17 October 2004	Sunday	02 Ramazan 1425

KARACHI, Oct 16: Abdul Qadir Tawakkal, a business tycoon, was convicted on Saturday in four bank loan default cases by an accountability court which awarded him four terms of rigorous imprisonment, totalling 28 years.

Judge Mrs Qaiser Iqbal of the AC-1 also imposed a fine of over Rs200 million on the 70-year-old businessman, whose absconding sons and business associates were also convicted and sentenced in absentia.

Three cases against Tawakkal were registered on the complaints of the UBL, which was defrauded of around Rs97 million, while one case pertained to availing finances of Rs107.327 million from the ABL.

All absconding accused, including six sons of the businessman, in the four cases were also convicted in absentia for deliberately avoiding legal proceedings on the application of special public prosecutor Syed Nadeem Hussain Shah.

The elderly businessman, who has been in jail for the last seven years for his involvement in financial crimes, had also set up a bank at Turkish Cyprus, which he used for opening a number of Letters of Credit.

The East Mediterranean Trust and Banking Corporation (EMTBC) was established with the capital of US$500,000 in 1991 by absconding accused Saleem I Kapoorwala, who was associated with the Tawakkal Group of Campiness.

One of the cases pertained to the fraud of Rs32.431 million, secured by National Garments (Pvt) Ltd, a sister concern of the Tawakkal Group for exports from Pakistan.

In 1993, various irrevocable Letters of Credits were issued by the EMTBC in favour of the National Garments. The tenure of export bills of exchange was 60 to 90 days. However, on maturity dates, the documents were submitted to the EMTBC for payment but it failed to do so.

Though the EMTBC was not recognized by the government of Pakistan, the party was illegally accommodated by the officials of the bank.

The judge sentenced Abdul Qadir Tawakkal to suffer a seven- year term and pay a fine equivalent to the defrauded amount. In case of default on the payment, the businessman would have to undergo an additional one-year term.

Co-accused Hatim Ali, a senior official of the UBL, was, however, acquitted in the case.

Two sons of the elderly businessman - Mohammad Farooq Tawakkal and Mohammad Javed Tawakkal - and three others, Mohammad Younus, Saleem I Kapoorwala and Mohammad Ashraf, were absconders and the court sentenced them to a three-year term for deliberately avoiding legal proceedings.

The second case pertained to Rs66.833 million fraud. The EMTBC issued the irrevocable Letters of Credit in favour of Moon River International, which belonged to the Tawakkal Group.

A seven-year term with a fine of Rs66.833 was handed down to Qadir Tawakkal. The convict would have to undergo an additional one-year term in case of default on the payment. Co-accused Hatim Ali was acquitted in this case also.

The absconders - Mohammed Farooq Tawakkal, Mohammad Ashraf, Mohammad Iqbal, Saleem I. Kapoorwala, Zahid Umer Farooqi and Mohammad Feroze - were convicted in absentia and they were sentenced to a three-year term for intentionally avoiding legal proceedings.

The third case pertained to misappropriation of Rs23.669 million. The EMBTC issued LCs in favour of Taha International, a sister concern of the Tawakkal Group.

The accused was given a seven-year term with a fine equivalent to the defrauded amount. In case of default on the payment, the accused would have to undergo an additional one-year term. Hatim Ali, who was a co-accused, was acquitted.

Hameed Changani, Mohammad Ashraf, Saleem I. Kapoorwala, Zahid Umer Farooqui, Mohammed Feroze were the absconding accused in the case and the court sentenced them to a three-year term for avoiding the court proceedings.

Mr Tawakkal was sentenced to a seven-year term for defrauding the Allied Bank of Rs107.327 in 1985. The businessman was ordered to pay a fine equivalent to the defrauded amount or he would have to undergo an additional one-year term.

Six sons of Abdul Qadir Tawakkal - Junaid Tawakkal, Farooq Tawakkal, Sohail Tawakkal, Mohammad Yousuf Tawakkal and Farid A Qadir Tawakkal - were among 10 absconding accused, who were also convicted in absentia and sentenced to a three-year term for deliberately avoiding legal proceedings.