Investment made in accordance with existing Pak laws: Haroon Akhtar

NAB official says details sought from 25 companies/individuals but no one cooperated despite repeated requests

ISLAMABAD: An investigation into alleged top financial scam against a well-known politician was halted after the assigned investigators informed the National Accountability Bureau (NAB) that “there lacks substantive evidences for the efficacy of these charges.”

Major development happened earlier this month when a special team of NAB reviewed its listed 179 mega corruption cases following the apex court’s directions to catch big fish, informed officials said.

Chairman NAB authorised an inquiry against Haroon Akhtar Khan, special assistant to Prime Minister for Revenue, his wife Saba Haroon Khan and his brother Ghazi Akhtar Khan last year, overseeing a confidential document prepared by the State Bank of Pakistan (SBP) on April 30, 2011. This confidential document is also available with The News and Geo News. The Financial Monitoring Unit (FMU) of SBP under a Suspicious Transaction Report (STR) under provisions of the Anti Money Laundering (AML) Act, 2010 forwarded complaint against Haroon Akhtar Khan.

“We sought details from 25 companies/individuals who sent remittances worth US$6.922 million to them [Haroon Akhtar, Saba Haroon and Ghazi Akhtar] from Dubai, London, Birmingham and Bradford—but no one cooperated with us despite repeated requests,” revealed an investigator, who did not want to be named. “File is now with Chairman NAB Qamar Zaman. He will decide either to drop the inquiry or to hold it up. But there seems the matter is almost over now,” he explained.

Investigators in Lahore, with assistance of prosecutors, sought transaction details of Haroon Akhtar’s two US$ accounts (A/c Nos: (1110335/0111254) which showed he (Haroon) received US$3, 050, 532 from various UK and Dubai based companies—UK Money Exchange, Bradford, Overseas Express Limited, Birmingham, Rashid Exchange Limited, Birmingham, Crossbarfx Limited, UK, Alfa Exchange, United Arab Emirates, Reems Exchange Dubai, Intercity Money Changers Limited, Bradford and ALICO (UK) Limited, London on 8th May in 2007 and then on 8th March in 2007, another investigator revealed. But we did not receive any positive response from them, he added.

NAB Lahore’s team sought evidences from three companies—Al-Zarooni Exchange Dubai, Goraya Trading Company LLC, Dubai and Gabana General Trading LLC, Dubai—but still waiting for their response despite several reminders, investigator continued to reveal. Investigators also received no response from 12 individuals—Mohammd Yasin Ansari, Muhammad Waris Khan, Sodagar Mohammed, Abdul Nawab, Khial Nawaz, Ghazanfar Ashraf, Imran Butt Tariq, Muhammad Suleman, Muhammad Faisal, Muhammad Ayub, Abdul Nassir, Muhammad Jawad and Mohammad El Sayed Ali Borham who were request for recording their statements about suspicious transactions in Dubai. Ghazi Akhtar Khan also received US$3, 295, 170 in his two accounts (A/c Nos: 1110342/01113865) maintained in UBL Liberty Market Branch Lahore on 26th and 27th April in 2007 and Saba Haroon received US$577, 034 in her two accounts (A/c Nos: 01118736/1110363 maintained in UBL Liberty Market Branch Lahore on 24th and 25th October in 2007, reads a strictly confidential letter written by FMU of SBP to the office NAB Chairman in Islamabad.

“All the foreign remittances were being received from different individuals with or without any business consideration, in the personal accounts of Mr. Ghazi, Mr. Haroon and Ms Saba, the claim of account holders that the proceeds were meant for business investments, appeared skeptical. The skepticism gets stronger when we note that a good number of remittances were sent in by Exchange Companies as being the remitter. Needless to mention that such practice of hiding the particulars of original remitter from the payment chain is mostly meant to camouflage the actual remitter,” it revealed.

But in response to it Haroon Akhtar told Geo News: “All in all it’s so unfortunate that NAB doesn't close cases of politicians and your opposition time and again gets a chance to use such frivolous things to defame your family.” But the confidential SBP report says that all the three account holders hold national tax numbers as salaried individuals. “Risk screening databases do not indicate any adverse history of these account holders. However, Mr. Haroon and Mr. Ghazi, being directors of M/s Tandlianwala Sugar Mills Limited, are using their personal accounts for routing of significant amount of business related foreign remittances to the account of M/s. Tandliawala Sugar Mills Limited. “Given the premise forwarded by the account holders that the foreign remittances were intended for business investments, however, the company’s cash flow statements do not support their argument and it appears that the transactions were structured to give legitimacy to the foreign remittances. Therefore we may not discount the possibility that the funds received in the form of foreign remittances were actually the illegitimate proceeds sent out of country through some illegal means by the beneficiaries themselves, only to get them back in the shape of so-called legitimised foreign investment. Foregoing in the financial intelligence is being shared with your agency under section 6 (4) (c) of AML Act 2010 for action, considered appropriate in the matter.”

The FMU of SBP, however, further wrote to the NAB that “we [SBP] would like to draw your [NAB] kind attention towards section 34 (3) of Anti Money Laundering Act 2010 whereby FMU, investigation agency or officer as the case may be are required to keep the information confidential as far as on STR possible. Even otherwise the international standards and best international practices require strict confidentiality in respect of reported STR. It would be prudent to avoid any reference of STR, its originating entity or FMU during legal proceedings. 

But in response to it Haroon Akhtar said, “NAB always defamed politicians. It is unfortunate. The matter is over now. My position is clear now as NAB could not find something against the law in the said case. NAB wrote me many times and I explained to them that I brought investments under The Protection of Economic Reforms Act, 1992. Around US$6.9 million were invested in the company in accordance with all existing laws of Pakistan. These transactions were verified, audited and approved by the FBR. There is no question of these transactions, which were made in a public listed company, to be suspicious as the banks know our Group and regard us as one of the best and most upright in the country.”

Director General NAB Punjab Major (R) Syed Burhan Ali says, “Yes we missed the deadline twice given to us for concluding investigation into this case. There are serious difficulties in obtaining solid actionable evidences [against Haroon Akhtar and Family]—but it does not mean investigation was being stalled.” Investigation is underway and will be continued till we get some solid proof, he added. The last deadline to conclude investigation into this case was June 30, 2016.