The following is an excerpt from documents submitted to the Supreme Court by the children of Prime Minister Nawaz Sharif for the Panamagate hearing. The assertions made in these extracts are solely the view of the respondents. Dawn.com does not endorse or confirm the claims made in the case file.
A document submitted by the children of Prime Minister Nawaz Sharif contains the respondent's version of how Gulf Steel Mills was set up in Dubai.
In brief
The Steel factory was set-up by obtaining loans from a Dubai bank
Upon Mr Muhammad Hussain's passing, shares were transferred to Mr Tariq Shafi
In 1978, Late Mian Sharif sold shares to Mr Abdallah Kayed Ahli
Mr Abdallah Kayed Ahli came to own 75% of the business of the factory
In 1980, Late Mian Muhammad Sharif decided to disengage himself from his steel business in Dubai
Read verbatim extracts from the PML-N case file below:
"...In the year 1973, after severe victimisation and unfair treatment of the then government, Late Mian Muhammad Sharif moved to the United Arab Emirates and had set-up Gulf Steel Mills (the "Company) in the year 1974 in Dubai.
Late Mian Muhammad Sharif carried on this very business through his nephew Muhammad Tariq Shafi. Mr Muhammad Hussain was a partner in the Company.
That the then government of Dubai respecting the knowledge, know-how and experience of Late Mian Muhammad Sharif, not only granted leased land for the factory but also granted, with immediate effect, all utility connections required for the factory.
The steel factory belonging to the Company was established by obtaining loans from domestic bank in Dubai. Thus, no amounts were transferred or remitted from Pakistan for the purpose of setting-up, financing or running of this business.
That, when Mr Muhammad Hussain passed away, his legal heirs through a cessation letter transferred their share, including the rights and liabilities, in favour of Mr Tariq Shafi, the only remaining shareholder, who was holding the shares on behalf of Late Mian Muhammad Sharif.
That, in 1978, Late Mian Muhammad Sharif decided to sell off 75% shares of the Company to Mr Abdallah Kayed Ahli, inter alia, to settle the Company's outstanding liabilities with the domestic bank in Dubai. Consequently, in 1978, Mr. Tariq Shafi sold 75% shares of the Company through a tri-partite agreement. It is pertinent to mention that the money obtained from the sake if 75% shares of Gulf Steel mills was utilised exclusively to settle its outstanding liabilities. Simultaneously, with the execeution of the tri-partite agreement, it was agreed that the business fo the factory would be run under the name of "Ahli Steel Mills Company" (the "Ahli Company").
Of AED 28,500,000 capital of the the Ahli Company, Mr Abdallah Kayed Ahli subscribed to 75% thereof, whilst the remaining 25% were treated as having been contributed by Mr Tariq Shafi in accordance with the tri-partite agreement. In this manner, Mr Abdallah Kayed Ahli came to own 75% of the business of the factory, which was previously exclusively owned by Late Mian Muhammad Sharif. A fresh partnership was executed between Mr. Abdallah Kayed Ahli and Mr Tariq Shafi.
That, in 1980, Late Mian Muhammad Sharif decided to disengage himself from his steel business in Dubai. Therefore, an agreement was signed between Mr Mohd Abdallah Kayed Ahli and Mr Tariq Shafi whereby the 25% shares in Ahli Company were sold to Mr Mohd Abdallah Kayed Ahli against a total sale consideration of AED 12 million."
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