Axact CEO Shoaib Sheikh arrested after rejection of bail from SHC

KARACHI: The Sindh High Court on Monday set aside the acquittal of Chief Executive Officer of Axact, Shoaib Sheikh, and two directors of a money exchange company by the trial court in a Rs170.17m money laundering case. The Federal Investigation Agency later arrested Shoaib Ahmed Sheikh following rejection of their protective bail by the SHC’s single bench

An additional district and sessions court had acquitted the Axact CEO and two money exchange company directors in Rs.170.17 million money laundering case last year and the FIA had appealed against the verdict, citing grave miscarriage of justice to the state in the form of huge monetary loss caused to the national exchequer by all the accused.

The Additional Attorney General Salman Talibuddin argued that the trial court should have disposed of the case on merit after recording the testimony of the witnesses, which supported the prosecution case. He submitted that the witnesses had stated that the money was transferred to Dubai through Hawala on the direction of Axact CEO Shoiab Ahmed Sheikh, adding the government wanted to know where the money was transmitted. He submitted that the Axact fake degree scam is also pending before a trial court and in Islamabad a judicial officer was removed from service after he admitted to taking bribes from the Axact officials to acquit the CEO and other Axact officials. He submitted that the trial has been pending for a year without framing of charges as the accused Shoaib Sheikh did not appear in the court. He requested the court to set aside the trial court order and remand back the case for trial.

Shoaib Sheikh's counsel Shaukat Hayat said the prosecution failed to provide sufficient and concrete evidence to prove the guilt of the accused who had obtained money through their legitimate businesses. He argued that no case of money laundering through Hawala was made out against the respondent as the case only draws section 109 PPC and that too if the money exchange directors are found guilty of money laundering. He submitted that the trial court rightly acquitted the respondent as no sufficient evidence was produced against him. He requested the court to dismiss the appeals of FIA.

The SHC’s division bench headed by Justice Naimatullah Phulpoto set aside the trial court's order and remanded back the case to Sessions court for trial. The court directed the trial court to frame the charges against the accused on March 3 and conduct the trial in accordance with the law and decide the case within three months. The court also turned down the protective bail request made by the counsel of Shoaib Sheikh.

Later, the counsel of the Axact CEO filed a protective bail application before Chief Justice of the Sindh High Court who referred the case to SHC’s single bench headed by Justice Naimatullah Phulpoto.

The applicant's counsel submitted that the FIA officials had surrounded the court premises and expressed the apprehension about the arrest of the accused. He submitted that access to justice is guaranteed under the Constitution and the applicant wanted to surrender before the trial court and so a protective bail be granted allowing him to appear before the court. To a court query as if the bail hit the principle of functus officio, the counsel submitted that it does not as the Chief Justice had assigned the single bench which has nothing to do with the division bench order.

The SHC’s single bench headed by Justice Naimatullah Phulpoto observed that the principle of functus officio is applicable here as the court cannot reopen the instant case when a judgment has been passed. The court while observing that the application has no merit, dismissed the bail application. After dismissal of the bail application, the FIA officers arrested the Axact CEO Shoaib Sheikh and he will be produced before the trial court on Tuesday.