ISLAMABAD: The Federal Investigation Agency (FIA) has constituted a three-member inquiry committee on allegations levelled by the joint investigation team (JIT) in the Panama Papers case that the Securities and Exchange Commission of Pakistan (SECP) had tampered with the record sought by it of the Chaudhry Sugar Mills.

The inquiry committee was formed on the directives of the three-judge Supreme Court implementation bench in the case, headed by Justice Ejaz Afzal Khan, and the approval of FIA Director General Muhammad Amlish.

National Response Cell Deputy Director Ayaz Mehmood, FIA Academy Assistant Director Tahir Tanveer and Islamabad Zone Cyber Crime Cell Inspector Farooq Latif are in the committee.

Inquiry committee formed on directives of the Supreme Court implementation bench in Panama Papers case

The Supreme Court had ordered the FIA on June 19 to investigate the role of SECP Chairman Zafarul Haq Hijazi with respect to the allegation and submit a report.

During the proceedings on June 20, Attorney General Ashtar Ausaf Ali told the court that the FIA had commenced the inquiry, which would be completed soon.

Retrospective closure of inquiry

In its complaint before the Supreme Court, the JIT alleged that it had transpired during interrogation of witnesses from the SECP that its chairman was allegedly instrumental in closing the investigation of a money laundering case against the sugar mills. The investigations had commenced in 2011 but were closed last year, with effect from Jan 8, 2013 at the sole behest of the SECP chairman, the JIT alleged.

It said the act of the backdated closure of the inquiry was a criminal act with a view to facilitating those against whom the present investigation was being conducted.

The JIT stressed that it would be better not to divulge the identity of the witness so that his and his family’s safety were not compromised.

When the witness sought permission from the SECP commissioner to collect the record of the inquiries initiated and pending against the Sharif family as officially asked by the JIT, the latter, quoting the chairman, asked him to restrict the exercise to the collection of the inquiry reports from two local departments, the report said. The reason cited for the instruction was maintaining secrecy.

The report said that the orders to tamper with the record and close the investigation of money laundering in back date had been executed by SECP Executive Director Ali Azeem Ikram, who was nominated to be a member of the JIT by the chairman with the alleged intent to subvert the current inquiry.

The SECP, in its rejoinder before the court, denied the allegations and explained that the JIT had incorrectly mentioned its chairman as being instrumental in closing the investigations about the mills.

The commission said the present chairman had been appointed much after the closure of the matter by the respective officer. Therefore, attributing the closure of the investigation to the current chairman was mala fide and against the record, it said.

The SECP said the JIT had erred in comprehending the factual issues and misread the record and apparently any statement attributed to the officers might be the result of coercion which should not be taken into record in view of the facts on record.

Published in Dawn, June 25th, 2017