Dear reader, online ads enable us to deliver the journalism you value. Please support us by taking a moment to
JIT report carries seeds of upheaval
ISLAMABAD: The Joint Investigation Team (JIT), constituted by the Supreme Court to probe money laundering allegations against the Sharif family, set in motion a political upheaval by reporting that the prime minister and his children had accumulated wealth beyond their known sources of income.
The JIT’s damning report, submitted to the Supreme Court and spread over ten volumes, declared that both Hussain and Hassan Nawaz were used as proxies to build family assets.
Key developments
- Maintains that PM’s family has assets beyond known sources of income
- Recommends NAB reference against PM, his children
- Says Sharif-owned enterprises mostly ‘loss-making’, don’t justify family’s wealth
- Qatari letters declared a ‘myth’
- Unearths new offshore company chaired by Sharif
- Ministers reject JIT report as ‘trash’
Consequently, the six-man JIT concluded that it was compelled to refer to sections 9(a)(v) and 14(c) of the National Accountability Ordinance (NAO) 1999, which deal with corruption and corrupt practices, though such charges are yet to be proven in an accountability court.
Read complete text of the JIT report here.
A final decision on whether to submit a reference to the National Accountability Bureau (NAB) will be reached when the three-judge Supreme Court, headed by Justice Ejaz Afzal Khan, gives an order to this effect.
The court will hear both the petitioner, namely Imran Khan and others, and the respondents, before handing down its final verdict.
The JIT report also highlighted Articles 122, 117, 129 and other sections of the Qanoon-i-Shahadat Order 1984 (Law of Evidence), which places the burden of disproving the allegations on the person facing accusations.
The JIT pointed out failure on the part of the Sharifs to produce the required information that would confirm their “known sources of income”, saying that prima facie, it amounted to saying that they were not able to reconcile their assets with their means of income.
See: Sharif family’s tax returns turned out to be handy for JIT
The report said the financial structure and health of companies in Pakistan that are linked to the Sharifs also do not substantiate the family’s wealth and a significant disparity exists between the wealth declared by the Sharifs and the means through which they generated income.
‘Irregular’ movement of money
Moreover, the report highlights the “irregular movement of huge amounts in shape of loans and gifts” from the Saudi-based company Hill Metals Establishment, the UK-based Flagship Investments Limited and the UAE-based Capital FZE, to Nawaz Sharif, Hussain Nawaz and the Pakistan-based companies of the prime minister and his family.
“The role of offshore companies is critically important as several offshore companies (Nescoll Limited, Nielson Enterprises Limited, Alanna Services Ltd, Lamkin S.A. Coomber Group Inc and Hiltern International Ltd) have been identified to be linked with their businesses in UK,” the report states.
These companies, it said, were mainly used for “inflow of funds into UK-based companies, which not only acquired expensive properties in UK from such funds but also revolve these funds amongst their companies of UK, KSA, UAE and Pakistan”.
The JIT also highlighted that the companies where the Sharifs were acting as shareholders, directors or beneficial owners were primarily family-owned businesses. These companies were incorporated in the 1980s and 1990s, when Nawaz Sharif was holding public office.
Being shareholders, the Sharifs injected nominal capital as seed money and these companies were mainly entrusted with borrowed funds from banks, financial institutions or foreign-incorporated ‘special purpose vehicles’.
The companies also borrowed funds, at their inception, and rolled over funds with other facilities; foreign currency funds were generated to install plants and machinery.
But going forward, a majority of the companies were either non-operational or were not functioning at maximum capacity and were in loss, having negative equity, such as Mohammad Buksh Textile Mills Limited, Hudaibya Paper Mills Limited, Hudaibya Engineering Company Private Limited, Hamza Board Mills Limited, and Mehran Ramzan Textile Mills Ltd.
Due to weak performance and in absence of accumulated or operational profits, dividends were not declared, except for a few years. These companies were mainly loss-making units and no significant turnaround was observed over the past 20 years or so.
Accumulating assets by proxy
About Ms Kulsoom Nawaz, wife of Nawaz Sharif, the JIT stated she had been part of the family business and filing tax returns since 1984-85. Her total assets increased 17.5 times during the course of one year; from Rs1.64 million in 1991-92 to Rs28.62 million in 1992-93, against a reported income of only Rs279,400.
The JIT found that the accumulation of Hussain Nawaz’ assets showed a sharp spike in the early 1990s, and then again in 1997-98, with no declared source of income.
The JIT believed that this build-up of assets was through “irregular means” and that Hussain was used as a “proxy” to build the family’s assets.
Hassan Nawaz’ assets also showed a similar spike in the early 1990s with no declared source of income. This was a period when the Sharif family was in power.
The report did not spare Finance Minister Ishaq Dar, either. It pointed out that he did not file income tax returns between 1981-82 and 2001-02, which amounted to tax evasion.
An exorbitant increase was also observed in his assets since 2008-09, for which source of funds and income details were not furnished, despite repeated requests.
The JIT clearly stated that prima facie, Mr Dar possessed assets disproportionate and beyond his known means, adding that he invested 5.5 million British pounds in Baraq Holdings in the UAE, but the source of these funds was not disclosed, only that around 4.97 million pounds were given to him by his son.
Mr Dar also gave Rs169.27 million to charity, but a major chunk of that was given to his own organisation, keeping the funds within his own access.
Similarly, National Bank of Pakistan President Saeed Ahmed registered as a tax-payer in 2015, but no record of his returns was available prior to 2015. In his income tax returns for 2014-15, Saeed Ahmed declared foreign income amounting to Rs20 million, but no evidence was available regarding the source of that income. In his wealth statement for the same year, Mr Ahmed declared foreign remittances worth Rs17.13 million, the source of which cannot be ascertained.
The JIT also recommends re-opening the cases of Hudabiya Paper Mills Ltd and Hudabiya Engineering Ltd for further investigation and re-trial on the basis of new evidence.
The Hudaibiya mills reference remained in the cold storage for 12 years after it was adjourned in 2007 because the Sharifs were in exile. It was later quashed by the Lahore High Court in 2014, after the incumbent Qamar Zaman Chaudhry was appointed NAB chief.
Suspicious transactions
Investigations also revealed that the process of money laundering actually started in Sept 1991, as opposed to the first transaction in Aug 1992 identified by FIA and NAB investigations.
These transactions showed that funds of $2.23 million were deposited in the first two accounts, opened in the name of incumbent NBP president Saeed Ahmad and Mukhtar Hussain.
Subsequently, all the money from these accounts were transferred to the accounts of Musa Ghani and Talat Masud Qazi through dollar bearer certificates (DBCs) to hide the source of the funds.
Referring to mutual legal assistance provided by the UAE Ministry of Justice, the JIT held that no transaction worth 12 million UAE Dirhams, claimed by Sharifs to be the sale proceeds of 25pc shares of Ahli Steel Mills (previously known as Gulf Steel Mills) ever took place in the name of Muhammad Tariq Shafi — the prime minister’s cousin.
There is not a single document that can provide the basis for any money trail for the purchase of the Avenfield London properties and the businesses of the sons of the prime minister, the JIT observes, declaring the documents produced as fabricated and fake.
After checking with Dubai Customs, the JIT concluded that no scrap machinery was transported from Dubai to Jeddah in 2001-02.
Thus, the team concluded, it was proven that the documents or record produced by the Sharifs regarding the sale of 25pc of the mill’s shares were “unauthentic, unverified, fake and fabricated”.
Besides, the attached share sale agreement of 1980 and the letter of credit for the transportation of scrap machinery from Dubai to Jeddah were also declared fictitious.
Similarly, Tariq Shafi never handed over 12 million dirhams to former Qatari prime minister Shiekh Hamad bin Jassim bin Jaber Al Thani in 1980, as claimed by Sharifs before the apex court. Mr Shafi, in fact, tried to mislead the Supreme Court, the JIT deplored.
‘Evasive’ PM
During his interrogation, the JIT said, PM Sharif was visibly evasive on most of the questions related to Gulf Steel Mills and, after two and half hours of questioning, the prime minister only admitted to knowing Mohammad Hussain as his maternal uncle.
The JIT also dubbed the two letters from Sheikh Al Thani “a myth and not a reality”.
The JIT highlighted how the prime minister not only concealed assets to the tune of Rs45 million, but also misreported in his wealth statement for the year 2013.
The prime minister, the report said, enjoyed pecuniary benefits other than dividends from his businesses in the shape of unexplained inflows to his personal bank accounts on a regular basis from the business profits of his son and businesses run by him, purportedly in the form of gifts.
The prime minister is a minor direct shareholder in the closely-held family companies when they are not profit-bearing, but these companies are continuously revolving funds amongst themselves and their shareholders/directors/sponsors and offshore companies, the JIT said.
The JIT also unearthed a new offshore company, FZE Capital in the UAE, which had Prime Minister Nawaz Sharif as its chairman.
The report said the prime minister kept shares in the name of his wife, sons and daughters, who were not financially independent at the time; thereby retaining control over the business due to his strong political and family influence.
Published in Dawn, July 11th, 2017
Comments (80)
Thank you Khan Sb
And now......... they will reject it. Shameful
Salute to JIT because of its report, which gave me a sense that there are still some people exist in Pakistan which bravely caring their country.
The accountability strengtheners the democracy by giving a corruption free governing system...
This is the best opportunity that has come up during my lifetime for Pakistan to turn around. Set the precedent; politicians should not be allowed to get away with brazen criminal activity. Politics should NOT be the most assured path to increase personal wealth. Politicians are servants for the people! Elected by the people. Arrest and destroy this dynasty based on the investigation. Set the precedent.
The headline is weak. Why not just out and say that there is also a possibility of ouster? Why stop at reference?
I am glad that SC made the JIT. Brilliant job by JIT. Kudos to the whole team of JIT who did their job honestly despite threats to their lives. Now it is up to the SC to bar this whole Sharif family from holding any public office.
Great efforts but in vain.....
Unfortunately it is happening through out the world...corruption is a disease...this world, is not to be peaceful about it, for that has been the case for many people that has caused the upheaval of such tyranny, nor we should turn the other way, but we must take appropriate actions to eliminate the thriving forces of such darkness in our world..
Where are the answer to 13 questions posed by SC?
I hope Now, there will at least be some limits to unabated corrupt practices by both PPP & PMLN, I further hope sanity will prevail, N Pakistan will prosper after all this exercise
Thank you IK... But the problem with most people in Govt is that they dont have dignity... they will never admit "Yes I have done wrong and I will step down" on the contrary they accuse others... very sad.
How do we tell between information and disinformation?
Chance to start accountability from this case .. lets hope for best.
It will be interesting to see how SC handles the rejection narratives
Full credit to Supreme Court and JIT for doing a wonderful job in very difficult circumstances.Now the true face of Shareef family is in front of every Pakistani.As tax payer citizen of this country I demand exemplary punishment to those who looted tax payers money and build palaces for their family.
@Bitter Truth Read the full report and you will find answer to every question raised by the apex court from JIT!
Its PPP's turn next.
God bless you, JIT
Ifs, buts, probably, might be, any thing concrete ?
NS&Co. should be taken to the cleaners and made an example for all to see, otherwise all this will account for nothing.
Now a better Pakistan, InshaAllah...
Damning report but it is more like charges and it has to be proved in the court where evidences has to be provided by the accuser and defender does not need to provide anything other than defending. Almost impossible to prosecute in the court unless third umpire use the courts.
“The role of offshore companies is critically important as several offshore companies (Nescoll Limited, Nielson Enterprises Limited, Alanna Services Ltd, Lamkin S.A. Coomber Group Inc and Hiltern International Ltd)"
Who is the one who comes up with such names for these companies?
Democracy has its own system of reforms. First corrupt PPP was removed and now it's PML-N turn. May be in next 20 years, we have a better and honest governance.
Is there anything like Honor, Respect, Dignity for these people or these are the talks of mere books !!
@PakiForum .. We get rid of the NS, IK , PMush and AZar etc. Then finally we will have leadership layer empty.. Now the vacancy will require the pure and purified...the question is where do we get those pure in Pakistan.. Lets put an advertisement to outside world.
Upheaval? I only see a ray of hope dear editors
This article has just made my day, JIT has completely exposed PM and family without any hesitation, and now they have no moral justification of ruling this country anymore, well of course we are not expecting a resignation from them, but Hey! don't worry Pakistanis, SC is going to throw them in jails very soon. Our people and institutions are getting stronger. Thanks to democracy.
@Shaikh Ask Khan sahib to present himself and his aides on left and right side to SC and ask them to form a JIT.
Culture of money laundering, bribes and embezzlement of funds must be eradicated from the country at once. All politicians, government officials must be screened out thoroughly who are involved in money laundering, bribes and corruption a SET PROCEDURE for investigating illegal money and properties must be made to screen out such employees/politicians, which they earned beyond the means of known sources of their income in Pakistan. All money must be recovered from such corrupt peoples, they must be dismissed and punished though a court of law. This is the time to save the country.
Seeds of upheavan was carried by those people who misused democratic system for their own personal financial gains. In which democracy do you find family owned parties which are treated like personal companies and leadership is automatically transfered to their children?Which other democracy do you find a government in power after so many corruption charges?
Pakistan is better off without such people!
Corruption, the word was coined for Pakistani politicians
Please nation it is now time to get rid of Corruption Mafias PML-N and PPP for the survival of Pakistan
@Bitter Truth All evidences have been provided. I didn't read any if's and but's.. Maybe you read another article
I would like to thank Imran Khan from the bottom of my heart. You have done for this country that no one had even dreamed of.
@Classic Dont give a sweeping statement against all politicians.Many honest politicians are here to serve the country.If our courts starts functioning as they are doing now I am confident that no minister or Prime Minster would dare do corruptions. Quaid-e Azam was also a politician who gave this country to us.
In first instance all Police Officials, Judges, Commissioners, Deputy Commissioners and other such agencies officials who are involved in receiving bribes and embezzlement of money etc. must be cuffed and they must be dismissed, punished and the money which they earned through unknown source of income must be recovered from such corrupt officials BECAUSE THEY RESPONSIBLE TO CURB THE CORRUPTION AND IF THEY ARE HONEST THERE IS NO CORRUPTION.
Thank you I'M and thank you JIT... nation needs justice to revive
WOW - Wonder why our investigative machineries are being accused of incompetent when it comes to investigations. They weren't able to find the killers of either Benazir, Liaquat Ali Khan or Zia whilst in this case they allegedly unearth, analyze and investigate - just within 60 days transnational transactions and were able to meet the reporting deadline as well. WOW.. Sounds like a movie. A very well scripted movie
People of the country needs to be prepared to face the challenge and get rid of this cabal of thieves once and for all. Short-term upheaval for long-tern reforms and integrity of the system is worth the troubles.
Stay steady and steadfast. Do not let this moment vanish without a profound change for the good.
PPP is lucky in the sense that this JIT episode has given it enough time to forge or create false documents in a scientific manner so as to hide its corruption if nation tries to bring them to justice.
Wow. This is why the maintain the status quo because they are sucking blood from Pakistan and spitting it outside. Just a quick question the U.K. Tax system is pretty tough, how are they hiding all this money in UK. I think the should involve U.K. Tax authorities and do a joint investigation into this. I also wonder this is just one family, what about many other families who does the same to hide their wealth and tax.
@Bitter Truth;
'Ifs, buts, probably, might be, any thing concrete ?'
Yup, very concrete, Pakistan is all set for the birth of true democracy like Turkey and shun the sham democracies of South Asia.
@Abdul Majid CANADIAN;
Supreme Court does not make JIT's on popular demand, sound legal basis is required.
Great job , elicited detailed possessions and transactions of sharif family out of evasive and misleading data.
Thank you Imran Khan and Dr. Tahir-ul-Qadri.
All credit to Imran Khan. This is an historical day for Pakistan. Nobody, in the history of Pakistan has fought with such courage against the "corrupt ruling monarchy". Now, when the wrongdoings of Sharif family has been proved, what is causing the delay in disqualifying Nawaz Sharif? We don't want to end up punishing only the "pawns" (SECP chief etc) and let life go on. NO! it should come to a logical end soon, NOW!
In such accountability, there will be no politician left as we know how quickly they grow rich after being in a government. It should be a rightful demand to keep all politician under a SIX department investigation committee.There should be equality no random picking of a party.
@Bitter Truth read it in PDF version online. No one will present truth to you in plate, go find it on Google and read it
Thank you Imran Khan. Undoubtedly you are a true example of a great leader.
Dar gave charity to his own organisation... 169 million. Speechless, but well done JIT and Supreme court.
This is just the beginning of a new dawn! I am very happy...
Don't need JIT report to know this. Before 1990s, top five Richest Pakistanis were all industrialists. Now top 3 include Zardari and Sharif.
This is how elite mafia ruling the dynasty.
The history in the making! Bravo JIT!
I don't know if the current JIT report will be enough to remove Nawaz Sahrif from the post of PM, but one thing I know for sure that Imran Khan will never become Pakistan's PM.
What does volume of papers indicate? I don't think it is possible for the JIT to even scan through these documents in 60 days. So, how can it make recommendations.
Based on the past experience the whole case will linger for end number of years. Now it's up to the people of Pakistan to fast track the justice by showing power of a common man. This is the time when to teach lesson the corrupt politics of Pakistan.
Evidence recorded to prove case against the PM and avoided that could prove his innocence amounts to dishonesty.
@Desi_Baba - People of Pakistan should demand for Pride of Performance for all JIT members.
Sad days for Pakistan, we never learn from history. Cutting the tree when it's about to give fruite is a norm.
Pakistan is moving forward, Good for Pakistan, Credit goes to IK.
Supreme Court should ask PM to step down while this plays out in court
Supreme Court must act quickly and decisively here - if the PM will step down with them asking him that's the better option but if he won't they should disqualify him and his family members until this case is resolved
Supreme court should conclude this case as soon as possible and then the accountability of the other owners of off shore companies should also start. Nobody should be spared. This is a good opportunity to get rid of corruption and corrupt people.
Simply immaculate. ! Salute to JIT . Thoroughly Enjoyed reading and the way Sharifs tried hard to save their corruption and looted money.
Salute to all JIT members, Pakistan is full of good & honest peoples only the hurdle of corruption that has been imposed by some to meet their agenda has to be removed, this is the first step to do so.
Theft cannot be hidden forever. Here we are with the facts coming straight out.
Judgement based on facts and figures. SC will decide The Report and will be in a better position to confront with NS and family for explanation of wrongdoings as ascertained in JIT.
To be honest, I did not expect the JIT to come up with such a strongly worded report that clearly points fingers at the sitting PM and his family. But, they have proved me wrong. Congratulations on a job well done, gents of the JIT, you have restored my faith that there indeed are some good, honest people left in this country.Bravo to you. Now over to the SC. As a tax paying citizen of Pakistan, and for the crimes committed against me and my fellow citizens, I implore the SC to put this corrupt family where it belongs, in jail.
@rustam Pride of Performance? Nobel prize, sir
The people must now show their power and come out into the streets in peaceful regular demonstrations without any political affiliations. Not only doe we have a business tycoon PM of our country but also one that seemingly runs companies that don't make any money. No wonder we are borrowing all the time. Its exactly how he runs the show. He borrows and then writes off, only in the case of Pakistan he cannot write off the loans and the nation will need to repay.
I am using your outlet for my future to be as I am a senior citizen. Cannot go out and protest against the misdeeds of my country' PM. Still the whole problem is not solved. PML N distributed REWRRIN when the SC gave its verdict earlier. I considered it to demise of that part and inception of free judiciary era.
NS & Co should now be ready to face how this much wealth they amassed through commissions bad deals. Their anxiety to inaugurate different projects, defending other sunk projects will also be probed in near future. MASSACRE OF MODEL TOWN will also come into the notice of SC OF PAKISTAN. Now onus of proof will on your shoulders. Well Done Arshad of ARY, thanks to IK and Shaikh Rashid for you perseverance. Whole of Pakistan is Proud of Your assistants.
In one Master stroke SC will decide which direction Pakistan's democracy go? That will decide the next on the line Zardari's future as well. And it will either make Imran the new King or just a marginal benefactor of the saga.
No one should be above the law if Pakistan has to progress. Sharif and his family members stole the money of the people of Pakistan. They deserve to be punished for cheating and stealing public money. Sources of income of all politicians who ruled the country must be investigated.
Good attempt to try and get rid of corruption! However where all political parties are the same with no exception there is no hope left for future of pakistan.
Thank you JIT for your excellent performance despite so much daily criticism and pressures you faced. Your passion and expertise in finding out the truth within budgeted deadlines needs commendations by all. Cheers!
It is interesting to note 'IRREGULAR MOVEMENT OF MONEY' described in the article. Only an immensely corrupt finacial mind would devise such schemes comprising a multitude of company base outside Pakistan that our noble Prime Minister can come up with such prifitable ideas. If only he would have used his evil genius for the benefit of Pakistan and its people we Could have become a participating member og th G20 nations or atleast be invited to the their recent Hamburg conference like the Indian Prime Minister.