Everyone acting like a king: SC

Currency smuggling, money laundering case

Justice Ejaz Afzal asks how government officials can allow money laundering; officials of Customs Collectorate, FBR and State Bank summoned for indictment

ISLAMABAD: Heading a two-member bench of the apex court hearing a case of money laundering and smuggling of foreign currency out of Pakistan, Justice Ejaz Afzal on Thursday remarked that everyone was acting like a king in their areas of responsibility and asked how government officers could allow money laundering.

The court summoned officials of the Customs Collectorate, Federal Bureau of Revenue and State Bank of Pakistan for their indictment for their alleged involvement in a money laundering case and issued them show causes notices. 

Former Chief Justice of Pakistan Justice Nasir-ul-Mulk had taken suo moto notice of a letter written to him from jail in 2011, praying for initiating contempt proceedings against the Customs Collectorate, Federal Bureau of Revenue and State Bank of Pakistan officials.

The jail inmate contended in the letter in Khuda-e-Noor Vs Collectorate of Customs, Rawalpindi case, the apex court in February 2005 banned the transfer of foreign currency out of Pakistan in baggage and asked if anyone found involved would be sentenced to five years of imprisonment.

He had informed the chief justice that a man by the name Allah Pash tried to transfer $0.1 million out of the country through the Islamabad International Airport to China (Ürümqi) but he was arrested by Customs officials in August 2006 and a case was registered against him.

The letter further informed that the Special Judge Customs, Rawalpindi, ordered the seizure of the money and awarded him five-year sentence.

He, however, contended that later the Customs authorities on the direction of former Prime Minister Yousaf Raza Gilani, who remained with Allah Pash in the jail, put pressure on the State Bank of Pakistan to issue a No Objection Certificate (NOC) in this regard.

The jail inmate further informed the chief justice that it was a violation of Foreign Exchange Regulation Act 1947 because the matter was pending with the Special Judge.

The additional collector issued an NOC for the release of foreign currency subject to the trial court’s permission. The trial court did not grant permission but due to the pressure of ex-prime minister Yousaf Raza Gilani, the Federal Board of Revenue changed the additional collector’s order under Section 195 of the Customs Act and thus all the currency was released to the accused.

It was further informed that Aftab Iqbal Siddiqui, who was the Joint Director Exchange Policy Department State Bank of Pakistan, Karachi, issued a letter to the accused that the SBP had no objection if the all foreign currency was returned to him.

The Supreme Court converted the letter into suo moto and the contempt proceedings were initiated against four officers, including Dr Sadiq Ullah, Aftab Iqbal Siddiqui, Syed Qammar and Abdul Razzaq.

Deputy Attorney General Sohail Mehmood informed the court that a departmental disciplinary action had been taken against them.

Justice Ejaz Afzal, however, said that they will issue the show cause and summoned the entire record of the case.Raja Irshad, advocate, representing the accused, contended that his clients had been pressurised by the ex-PM Yousaf Raza Gilani and the court should take action against the principal accused instead of Customs and SBP officials.

The court, however, did not comment on it and ruled they will indict the accused in the next hearing and issued show cause notices to the officials and adjourned the hearing for date-in-office (indefinite period.)