KARACHI, April 1: An accountability court acquitted a former chief of the National Development Finance Corporation (NDFC) on Tuesday in a corruption case under the National Reconciliation Ordinance 2007.

The accused, M.B. Abbasi, the former NDFC chairman, had moved an application through his counsel for his acquittal under the NRO.

The defence counsel submitted that his client was entitled to get protection under the NRO since he was a public office holder and the case was registered against him during the period mentioned in the ordinance. The counsel pleaded for the acquittal of his client.

The special public prosecutor opposed the application and told the court that the accused was a banker, while indemnity under the NRO was provided only to the political leaders and workers.

The judge, Sadiq Hussain Bhatti, of the Accountability Court-II, pronounced the verdict after recording final arguments from both sides.

The judgment said that the accused deserved indemnity under the National Reconciliation Ordinance (NRO).

According to the reference (27/2003) filed by the National Accountability Bureau, Sindh, the NDFC had approved a financial facility of Rs40 million in favor of M/s West Pakistan Tanks Terminal (Pvt) Ltd as a trade finance facility in 1994.

Subsequently, the facility was converted into working capital funds for the purchase of molasses to be exported abroad, and was disbursed in January 1995.

The accused M. B. Abbasi, the then chairman of the NDFC, allegedly in league with the sponsors, namely Sadaruddin Ganji, his son Hasham Sarduddin Ganji, Saleem Dawood and Sajid Ahmed of M/s West Pakistan Tanks Terminal committed numerous procedural and processing irregularities, while granting the aforesaid financial facilities.

The NDFC itself made inquiries into the matter with the consultation of M/s Raza Kazim Associates.

However, the NDFC had requested for a legal action since the loan amount was still outstanding, while an FIR (40/1997) was registered against the accused in July 1997.

Earlier, the court had also issued warrants under Section 88 (attachment of property of person absconding) of the Criminal Procedure Code (CrPC) against M. B. Abbasi, Hasham Ganji and Saleem Dawood, who were declared absconders. The investigation officer then submitted a report to the court under Section 87 (proclamation for person absconding) of the criminal procedure code regarding the arrest of the absconders.

The other co-accused, Sardruddin Ganji, was released on bail while Sajid Ahmed was remanded in judicial custody. On Jan 15, the court had indicted both the co-accused on corruption charges. They, however, pleaded not guilty and opted to contest the case.

The court adjourned the hearing against the remaining accused till April 14.