Arif Naqvi returned all monies to Gates’ charity, court hears

LONDON: Pakistani business tycoon Arif Naqvi’s Abraaj Group returned all monies to Bill & Melinda Gates Foundation and other American investors with interest, a judge has heard.

At the Westminster Magistrates’ Court, where Naqvi’s US extradition hearing is being held, a witness told the judge that the former chief executive officer (CEO) of Abraaj Group had ensured that all monies in question by US investors in relation to the healthcare fund were paid back to those investors in full with interest by December 31, 2017.

This inquiry was started by Bill & Melinda Gates Foundation before becoming front page news and eventually leading to the collapse of the business.

Passing statements of fact provided by cross examinations of by both Naqvi’s barrister, Hugo Keith QC and the US Government’s barrister, Mark Summers QC, witnesses have revealed two more very important pieces of information.

The court heard that Abraaj Private Equity Fund VI (APEF VI), the flagship fund which had raised a record $3 billion before Abraaj’s collapse, was never actually drawn down and no investor monies ever invested or lost from that fund.

The court also heard separately that the US government’s entity named Overseas Private Investment Corporation (OPIC), who were also noted in the indictment, were not an investor but a debt provider which had been repaid in full, contrary to the indictment alleging otherwise.

Keith QC told the Chief Magistrate that Naqvi continues to deny the allegations in the indictment that he personally misappropriated money for his benefit and wants to submit evidence to show his innocence but will respect the rules of the Court and only speak to the bars against extradition, which included ‘forum’ - that a trial should take place, if any, in the UK, and that US prisons violate Article 3 human rights and that staff of these prisons are not allowed to talk about the terrible conditions. Witnesses were produced on both arguments.

During the trial that will last till the middle of next week, the lawyers for the US government did not produce any evidence to show that their prisons did not violate human rights but revealed to the court that if Naqvi was extradited to the US, they would ask the US judge to grant him bail.

In itself an unprecedented offer, seemingly in response to Naqvi’s lawyers’ advance submissions on appalling federal prison conditions in New York where he would be held, potentially for years before a trial in New York could even take place.

Naqvi’s lawyers have rejected the offer telling the court that they did not believe the offer had substance, given that the decision in the US could only be taken by the judge in the US case, namely Judge Kaplan, producing a witness who said that there was a real risk that a Judge would not agree with any offer and detain him to either the Metropolitan Correctional Center (MCC) or Metropolitan Detention Center (MDC). Naqvi’s lawyer pointed out the words “present intention”, which meant there could always be a change of heart if he reached US soil. According to documents, more than 95 per cent of US federal indictment cases end in plea bargains, with many forced to plead guilty and a tiny percentage of cases going to trial. Statistics were not submitted on how many of those that went to trial, the US government won.

Naqvi is among several people charged by US prosecutors with being part of an alleged international scheme to defraud investors including the Bill & Melinda Gates Foundation. Naqvi and others are facing 16 counts including fraud, money laundering and racketeering, known as RICO, created to target organised crime such as the mafia. The indictment comes to 291 years if convicted in USA, where Naqvi does not believe he will get a fair trial.

In one of his first public appearances since his arrest last year, Naqvi was bearded and looked notably tired. He has not interacted with media throughout despite numerous attempts. Naqvi was born in Karachi in 1960 to a middle class background.