Imran admits SKMT invested funds in two offshore firms

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan Saturday admitted that the Shaukat Khanum Memorial Trust (SKMT) charity funds were invested in two offshore companies.

The PTI chairman made the revelation during the hearing of a defamation case, filed by him against Defence Minister Khawaja Asif in connection with the latter’s allegations of misuse of cancer hospital donations.

Khan had filed a defamation suit of Rs10 billion against Kh Asif in 2012, for levelling allegations of non-transparency, money laundering and use of anonymous companies in the Shaukat Khanum Memorial Trust funds. Khan had termed the allegations false and defamatory.

Kh Asif’s lawyer completed the cross-examination of Imran Khan in the court of Additional District and Sessions Judge, Umid Ali Baloch. PTI Imran Khan appeared in court through video-link and lawyer Ali Shah Geelani started cross-examining Imran Khan, during which Imran Khan said that it was true that $3 million were invested in 2008, and the amount was returned to hospital in 2015.

The amount remained with the HBG Group for seven years, whose chief executive is Imtiaz Hyderi, who was part of the committee that approved the investment of $3 million.

The investment was not approved by Imtiaz Hyderi to get any benefit; there was a discussion about the investment in the board meetings, when the legal notice was sent to Khawaja Asif, the investment amount was not returned until that time. For 16 years, Imtiaz Hyderi has been a donor of Shaukat Khanum Hospital. “But I do not know personally whether Imtiaz Hyderi was a donor or not for Shaukat Khanum.

“Many overseas Pakistanis donate for the hospital. I did not mislead the court on the role of Imtiaz Hyderi. I do not remember who Shaikh Saleem Al-Mishani is,” added Imran khan.

Khawaja Asif’s lawyer asked: “Do you know about the investment in offshore companies?”

Imran Khan said, “I don’t know about all the decisions of Shaukat Khanum Hospital; there is an audit report on the financial decisions of Shaukat Khanum Hospital, the board of Shaukat Khanum Hospital makes the decisions.

“It does not ask me about all decisions. But I know at the moment that money of Shaukat Khanum Hospital was invested in two offshore companies.” Kh Asif’s lawyer said that according to the records of Shaukat Khanum, $18 million had been sunk in the investment in Oman project in 2009 and 2010.

Imran Khan replied “As far as it is known to me, the investment of Shaukat Khanum Hospital has benefited it. What is written in the report of Shaukat Khanum Hospital is correct. At the time of investment, it is not known whether there will be profit or loss? The investment was made on the basis that it will benefit Shaukat Khanum.”

When the lawyer asked about the investment in IBN Amro Notes, Imran Khan said, “I don’t know the details of the investment in IBN Amro Notes.”

To a question, Imran Khan said Shaukat Khanum’s endowment board takes decisions on investment on a daily basis. “I don’t know how much profit or loss was made on IBN Amro Notes or when the investment was made. I am not an economic expert. Economists in the board of governors look at such matters. The budget of Shaukat Khanum Hospital is Rs18 billion, the economists of Shaukat Khanum Hospital are present for audit, whose job is to look at economic matters.”

The lawyer asked Imran “You made statements in newspapers related to defamation. Do you put the CD to the media houses yourself?”

Imran Khan said, “I personally did not put the CD of the statements related to defamation. No notice of defamation to any publisher sent. The CDs and transcripts attached to the claim have not been verified by any relevant media outlet.”

To another question, Imran Khan said: “I participated in the Woton T20 Cup related to the donation. The dinner was not organised under the Woton Cricket Club. I only know that Arif Naqvi of Tehreek-e-Insaf. A dinner was held for the financial benefit in July last year.

“I am well aware of the article printed in the Times; this article was against Arif Naqvi, so legal notice was not sent to the newspaper,” said the lawyer.

“Is it true the Election Commission has given a decision against you on prohibited funding and Tosha Khana,” asked the lawyer.

Imran Khan said, “Yes. The Election Commission issued a decision on Tosha Khana and alleged corruption.”

Imran Khan told the lawyer that Tosha Khana is also legal, foreign funding is also legal.

Kh Asif’s lawyer said that Imran Khan had been accused of alleged corruption. “Does Tehreek-e-Insaf and Shaukat Khanum have any investigation wing?”

Imran Khan said Shaukat Khanum’s annual donation is up to Rs9 billion. “How come we know which donation for Shaukat Khanum is legal and which one is not?” He said more than 40pc of Shaukat Khanum Hospital’s donations are collected from abroad. “It is wrong that the money of Shaukat Khanum Hospital was sent out through money laundering, and was brought back through Imtiaz Hyderi’s company.”

Imran added, “I don’t know Imtiaz Hyderi personally.”

The lawyer said whether the company ever prepared a financial statement related to Shaukat Khanum’s investment.

Khan said: “Shaukat Khanum Hospital is the [country’] biggest health charity. I am the highest fundraising person in Pakistan. Khawaja Asif levelled baseless allegations against me.”

He maintained that nobody would donate if doubts were cast on their spending, adding that he wanted to “save the hospital [from shutting down]”.

The PTI is the only party in the country that runs on donations, Khan said. He pleaded with the court to decide the case at the earliest.

The PTI leader lauded the counsel for Kh Asif and said: “You fought the case very well.”

Taking a jibe at him, Khan said: “It was not a case but you made it a case. I will consider hiring you in future.”

Meanwhile, the court adjourned the hearing till March 4.