KARACHI, Sept 6: A division bench of the Sindh High Court on Friday granted bail to ex-director Shipping Management, PNSC, Commodore Mirza Ashfaq Beg (retired), a co-accused with former navy chief Mansoorul Haq in a case pertaining to purchase of three ships, in a sum of rupees one million in the accountability reference No 25.

The bench comprised Justice Muhammad Roshan Essani and Justice Mujeebullah Siddiqui.

Commodore Beg was arrested along with Mansoorul Haq on July 16 on charges of shady deals in purchase of the three container ships by the PNSC, causing a loss of US$ 19 million to the state exchequer.

Mansoorul Haq has filed a petition in the SHC, challenging institution of a fresh reference against him in view of the plea bargain settled before an accountability court at Rawalpindi in reference No 43/2001, wherein more than double the amount alleged against him was paid.

Representing the co-accused, Barrister Azizullah Shaikh submitted that perusal of the reference showed that allegation against the applicant was that he had rejected the proposal initially for the purchase of ship, Apolonia, (renamed as Swat), but subsequently it was approved by the board of directors.

His argument was that the prosecution had itself stated that Commodore Beg had performed his job and rejected the proposal for the purchase of the ship on technical grounds.

He argued that the applicant was overruled as he had no authority to prevent PNSC chairman and the chief of naval staff.

Mr Shaikh said the ship had been purchased on the basis of American Ships Classification Society Report. He claimed that the applicant was not a member of the committee which negotiated the transaction and the prosecution had not produced any material to show that the applicant acquired any monitory benefit out of the deal.

He argued that it was a case of further inquiry and consequently his client was entitled to be released on bail.

Mr Anwar Tariq, representing NAB, opposed Barrister Shaikh’s plea. When asked to give the specific role assigned to the applicant in the alleged deal of purchasing the ship and causing loss to the PNSC, Mr Tariq referred to the written note containing the role attributed to Ashfaq Beg.

He further contended that subsequently when the applicant’s subordinate, Haziq Swaleh, G.M. (M&R), was directed to proceed to Hong Kong and Taiwan for the inspection of the selected vessels, including MV Apolonia, he did object nor he recorded his dissent as director of the board.

The court was of the view that the application in his initial report rejected the proposal for the purchase of the ship, MV Apolonia, but there was no subsequent report in which the applicant had resiled from his earlier opinion.

The bench found substance in the contention of Mr Azizullah Shaikh that the applicant was overruled by his bosses and he had no authority to prevent them from entering into the deal, causing loss to the PNSC. He was not a member of the committee which negotiated the purchase.

On a tentative assessment of the material placed on record, the court was of the opinion that it was a case of further inquiry as envisaged under sub-section (2) of section 497 CrPC.