Money-laundering case: Zardari Group took Rs24b loan from Sindh Bank

LAHORE: The Supreme Court (SC) on Monday banned sale, purchase and transfer of properties, owned by Zardari Group, Bahria Town and Omni Group after a report of the joint investigation team (JIT) revealed that the troika was behind laundering of Rs42 billion. A two-judge bench, comprising Chief justice Mian Saqib Nisar and Justice Ijazul Ahsan, heard the fake accounts and money-laundering case at the Lahore Registry and issued notices to Asif Ali Zardari, his sister Faryal Talpur, Malik Riaz Hussain and others.

At the onset of the proceedings, the Supreme Court ordered that a projector be set up in the courtroom to show the JIT report on big screen in the court.

The charts shown through the projector explained that the troika used to transfer billions of rupees of kickbacks and commissions through companies and contractors/ builders acting as their front men. The JIT examined 1,1500 bank accounts of 924 individuals and companies associated with the fake accounts. The report, furnished by the JIT, disclosed that at least 29 bank accounts had been identified as fake, which had been used for money-laundering of Rs42 billion.

Bahria Town was involved in money-laundering of Rs10.2 billion, while kickbacks of Rs1.36 billion were laundered through accounts of 19 various contractors. It said Zain Malik, son-in-law of Malik Riaz, and Mushtaq Ahmad, who happened to be former secretary to Asif Zardari, had been maintaining the accounts of Bahria Town. He said it was a controversial project of over Rs50 billion.

A JIT representative said a payment of Rs1.22 billion had been made to Faryal Talpur by JV-OPAL-225, a venture of Zardari and Bahria groups. He said the building of the company was established on the land, owned by Hakim Ali Zardari, father of Asif Zardari.

A JIT official told the bench that one Mushtaq Ahmad was involved in model Ayyan Ali’s money-laundering case also.

At this point, CJP Nisar remarked that as to how the name of “Bahria” was being used when he had stopped him (Malik Riaz) from using the same.

He apprised the court that Bahria Icon Tower in Karachi was being constructed illegally on the government land, adding that the 60-storey skyscraper also encroached on land of Bagh Ibne-Qasim.

The building is owned by Asif Ali Zardari and Zain Malik through companies of their front men. The Zardari Group holds 50 per cent shares in it, whereas Bahria Group and Mushtaq Dinshaw are also its shareholders, the report said.

“Who is this Dinshaw?” the judge asked. “He is Asif Ali Zardari’s front man,” the official said adding that his name also came to the fore in Ayyan Ali money-laundering case.

Mushtaq’s accounts were used for illegal transfer of Rs8.3 billion, which were claimed to be kickbacks allegedly paid to Zardari.

When asked by the chief justice, the JIT members confirmed that they found a close nexus of money-laundering among Zardari Group, Bahria Town and Omni Group.

The JIT, in its report, recommended for NAB cases and freezing of assets of Zardari Group and its front companies.

Justice Nisar also inquired about the whereabouts of model Ayyan Ali, who had been absconding from trial in a currency smuggling case after fleeing abroad under false pretence.

“Where is Ayyan Ali?” the top judge asked. “Did she leave Pakistan because she was unwell? If someone goes out of the country due to health concerns, is there a way to bring them back?”

About Zardari’s sibling Faryal Talpur, the JIT report said Rs11.2 billion were transferred to her from JV Opal, account and she had admitted it during the her appearance before JIT. The JIT report claimed this money was spent to procure properties in Tando Allahyar and Lahore.

Justice Nisar, while speaking to Omni Group counsel Muneer Bhatti and Shahid Hamid, said, “It seems that Omni Group owners are still sitting on high horses.

“They have looted billions of rupees of the nation and are still engaging in mischief,” he added. “It seems that they will have to be shifted elsewhere from Adiala Jail.”

Justice Nisar continued, “There will be no mercy for Anwar Majid.”

He further said, “You are a counsel and are taking fees. We will hear you, but we have to make a decision.”

Speaking to Farooq H Naek, the top judge said, “It is a matter of billions of rupees and we will not forgive. We cannot pardon those who looted billions and are now engaging in mischief.”

Meanwhile, the JIT findings linked the fake bank accounts to Zardari, claiming that the PPP co-chairperson’s personal expenses were also paid through the accounts’ funds.

The report stated that payments for the upkeep of Bilawal House’s pets and for 28 sacrificial goats was also made through the said fake bank accounts.

The chief justice expressed his surprise at the finding, saying: “The pet dogs’ food and Rs2.7m payment of sacrificial goats was also made by the Omni Group?”

Furthermore, the JIT report claimed that the expenses of Zardari family’s residences in both Karachi and Lahore — commonly known as Bilawal House — were paid through fake bank accounts.

The chief justice asked if the Bilawal House in Lahore was secured according to the law. “Who owns the Bilawal House in Lahore?” asked the judge.

To this, the JIT head replied “At first, it was a gift, but the gift was later returned and half the payment of Rs170 million was made to Bahria Town,” the JIT head answered. It is owned by Mr. Zardari now, he added.

Does it means that this is a troika of Bahria Group, Omani group and Zardari Group?” the chief justice asked. JIT head replied, yes, they are working as a troika to take the money out of country illegally. The chief justice asked if the Bilawal House in Lahore was built according to the law. The JIT head replied the Zardari Group got Rs53.4 billion in loans out of which Rs24 billion were secured from the Sindh Bank, despite the fact the bank could only have advanced a Rs4 billion loan.

The JIT report said the personal expenditures of Zardari family had also been met through accounts of the Omni group to the tune of Rs12 million or so. The expenses included purchase of sports equipment, dogs’ feed, goats for charity (sadqa), dry cleaning, heaters, furniture, birthday functions and lunch for Bilawal Bhutto Zardari etc. The report said loans of Omni group were restructured for at least 83 times whereas a default loan from National Bank of Pakistan was yet to be recovered for the last 10 years.

A JIT member told the court that the Omni group carried out illegal constructions on plots reserved for amenities, temples, library and gymnasium by converting their titles. He said the investigation into the fake accounts revealed that at least Rs1.4 billion had been transferred out of country through “hundi and hawala”.

Chief Justice asked about Bahria Town’s Riaz, and remarked that he is trying to blackmail the court by using his employees for holding protest against the court. The court warned him to attend the hearing or else face arrest. “We are not dependent on anyone; if he doesn’t come due to sickness then we can have him arrested and bring in court in diaper.

The chief justice sought personal appearance of real estate tycoon Malik Riaz and his son-in-law Zain Malik by next hearting. As far as the JIT report is concerned, the court ordered that the report be forwarded to all accused and directed Bahira Group, Zardari group and Omani Group to furnish their replies to the report in five days.

The Federal Investigation Agency (FIA), whose JIT had compiled the report, also asked the court to put the names of all the accused on the ECL.

The chief justice, however, asked the FIA official to approach the interior ministry, saying that “they will take a decision regarding the ECL”.

Towards the end of the hearing, the top judge remarked that the JIT’s report cannot be deemed “final and complete”.

JIT member told the court that Sindh government as well Anwar Majeed, head of Omani Group, did not cooperate during investigation. On it, Chief Justice hinted at summoning Sindh Chief Minister Syed Murad Ali Shad, but abstained from doing so.

To this, Majeed’s lawyer Advocate Shahid Hamid said he is an old man of 77 years and he had disassociated himself from the group many years ago. However, Chief Justice said honest had nothing to do this age, adding that it means the FIA should arrest Majeed’s son Nammar Majeed for interrogation.

At one point in time, Chief Justice Nisar snubbed Shahid Hamid after he questioned Supreme Court’s power to hear the case of money-laundering, asking the top judge that “you cannot conduct a criminal trial”.

“We can proceed under Article 184 of the Constitution,” Justice Nisar countered, adding “you (Shahid Hamid) might be an accomplished lawyer in the field of corporate law, but ‘Don’t undermine the court’.”

Continuing, Hamid said presumption of innocence is always attached to the accused unless proved guilty, asking the court to refer the matter to some criminal court of competent jurisdiction. He apprehended that if the trail is conducted by the SC, the accused would be deprived of their legal right of appeal against the decision.