PTI and APML raised billions of rupees in US

MQM and PPP also created firms under American law

ISLAMABAD: At least four Pakistani political parties formed firms in the United States of America to finance their campaigns where two of them raised funds worth billions of rupees in recent years, revealed official documents.

These parties – Pakistan Tehreek-e-Insaf (PTI), All Pakistan Muslim League (APML), Pakistan People’s Party (PPP) and Muttahida Qaumi Movement (MQM) – have formed firms in America in a move either to raise donations/ funds or to run their campaigns, revealed the documents.

These parties, however, neither disclosed these firms in their latest annual statements 2015-16 nor in the past, which is apparently a clear violation of Section 6 and 13 of the Political Parties Order, 2002 (PPO). It categorically states: “Accepting foreign funds through domestically incorporated public or private firms by parties is prohibited.”

Chapter-II of the PPO 2002 reads: “Any contribution made, directly or indirectly, by any foreign government, multinational or domestically incorporated public or private company, firm, trade or professional association shall be prohibited – contributions or donations, as the case may be, accepted by political parties are prohibited under clause (3) of Article 6.”

The PTI, MQM, APML and PPP are perhaps only political entities which under Foreign Agents Registration Act, 1938 got registered their firms with Department of Justice (DoJ) in America where total 399 active firms are listed presently.

The PTI received latest tranche of funds/contributions worth $117,000 on April 30, 2017, revealed the documents submitted with the (DoJ). The Supreme Court and the Election Commission of Pakistan (ECP) asked simultaneously for hearing miscellaneous petitions against the PTI because it allegedly continues to raise donations/ funds through firms and individuals from America since Feb 2010. The PTI received funds worth some $3.5 million through its foreign accounts since 2010, documents continued to reveal, also this correspondent had access to.

Purpose of collecting such funds was to help the PTI establish genuine democracy in Pakistan. Mohammad N Khan, an American national, formed a company, PTI US LLC, (Registration Number 5975) in 2010 which raised $2.344 million from Feb 2010 to June 2013. And then PTI formed a new firm (Registration Number 6160) in 2013 which raised around $850,000 till April 2017 and practice goes on.

The PTI Pakistan received funds $190,000 in 2011, documents revealed that party raised funds worth some $775,000 in June 2012 and then another tranche worth $284,000 collected through this firm in December 2012. Party received $627,610 in June 2013 and $384,000, $165,000 and $30,000 also received into its foreign account till December 2013.

Contributions/ funds worth $90,000 were received by PTI Pakistan through its central bank account in 2014. Aftab Shah, an American citizen and Ali Asim Khan, a Canadian citizen, raised these funds.

The PTI US-LLC raised $401,956 but transferred $305,000 to Pakistan in April 2015 and $75,000 were transferred to PTI in October 2016. Mr Sajjad Burki, a US citizen, who is President of PTI USA LLC California, Faisal Irshad, a US citizen and Kaleem Syed, a Pakistani national were part of this campaign.

PTI Secretary General Jahangir Tareen says, “According to US laws, it’s only legal to collect donations though FARA, 1938 registered firm — therefore, it’s only legal way to collect donations. These are not really companies but donation collection vehicles — yes these are special purpose companies set up by the PTI. Their only purpose is to channel donations as does the US laws."

Two American nationals, Raza Bokhari and Adeel Shah jointly formed three firms where one of them was named APML LLC. Firms (Registration Numbers 6062-6018-6019) got registered with the DoJ and jointly collected donations/ funds worth some $270,000. The APML LLC (Rg No 6019) was formed in October 2010 where Mr Bokhari claimed that he is a close friend of General (retd) Pervez Musharraf, who is president of APML. APML raised estimated $130,000 in 2011 and $33,500 in 2012. Documents did not show either these funds were transferred to APML in Pakistan or not.

Secretary General APML Dr Amjad denied accepting donations/ funds from abroad saying, “They have not received even a single penny neither from Foreign nor from any Pakistani company or donor agency.”

The PPP, through an American firm Bursen Marsteller, also got registered a firm (Registration Number 2469) in January 2006. Asif Ali Zardari, through this firm, signed an agreement with Bursen Marsteller. Firm remained operative till June 30, 2007 where it involved a deal worth around $110,000 aiming to expand its outreach in America and getting more strong political support in Pakistan. Documents, however, did not reveal either PPP generated funds through this firm or not.

“I’ve no knowledge of taking funds from any company what to talk of US company I will check and get back to you. PPP has never received any funding from abroad. All monies we receive come from party’s members,” responded Senator Saleem Mandviwalla of the PPP.

The MQM also got registered a firm (Registration Number 6005) with JoD under FARA 1938 having address of Nine Zero, Azizabad, Pakistan. Its registrants are Ibad Rehman, a Canadian national, Ajaz Siddiqui, an American national; Dr Farooq Sattar and Khalid Maqbool Siddiqi for collecting donations/ funds for political campaign and other projects in Pakistan. But how much amount MQM raised through this firm was not clear yet. Senator Mian Ateeq of MQM, when contacted for comments, said he did know about this firm.

Under the PPO 2002, every political party is obligated to disclose source of funds/donations, observed senior lawyer Ali Zafar. Election laws allow accepting donations from individual including foreign nationals, Mr Zafar said. A party can create firms to raise funds, if it discloses source of income, Mr Zafar said. But in case of PTI, he added: “PTI could form a firm under US laws for raising donations but collected amount must be disclosed in its annual declarations submitted with ECP.”