KARACHI, April 3: An accountability court on Thursday terminated the proceedings of a corruption case against the former chairman of the Pakistan Steel Mills, Usman Farooqi, under the National Reconciliation Ordinance 2007.

Earlier, the accused submitted an application to the accountability court-VI under Section-VII of the NRO through his counsel pleading for the termination of the proceedings of the reference (1/2004).

The administrative judge of accountability courts, Karachi, Syed Aley Maqbool Rizvi, who was also the link judge of accountability court-V, pronounced the verdict after recording arguments on the application from both sides.

The court allowed the application under the NRO and terminated the proceedings of the said reference filed by the National Accountability Bureau, Sindh.

The defence counsel argued that since his client was a public office holder and the investigation against him was initiated in 1997, the applicant deserved the indemnity given under the NRO. He pleaded for the termination of the proceedings of a corruption case against the applicant.

The special public prosecutor did not oppose the plea.

According to the reference, the accused, an employee of the Pakistan Steel Mills Karachi (1981-1996) who rose to the position of the chairman, had diverted Steel Mills resources and violated legal procedures in awarding bids to contractors under various operational heads, which caused heavy loses to the national exchequer.

The NAB had also filed four other references (3/2000, 49/2000, 50/2000 and 52/2000) pertaining to corruption, corrupt practices and misuse of authority, against the former chairman of the Pakistan Steel Mills.

Usman Farooqi was convicted in March 2001, in two references, 50/2000 and 52/2000, of corruption. He was sentenced to seven years in jail. He was also disqualified to hold any public office for 21 years.

He was charged with causing a loss of Rs40 million to the national exchequer in the purchase of computers for the Pakistan Steel Mills and also obtaining pecuniary benefits for his family and himself through corrupt practices.

In the remaining two references, he entered into a plea-bargain with the state, surrendering two residential plots, jewellery worth Rs4.67853 million, saving certificates worth Rs253.836 million, Rs2.324 million in cash along with 11,003 pounds sterling that were held in Midland Bank, Baker Street, London in November, 2001.

Interestingly, he had also surrendered Rs39.5million in April earlier that year.

Mr Farooqi, along with his wife and daughter, was also charged with the accumulation of assets beyond their known sources of income.