Accountability courts return eight references after NAB law amended

The recent changes brought to the National Accountability Ordinance 1999 have left the accountability courts across the country without jurisdiction to hear certain corruption cases, especially those in which the amount misappropriated is under Rs500 million.

Following the amendments to the accountability law, the accused began moving the relevant courts to return their cases to the National Accountability Bureau (NAB) due to a lack of jurisdiction.

The accountability courts in Karachi have thus far allowed such pleas in at least eight references, returning them to the anti-corruption watchdog or transferring them to the relevant forum. Many similar applications are pending disposal.

The cases pertain to cheating the public at large, tax fraud, fake bank accounts, corrupt practices and extorting money from government officials through impersonation. Seven of the references have been returned by the Accountability Court-VI alone and one by the Accountability Court-I on the grounds that either the amount involved is below the Rs500 million threshold or the number of affected people in “cheating the public at large” cases is less than 100, as required under the recent changes, or both.

Among these references is one filed by the national graft buster against Khalid Hussain Solangi and his accomplices for allegedly cheating and extorting money from government officials by masquerading as NAB officials. They are accused of extorting a cumulative amount of Rs91.1 million from at least seven government functionaries.

The absconding accused also made threatening calls to former deputy chairman Senate Saleem Mandviwala, MNA Khel Das Kohistani, MPA Nusrat Sehar Abbasi, Shahbaz Taseer, Malir’s deputy commissioner and over a dozen others to extort money but they could not succeed.

Of the ill-gotten money, Rs9.4 million was transferred to the absconding accused Solangi, said to be residing in Dubai, by his accomplices through illegal channels. “It is to be noted that Section 5(s) of the National Accountability (Second Amendment) Act 2022 defines ‘public at large’ as at least 100 persons; however, in the present case the aggrieved persons are less than 100,” Accountability Court-VI Judge Tasneem Sultana observed in her judgement passed on a transfer application filed by co-accused Amir Hussain. The case has been transferred to a session court.

The judge also transferred to a banking court three references stemming from a single scam involving Federal Board of Revenue officers and others who had allegedly opened fake bank accounts in the name of non-existing companies and individuals in collusion with bank officials, and issued 3,036 tax refund cheques during the years 2005, 2006 and 2007. The cheques were deposited in these accounts and encashed, causing losses of Rs83 million to the national exchequer.

Another case returned to NAB Karachi was filed against property builder Zafar Nehal, chairman of Arisha Cooperative Housing Society, who allegedly in connivance with the society’s secretary and a builder defrauded people of Rs814 million by illegally occupying and carving 181 plots out of 10 acres of land belonging to the Karachi Water & Sewerage Board and later selling them to the people.

NAB prosecutor Zahid Hussain Baladi had argued that the number of the aggrieved persons was 181. However, sub-registrar Noor Muhammad, a prosecution witness, said the society had issued a total of 87 sub-leases, meaning 87 persons were aggrieved.

“Since the number of aggrieved persons is 87, this court lacks jurisdiction. Accordingly, the instant application is allowed,” Judge Tasneem Sultana said. The same court transferred a reference to a customs, taxation & anti-smuggling court that involves the alleged corruption of 417.409 million through illegal tax duty exemption.

The Accountability Court-I returned to NAB a case involving losses of Rs98.1 million to the national exchequer as the accused named in the case had sliced a piece of land allotted for industrial purposes into residential plots and sold them in Korangi.

The judge noted that there were 13 prosecution witnesses, out of whom six were private persons and the rest Karachi Development Authority officials. If the private persons are considered affected people, their number is far below the requisite 100 to constitute a case of “public at large”, and similarly, the loss is also below Rs500 million. The court returned the reference to NAB Karachi’s director general to be transferred to the relevant forum for disposal according to law.