ISLAMABAD: The Supreme Court declined on Monday to entertain the National Accountability Bureau’s (NAB) request to vacate a stay order given by the Lahore High Court (LHC) in 2016 against its inquiry into the privatisation of MCB Bank.

Headed by Chief Justice of Pakistan (CJP) Umar Ata Bandial, a three-judge bench took up an application filed by the bureau seeking to get vacated the LHC’s stay order of Nov 25, 2016, against a probe into the role of Mian Muhammad Mansha, a prominent industrialist, in the sale of MCB Bank.

The apex court observed, however, that the LHC should determine the matter of jurisdiction within three months.

Jehanzeb Bharwana, the bureau’s additional prosecutor general, said NAB had initiated the inquiry into MCB Bank’s privatisation in line with the Supreme Court’s 2014 directive. The bureau’s chairman had authorised a formal inquiry in July 2015.

The NAB stated it was conducting the inquiry to probe allegations like extension of favours to the National Group in the pricing and privatisation process and the use of MCB Bank funds for payment to the government for the purchase of MCB Bank’s shares in the third tranche.

Mian Muhammad Mansha then filed a civil suit before the LHC in Oct 2015 against the NAB inquiry, arguing that it had no jurisdiction to conduct the probe since the National Accountability Order of 1999 authorised only the Privatisation Commission (PC) and the State Bank of Pakistan to do so.

The National Accountability Bureau contended that the LHC’s stay order contained errors as it had ignored the fact that a similar case was being heard by the Islamabad High Court. The bureau further argued that criminal proceedings cannot be stayed in view of section 56(e) of the Specific Relief Act 1877 as well as the law laid down by the superior courts.

Mian Mansha said in his reply that the bank’s privatisation fell within the domain of the PC Ordinance since the transaction was duly endorsed and owned by the government as well as by the Council of Common Interests on May 29, 1997.

Mian Mansha said Section 27 of the PC Ordinance barred the federal government from carrying out any scrutiny or investigation into any privatisation after a lapse of over one year since the completion of the process.

The rejoinder described as misconceived the NAB stand that it had initiated the inquiry on the Supreme Court’s directive, arguing that the matter was ultimately dismissed by the apex court in April 2015.

The rejoinder stated the Supreme Court had never ordered any inquiry into the bank’s privatisation, accusing the bureau of “deliberately prolonging the proceedings” in a pending suit before the high court for almost two years at a time when evidence had been recorded and no delay could be attributed to Mian Mansha.

Published in Dawn, March 15th, 2022