don’t mention his account in ABN AMRO Bank contrary to its existence in the loan agreement.Regarding another property (562 Park West, Edgware Road, London, W2 2QZ), a letter dated July 9, 2007 by Farara Kerins, Barristers & Solicitors to The Governor and Company of the Bank of Scotland, The Mound, Edinburgh, EH1 1YZ, reads: “We have acted as legal advisers as to British Virgin Islands law in connection with a legal charge to be granted by Hexam Investment Overseas Limited in favour of yourselves over the property known as 562 Park West, Edgware Road, London, W2 2QZ, U.K………”

Another document shows a copy of the written resolution signed on July 9, 2007 by the sole director, Abdul Aleem Khan and secretary, Khalid Mahmood, that reads as follows:

“(1) The Company wishes to acquire properties in England known as Flat 142, Marble Arch Apartments, 11 Harrowby Street, London W1H 5PQ; 569 Park West Place, London W2 2RA; 369 Water Gardens, Burwood Place, London W2 2DJ; 43 Davenport, Southwick Street, London W2 2DJ, 5 Water Gardens, London W2 2DA; Flat A, 305 West End Quay, London W2 1JB and in due course other properties in London; (2) The Company wishes to appoint an Attorney or Attorneys to attend to all matters arising in connection with the Properties including the purchase, mortgage, letting and management thereof.”

A power of attorney for the purchase of above-referenced properties was granted to “ANDREW DUNCAN KILVERT PITCAIRN and STEPHEN CHARLES BISHOP both of 46 Bedford Square, London WC1B 3DP to be Attorneys for the Company in its name and on its behalf jointly and severally to do and execute all deeds, documents, acts, matters, instruments and things as the Attorneys or any of them may consider necessary or expedient in connection with the Property and in particular but without prejudice to the generality of the foregoing to execute on the Company’s behalf any transfer, lease, mortgage, letting agreement, contract on any other document or authority relating thereto and any Land Transaction Return to be sent to the Inland Revenue.”

As The News approached Aleem Khan for version, he sent his tax return and election nomination papers in support of his claim that the offshore company was declared in Pakistan. In addition, the following was his reply that is incorporated without any amendment.

“I am a businessman dealing in real estate in Pakistan and outside Pakistan for the last 20 years. My business includes real estate developments, buying, selling, letting and trading of real estate assets inside and outside Pakistan. I am registered with FBR and have declared all my businesses and companies not only to the tax department but to the Election Commission of Pakistan as well. There is not a single company which I own and is not declared. I have no “bainami” accounts and businesses in any part of the world. All companies are under my name and declared with all concerned authorities.

“The company you have mentioned M/s. Hexam Investment is declared in my wealth statement with FBR and Election Commission of Pakistan as well. This company owns following four properties:

(1) 1102 Balmoral Apartments, 2 Praed Street, London W2 1JN

(2) 562 Park West, Edgware Road, London W2 2RA

(3) 142 Marble Arch Apartments, 11 Harrowby Street, London W1H 5PQ

(4) 305 West End Quay, London W2 1JB

“These properties were purchased through mortgage finance arrangements from the bank. As I stated earlier that I never concealed any wealth and income sources from tax department. I have also declared to the Election Commission of Pakistan M/s. Hexam Investment in my nomination papers for NA-122 as well,” concludes his detailed reply.