LAHORE: Senator Aitzaz Ahsan has written a letter to the National Accountability Bureau Chairman, Qamar Zaman Chaudhry, requesting him to stop the bureau from acting ‘under the influence’ of Railways Minister Khwaja Saad Rafique in Royal Palm Golf and Country Club case.

“The railway minister has taken personal interest in the eviction of the Mainland Husnain Pvt Limited (MHPL) management from the club, indicating he is ensuring the filing of a reference by NAB against its sponsors and directors. We do not expect NAB to act under the dictations of persons and authorities extraneous to the applicable law and the mala fide intent of Railways Minister Khawaja Saad Rafique,” Mr Ahsan said, addressing the NAB chairman.

Mr Ahsan, who is also a counsel for the club management, alleged the railway minister was openly influencing the course of the NAB process.

Citing NAB’s last month letter which directed the financial institutions in question to “mark caution/lien” on all accounts of the club management, the Senator raised suspicions that the bureau acted under the minister’s influence.

“The allegations against MHPL and our clients have already been investigated at length by NAB and according to its (the bureau’s) final investigation report (2013) placed on record before the Supreme Court the investigation deserves to be closed,” the letter says, adding that NAB itself had encouraged the railway to reach a settlement with MHPL in relation to the dispute relating to the ‘Implementation Agreement’ back in 2011.

“After that, the executive committee of Pakistan Railways in April 2012 had approved a settlement with MHPL regarding the novation of Implementation Agreement, subject only to the consent/approval of the Supreme Court. Given that it remains the position of NAB that Railways should enter into a settlement agreement with MHPL, the freezing of the accounts of MHPL in the interim period is entirely unjustified, therefore, NAB’s letter should be withdrawn,” it pleads.

The letter further says legality of the ‘Implementation Agreement’ is currently sub judice before the SC. “NAB is not a party to those proceedings but has been appearing before the court in that matter. During a hearing in Jan 2015, MHPL’s offer to split all profits equally with Railways was given time to provide a counter-proposal. In these circumstances, the freezing of the accounts of MHPL is not warranted,” it reads.

It says the purport of Section 23 of the NAB Ordinance is to prevent the proceeds of crime from being misappropriated. “In this case, not only there is not any basis for claiming illegality, but the amounts in our clients’ accounts are self-evidently the product of bona fide business activity and subject to utilisation in the ordinary course of business. Freezing these accounts is entirely outside the scope of Section 23 of the NAB Ordinance.”

According to the NAB’s final investigation report about the officials involved in award of lease of the Railway Golf Club Lahore and others, the bureau concluded: “The bidding process is found to be transparent in most of the aspects except one issue of increase of lease period. Lease period was not mentioned in the advertisement, however, 33 years was reflected in first approval of working paper. After scrutiny of all available record, statements of witnesses and version of alleged then management of Pakistan Railways, it is concluded that the contract of lease of Golf Club Lahore was awarded after proper advertisement, pre-qualification of firms, bidding process comprising technical and financial proposals, negotiations with the highest bidder and signing of Implementation Contract by both the parties.”

NAB further said MHPL had offered very beneficial terms, which would definitely increase the railway revenues.

The bureau recommended that the inquiry against the then railway management may be closed. “The terms of M/s Mainland Husnain be implemented immediately and future course be adopted in the light of Supreme Court (verdict) as and when issued in future,” it said.

The railway had taken over the Royal Palm Golf and Country Club last month claiming its management defaulted on payments to government. Mr Ahsan, however, termed the railway’s action “in violation of the restraint orders of the court”.

The club management challenged the railway’s action in the Lahore High Court. On July 4, the court provisionally allowed the management to run sporting facilities and other services at the club without disturbing the possession of the railway administration.

The club also moved the LHC with a plea that the railway had committed contempt of court by not de-sealing the club’s administrative block. On this, the court issued notices to the railway authorities and minister Saad Rafique for violation of its previous order.

Published in Dawn, July 20th, 2016