Commission to probe offshore companies, written off loans

To have powers to question any person, enter any
building, sort out and confiscate record; terms of
reference announced; PM writes letter to CJP

ISLAMABAD: The federal government on Friday issued the Terms of Reference (TORs) for the inquiry commission to be constituted for probing the Panama Leaks involving some 200 Pakistani businessmen and politicians for their alleged involvement in the offshore companies. The commission would have the powers to question any person and enter any building considering the presence of record there and could sort out the said record and take it into its possession.

The Panama Papers had revealed the names of some 200 businessmen and politicians from Pakistan, including members of Premier Nawaz Sharif’s family for establishing offshore companies in a tax haven.

Soon after the prime minister’s address to the nation on Friday announcing to write a letter to Chief Justice of Pakistan for constituting an inquiry commission to probe the much-talked-about issue of Panama Papers, the Ministry of Law and Justice issued a notification on the appointment of an inquiry commission with undisclosed three members.

The government also issued the Terms of Reference (TORs) for the inquiry commission and the notification reads as; “WHEREAS, it has been reported in the national media, on the basis of information published in the foreign press published in the foreign press and broadcast on electronic media that certain documents from a law firm in Panama (the Panama Papers) and other sources indicate involvement of Pakistani citizens, persons of Pakistan origin and legal entities in offshore companies.

The notification further stated that reports had also appeared in the national media regarding involvement of holders of public office in writing-off bank loans through political influence and transfer from Pakistan of funds which have originated from corruption, commissions or kickbacks; It further says that the federal government deems it expedient in the public interest to appoint a commission of inquiry to inquire into the aforesaid matters.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 3 of the Pakistan Commission of Inquiry Act, 1956 (VI of 1956) (the Act) the federal government is pleased to appoint a Commission of Inquiry comprising the three members, says the notification without giving names of the members of the commission.

The Terms of Reference (TORs) for the commission of inquiry is to examine information relating to involvement of Pakistani citizens, persons of Pakistan origin and legal entities in offshore companies in Panama or in any other country; and, involvement of former and present holders of public office in writing off their own bank loans or those of their immediate members of family through political influence; and, transfer from Pakistan of funds which have originated from corruption, commissions or kickbacks to determine whether, in any case referred to in (1) (a) and (b) above, any law for the time being in force in Pakistan has been infringed.

According to TORs, in case the answer to (2) above is affirmative, to determine responsibility for such infringement; and, (4) to make such recommendations as may be deemed appropriate.

Similarly, the commission shall, in addition to the powers under section 4 of the Act, have all the additional powers under section 5 ibid, including the powers mentioned in sub-paragraphs (1) to (4) below: -

(1) The commission shall have powers under the Code of Civil Procedure, 1908 for: (a) summoning and enforcing the attendance of any person, including a tax expert or accountant, and examining him on oath; (b) requiring the discovery and production of any documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses on documents; and, (e) requisitioning any public record or copy thereof from any court or office.

(2) The commission shall have the powers to require any person, subject to any privilege which may be claimed by that person under any law for the time being in force, to furnish information on such point or matters as, in the opinion of the commission, may be useful for, or relevant to, the subject matter of the inquiry.

(3) Any officer not below the rank of a gazetted officer, especially authorised in this behalf by the president of the commission may enter any building or place where the commission has reason to believe that any books of account or other documents relating to the subject matter of the inquiry may be found, and may seize any such books of account or documents or take extracts or copies there from subject to the provisions of section 102 and section 103 of the Code of Criminal Procedure, 1898, insofar as they may be applicable.

(4) Any proceeding before the commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Pakistan Penal Code, 1860.

According to notification, the commission shall be assisted by all the authorities concerned of the federal and provincial governments.

It further said that the commission shall start the inquiry at a place and on a date to be fixed by it and shall submit its report to the federal government in accordance with its Terms of Reference.

Moreover, the Cabinet Division shall provide secretarial assistance to the commission, says the notification.

As Prime Minister Mian Nawaz Sharif announced in his address to the nation on Friday evening for writing a letter to the Chief Justice of Pakistan to constitute a commission of inquiry for probing the Panama Paper’s issue, it will be up to the Chief Justice of Pakistan final decision either to accept or reject the government’s request for constituting the said commission. In case, the chief justice agrees to constitute the said commission, the chief justice will choose the names of judges of the apex court for the said commission.

Meanwhile, the federal government has written to the Supreme Court, asking the honourable Chief Justice of Pakistan (CJP) to lead the investigative commission on Panama Leaks issue.

In a letter to the registrar of the apex court in accordance with the 1956 Act of the Constitution, the acting federal secretary of Law and Justice has detailed the terms of reference (ToRs) of the commission. The registrar of the court has confirmed about the receipt of the letter.

The letter says, “It has been reported in the national media, on the basis of information published in the foreign press and broadcast on electronic media, that certain documents from a law firm in Panama (Panama Papers) and other sources indicate involvement of Pakistani citizens, persons of Pakistan origin and legal entities in off-shore companies.” The letter says that reports have also appeared in the national media regarding involvement of holders of public office in writing-off bank loans through political influence and transfer from Pakistan of funds which have originated from corruption, commissions or kickbacks. The federal secretary has written that the federal government deems it expedient in the public interest to appoint a commission of inquiry to probe the aforesaid matters. “In exercise of the powers conferred by sub-section (1) of section 3 of the Pakistan Commission of Inquiry Act, 1956 (VI of 1956) (the Act) the federal government is pleased to appoint a commission of inquiry comprising the following: (i) xxxx (ii) xxxx (iii) xxxx, the letter stated.

While dilating upon the TORs, it said that the commission of inquiry shall have the following terms of reference: (1) to examine information relating to: (a) involvement of Pakistani citizens, persons of Pakistan origin and legal entities in offshore companies in Panama or in any other country; and, (b) involvement of former and present holders of public office in:- (i) writing off their own bank loans or those of their immediate family members through political influence; and, (ii) transfer from Pakistan of funds which have originated from corruption, commissions or kickbacks; (2) to determine whether, in any case referred to in (1) (a) and (b) above, any law for the time being in force in Pakistan has been infringed; (3) in case the answer to (2) above is affirmative, to determine responsibility for such infringement; and, (4) to make such recommendations as may be deemed appropriate. 3. The commission shall, in addition to the powers under section 4 of the Act, have all the additional powers under section 5 ibid, including the powers mentioned in sub-paragraphs (1) to (4) below: (1) The commission shall have powers under the Code of Civil Procedure, 1908 for: (a) summoning and enforcing the attendance of any person, including a tax expert or accountant, and examining him on oath; (b) requiring the discovery and production of any documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses on documents; and, (e) requisitioning any public record or copy thereof from any court or office. (2) The commission shall have the powers to require any person, subject to any privilege which may be claimed by that person under any law for the time being in force, to furnish information on such point or matters as, in the opinion of the commission, may be useful for, or relevant to, the subject matter of the inquiry. (3) Any officer not below the rank of a gazetted officer, specially authorised in this behalf by the president of the commission may enter any building or place where the commission has reason to believe that any books of account or other documents relating to the subject matter of the inquiry may be found, and may seize any such books of account or documents or take extracts or copies the reform subject to the provisions of section 102 and section 103 of the Code of Criminal Procedure, 1898, insofar as they may be applicable. (4) Any proceeding before the commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Pakistan Penal Code, 1860. 4. The commission shall be assisted by all the concerned authorities of the federal and provincial governments. 5. The commission shall start the inquiry at a place and on a date to be fixed by it and shall submit its report to the federal government in accordance with its terms of reference. 6. The Cabinet Division shall provide secretarial assistance to the commission, the letter concluded.