ECP has power to probe foreign funding of political parties: CJ

Says will go to the bottom of PTI’s foreign funding issue; SC told PTI received a total of about some $3,707,112 funding from US from Feb 2010 to June 2017

ISLAMABAD: Chief Justice of Pakistan Justice Mian Saqib Nisar on Tuesday observed that the Election Commission of Pakistan (ECP) had an authority to deal with matters pertaining to foreign funding of political parties and the court would go to the bottom of foreign funding of Pakistan Tehreek-e-Insaf (PTI).

A three-member bench, headed by Chief Justice Mian Saqib Nisar and comprising Justice Umar Ata Bindial and Justice Faisal Arab, resumed hearing in the petitions, filed by PML-N leader Hanif Abbasi seeking disqualification of the PTI chief and Secretary General Jehangir Tareen over alleged tax evasion.

The Election Commission of Pakistan (ECP) on Tuesday disclosed to the Supreme Court that Pakistan Tehreek-e-Insaf (PTI) has not submitted any record related to the party’s funding in the last four years. At the same time, the court was informed that PTI has received a total of about some $3,707,112 funding from the United States from February 2010 to June 2017. The court directed the PTI counsel to inform it about the party’s collection of foreign fund and sources of funding, as well as an audit of its finances.

The petitioner had accused the two PTI leaders of not declaring their assets to the ECP, hence had prayed the apex court to unseat them based on their alleged violations of the Income Tax Ordinance 1979 and the Peoples Act, 1974.

Raja Ibrahim Satti, counsel for ECP, in pursuance of the questions raised by the court on the previous hearing, submitted that the ECP had examined the original declaration of assets filed by the PTI and it was found that the declaration so made from year to year in Form 1 prepared under the Rule 4 Column No 6 of Form-1 pertains to the sources of fund with details, the declaration so submitted does not contain source of foreign fund with detail. "The respondent party, the PTI, deliberately concealed the required information from the ECP with fraudulent intention”, Ibrahim Satti contended.

The bigger issue, according to ECP's counsel, was that the PTI had not mentioned foreign sources, prohibited or allowed, in its affidavit. Articles 62 and 63 could be invoked in such matters, the ECP's counsel observed.

Chief Justice Mian Saqib Nisar inquired whether certain forms of funding were prohibited according to the Political Parties Ordinance Section 6(3), to which the PTI's legal counsel Anwar Mansoor responded that the sources of funds obtained by the PTI were not prohibited.

Justice Umer Ata Bandial, a member of the bench, however, asked the learned counsel as to why the ECP did not ask for the required information nor did the PTI submit it. He said it is the ECP’s job to inquire about funding information from political parties.

Ibrahim Satti replied that one of the founding members of PTI and who claimed to be the chief organiser of PTI Balochistan Akbar Sher Babar had moved to the ECP agitated with the same grievances but the party challenged it through its counsel Anwar Mansoor Khan with the contention that the petition was not maintainable, the ECP had no jurisdiction and it was a past and close transaction.

The learned counsel also submitted a reply in pursuance of the questions asked the apex court on the previous hearing including as to whether the ECP had the jurisdiction to deal matter pertaining to foreign funding.

The learned counsel submitted that the ECP in its order issued on May 8, 2017 held that it has all and plenary jurisdiction and locus standi and to take suo moto on the basis of any information it got regarding foreign funding of a party or on a complaint, filed by any individual with the ECP. Under Section 6 of the ECP order, it has inherent power to use its jurisdiction of taking suo moto on the compliant or any information, Satti told the court.

The chief justice observed that the bench has heard detailed arguments in the case, filed by Pakistan Muslim League-Nawaz (PML-N) leader Hanif Abbasi. He said the bench has some queries it wants addressed, adding that the main issue is related to Article 6 (3) of the Political Parties Order 2002, which covers the jurisdiction of probing parties’ funding. The chief justice asked as to whether the PTI has declared the amounts they have received from foreign funding.

“At the same time we are looking as to which forum will decide to take it under Article 184(3) of the Constitution or Article 6 (4) or under Rule 6 of Political Parties Order 2002”, the CJP observed. He asked Muhammad Akram Sheikh, counsel for Hanif Abbasi, the petitioner to give details of the PTI which were registered abroad and funds received through banking.

After some time, Muhammad Akram Sheikh submitted before the court that the PTI has received a total of about some $3,707,112 funding from United States of America (USA) from February 2010 to June 2017. He informed the court that he has downloaded all the information from the website of Foreign Agents Registration Act (FARA). He said that FARA prescribed the manner of collection of funds, adding that the PTI since February 2010 till June 2017 has received some $ 3,507,112 from USA. The learned counsel claimed that PTI had received funds from 178 multinational corporations from California and foreigners, including Indian citizens.

He however, questioned as to whether the PTI provided the chartered accountants a complete list of donors? He said that in some places, the donor names are missing, and in others, their addresses as well.

Meanwhile, the court directed Anwar Mansoor Khan, counsel for PTI, to inform it about the party’s collection of foreign funds and sources of funding, as well as an audit of its finances. When the chief justice asked Muhammad Akram Sheikh if the instant issue should not be sent to the ECP for further action, Akram Sheikh said let him seek instructions from his client and will inform the court today at which the court adjourned the hearing 11:30am Wednesday.