In politics of loan write off, all are beneficiaries except the poor

ISLAMABAD: In April 2015, Abid Saigol, wrote to Panama-based law firm, Mossack Fonseca, requesting for the registration of an offshore company in British Virgin Island “where the beneficial owner and shareholder is my mother….I will be the General Manager.”

The company was to be incorporated by the name of Kohinoor Agencies Ltd. All was set to proceed when Mossack Fonseca demanded two banking references and due diligence for opening an account in the Canadian bank desired by Abid, Scotiabank. He was reluctant to provide the references and thus the plan was abandoned. 

What was the reason could be anybody’s guess. However, a list of loans written-off tabled in the Senate last week drop some hints. Abid and his brothers are among the biggest bank defaulters who got as many as 12 loans written off in 2001-09 of Rs2,548.354 million. Yet another name figured in the Panama Papers, Mukhtar Sumar, also named in the list as he received waiver of Rs633.33 million for the Farooq Textiles.

A detailed reading of the list will find the names of who’s who and also provides an indication as to how some politicians got loan waivers while in power. They are not the only beneficiaries. 

The names of generals as well as a senior high court judge, the families of a human right activist and of Oscar-winning documentary film-maker have also been figured. Two former accountability czars are among the beneficiaries too.  

There are politicians who got waiver when in government. Included among them are cousins (Jahangir Khan Tareen and Haroon Akhtar families) who secured write off to the amount of Rs358.054 million in two years (2004-05) for Tandlianwala Sugar Mill and Superior Textile Mills. Jehangir Tareen along with two daughters and his brother-in-law Makhdoom Ahmed Mehmood were directors of these mills along with Haroon Akhtar, Ghazi Akhtar, Akbar Akhtar and their mother, Rasheeda Akhtar. 

Jahanagir Tareen and Humayun Akhtar (Haroon’s elder brother) were blue-eyed of Gen. Pervez Musharraf and holding key cabinet slots of the industries and commerce respectively in prime minister Zafrullah Jamali’s cabinet. Another mills having shares of Tareen, Faruki Pulp Mills, has had its loan written off to the tune of Rs78.561 million in 2001. Tareen however has not been named among the directors of Faruki Pulp Mills in the list presented in the Senate. 

Kunjah Textile Mills owned by Chaudhrys of Gujrat secured a waiver of Rs55.59 million in 2007 when Chaudhry Pervez Elahi was chief minister Punjab and Chaudhry Shujat Hussain-led PML ruled at federal level. Shafay Hussain, son of Chaudhry Shujat, owns Kunjah Textile Mills. 

Fehmida Mirza and Zulfiqar Mirza got their loans written off (Rs442.78 million) of Mirza Sugar Mills in 2013 when Fehmida was speaker national assembly. Late Jam Mohammad Yousuf was chief minister Baluchistan when received loan waiver of Rs82.205 million. 

Dreshak family owned Indus Sugar Mill that secured a write off (Rs283.125 million) in 2007 when Ali Raza Dreshak was finance minister of Punjab and his father Nasrullah Dreshak was member of National Assembly Standing Committee on Finance as well as of Public Accounts Committee. 

Galaxy Textile Mills of Feroz Gulzar received waiver (Rs56.01 million) in 2011 when his wife, Hina Rabbani Khar, was foreign minister. Kiran Sugar Mills of Sheikh family got his loan written off (Rs149.133 million) in 2009 when he was elected senator.

Sadiqabad Textile Mills of Dr. Shireen Mazari was waived Rs51.582 million in the early years of Musharraf. Akram Industries of MNAs (Pervez Malik and Shaista Pervez) secured waiver of Rs152.043 million in 2005. Two politician brothers (former federal minister Mushtaq Cheema and former city nazim Faisalabad Mumtaz Cheema) secured waiver of Rs1485.88 million in 2015.

Two former accountability czars: Saifur Rehman and Lt. Gen. (R) Syed Amjad Hussain, have also been named. Redco Textile Mills of Saif received waiver (Rs1116.74 million) in 2006 whereas Amjad’s name along with Maj. Gen. ® Rehmatullah Khan have appeared in connection with his position as he was heading Fauji Cement Company that secured waiver of Rs51.732 million in 2004.   

Lt. Gen. (R) Ali Kuli Khan Khattak is the biggest beneficiaries among khakis. His Ghandara Nissan Limited got four waivers to the tune of Rs557.238 million; two in 2003 and two in 2006. Lt. Gen. ® Qadir got a loan (Rs120.416) written off of Indus Steel Pipe in 2013. He was inducted in Nawaz Sharif cabinet the same year.   

Maj. Gen. (R) Farhatullah Burki has been named among directors of Quality Steel Works that has Rs981.6 million written off. Transmobile of Maj. Gen. (R) Imtiaz Hussain secured waiver (Rs111.893 million) in 2008. Maj. Gen. (R) Jehanzeb received waiver of Rs81.652 for Sarela Cement in 2005.    

Last but not the least: the name of a senior high court judge appears twice in addition to the family of Sharmeen Obaid Chinoy, Oscar-winning documentary-maker has also been enlisted.    Aaj Textile Mills and Mansoor Textile Mills that have Syed Masnoor Ali Shah its director, among others, got waiver of Rs506.694 million in 1999. 

Towellers Limited, owned by parental family of Sharmeen Obaid-Chinoy received a waiver of Rs453.635 million in three bank defaults in 2014. Although Sharmeen’s name is not among directors, her father and sisters have been named in the list.     

Famous character of Mehran Bank scandal, Younus Habi, received an extraordinary waiver only through one write off: Rs2476.39 million. Renowned businessman, who had affiliations with important PPP men, Riaz Laljee got written off Rs1205.67 million.  

Ramzan Sheikh and family of controversial Royal Golf and Country Club Lahore received a waiver of Rs210.496 million.  Dewans, Tawakkals and Mannoo families are also major beneficiaries who availed this facility multiple times.