Apropos Khwaja Asif’s TV talk, it is appropriate to set the record straight about the finest public charity in Pakistan. If he is a man of any substance, he will apologise to Imran Khan, Shaukat Khanum Memorial Trust (SKMT) and Imtiaz Hydari.

Let me tell you why. First, the facts on the investment: the SKMT made a long-term real-estate investment with HBG in 2008 when the market fundamentals across the GCC were excellent, with a plan to develop it into a project.

The decision by the SKMT to invest with the HBG was not a speculative play, but a long-term investment based on sound judgment of the market fundamentals in a solid real estate, prime location in Muscat in which the HBG itself has committed a substantial amount.

It is of, course, a fact that Imran Khan had nothing to do with the decision as it was taken by the investment committee of the board of directors. I, being a director in the SKMT at the time, refrained from voting to avoid a conflict of interest.

There is a misconception being propagated that just because the investment is through an offshore company, it is akin to a ‘benami’ transaction. This is a false representation as private equity investments across the world are conducted from such jurisdictions because they are considered investment-friendly jurisdictions.

Pursuant to the severe correction in the real estate market following the global economic crisis, it was rightly decided to defer the project.

The investment has no leverage. However, given the fact that there has been impairment in land value, the HBG has taken steps to absorb the impairment in value by granting increased shares to the SKMT, i.e. the reduced value of Sugarland shares will be compensated by higher percentage shareholding of the SKMT in Sugarland BVI.

This preserves and protects SKMT investment. Additionally, the HBG has also provided an undertaking to assist the SKMT’s exit from the investment with capital protected.

Now to his specific accusations:

A case of money laundering? The answer is an emphatic ‘no’. The investment was not transferred out of Pakistan. It was not for any personal gain. The investment was from the Endowment Fund, not the Zakat money.

An attempt to hide the transaction so we can wonder at his discovery? Definitely not. It is publicly disclosed.

An SPV (special purpose vehicle) with an offshore jurisdiction is benami? Again, you are wrong. The entities in this investment have names and declared shareholders who are audited by one of the big four accounting firms.

Investment was speculative and the real estate worthless? No, it was not, as explained above. This is prime land in prime location with excellent development potential. The investment has lost value resulting in a major loss for the SKMT? Khawaja Asif reads the balance sheet but is unable to differentiate between a note to the accounts and the actual adjustment for impairment in the accounts.

Capital protection/guarantee issued by a corporate entity is worthless? How does Khwaja Asif know? Does he know the standing or stature of the corporate and the circumstances surrounding it? Unfortunately he has not bothered to make any inquiries.

IMTIAZ HYDERI Dubai