KARACHI, July 31: When the bail application of former naval chief Mansoorul Haq came up before a division bench on Wednesday, his counsel submitted that his client has been cheated by the government and implicated in a fresh reference, despite firm commitment by the NAB authorities while striking a plea bargain in submarine reference.

The bench comprised Justice Sarmad Jalal Osmany and Justice Musheer Alam.

When the counsel Iqtidar Hashmi tried to proceed with his plea for enlargement of his client on bail in Reference No 25 of 2002, Justice Osmany said he cannot hear this matter and ordered that it should be put up before some other bench.

Counsel Hashmi, nevertheless, submitted that while the application for plea bargain in the submarines reference was pending before the accountability court, the applicant was contacted personally by the NAB chairman, Lt-Gen Munir Hafeez, who was accompanied by rear admiral Ubaid Sadiq and few others, who persuaded the applicant that if instead of paying US $33,69,383 he agreed to pay US $7.5 million, he shall be released and there shall be no proceedings of whatsoever nature against him in future.

But the bench adjourned the matter to Aug 6. The reference pertains to the period from 1994 to 1996 during which three container ships were purchased by the PNSC for a total sale price of US$ 47.14 million.

It was alleged that the average price of each ship was nearly US$9.37 million and accordingly there was a difference of US$ 19 million.

It was further alleged that the applicant, in connivance with the other two accused, who according to the reference were appointed by the applicant, in their respective positions through manipulation with the then prime minister, caused loss to the national exchequer.

It was also alleged in the reference that the above three vessels resulted in a loss during the period from February to June 1996 to December 2000 and the total loss shown in this regard was to the tune of Rs 1.85 billion.

In pursuance of the orders of the accountability court, the applicant was arrested on July 15 and was remanded to judicial custody and is presently lodged at Central Prison, Karachi.

The accused contended that the reference is absolutely vague and does not spell-out any specific allegation against him except that he was allegedly instrumental in getting the appointment of accused No.1 Rear Admiral Javed Ali, ex-chairman PNSC and Cdr. Mirza Ashfaq Baig, Director, Ship Management, PNSC.

According to the reference itself, the three container ships after their acquisition by the PNSC were inducted in the PNSC fleet in 1996 and remained operative till the year 2000.

The recorded position is that the applicant, much before the purchase of three container ships, had been appointed the CNS and, therefore, had no concern with the affairs of PNSC, except that the applicant was principal adviser of the government in his capacity as the chief of naval staff. However, he was not in any manner instrumental in the purchase of the three container ships by the PNSC.

It is the case of the applicant that purchase of ships was scrutinized and he was not a member of any such committee.

The applicant claimed that it was also a recorded fact that in April, 1997, the then prime minister, Nawaz Sharif, who was curious to appoint someone else as the CNS, had asked the applicant to resign. It is claimed by the applicant that the then president, as well as the prime minister, told the applicant to resign in the presence of the chairman, JCSC and CAS, and that in case the applicant resigns, no further harassment shall be caused to him. Therefore, the applicant resigned in April 1997 and was allowed to proceed on LPR.

As soon as the applicant left for abroad, he had no concern either with the PN or with the PNSC. It is, therefore, ridiculous to say that on account of the alleged loss sustained by the ships from 1996 to 2000, the applicant was in any manner responsible for the alleged loss, the applicant claims.

The applicant alleged that soon after the dissolution of national and provincial assemblies in November, 1996, the then president on the presumption that the applicant was close to or politically or socially associated with the government of Ms Benazir Bhutto, started targeting the applicant with unilateral accusation.

Mr Azizullah K. Shaikh had appeared on behalf of Cdr. Mirza Ashfaq Baig, Director (Ship Management) PNSC. Since the matter was concerned with the application of Mansoorul Haq, it was also adjourned to Aug 6.