SC disqualifies PM for hiding Dubai salary

ISLAMABAD: The Supreme Court (SC) on Friday disqualified Nawaz Sharif as Member National Assembly and the prime minister for concealing the salary he was supposed to draw as chairman of his son’s Dubai-based company, Capital FZE.

The five-member SC bench gave a consensus verdict, disqualifying Nawaz Sharif for not being honest under Article 62 (1)(f) of the Constitution and the Representation of the People Act, 1976 (ROPA), and ordered the National Accountability Bureau (NAB) to file references against him and members of his family.

Nawaz failed to complete his third term as the premier and he was disqualified for lifetime for submitting a false statement in his nomination papers about his assets abroad.In 1993, he was sacked by the-then president over graft allegations, while in 1999, he was ousted in a military coup.

The SC bench directed NAB to file references against Nawaz Sharif, Maryam Nawaz, Hassan Nawaz, Hussain Nawaz, Capt (retd) Muhammad Safdar and Ishaq Dar in six weeks, and ordered the court to decide the case in six months. The court said in its verdict that a single bench would supervise the investigation process.

The court also asked the president to ensure continuation of the democratic process in the country. Soon after the announcement of the verdict, the cabinet was dissolved.

According to Article 62 (1)(f) of the Constitution, “A person shall not be qualified to be elected or chosen as a member of the Parliament unless, he is sagacious, non-profligate, honest and ameen, there being no declaration to the contrary by a court of law”.

The qualification of honesty and “amanat” basically relates to the preamble of the Constitution, which says that elected representative shall be trustee and the authority by the people of Pakistan shall be a sacred trust, said Muhammad Ikram Chaudhry, a senior lawyer of the Supreme Court.

In this perspective, he said the public office-holder under Article 62 (1)(f) does not possess or lacks honesty and amanat, is liable to be disqualified, said the five-member larger bench of the apex court in the Panama case.

“The disqualification of Nawaz Sharif is lifelong as per my understanding of law and the Constitution,” Ikram Chaudhry said.The SC disqualified Nawaz Sharif over his failure to disclose his un-withdrawn salary as chairman of UAE-based offshore company Capital FZE.

A five-member larger bench of the apex court, headed by Justice Asif Saeed Khan Khosa, and comprising Justice Ejaz Afzal Khan, Justice Gulzar Ahmed, Justice Sheikh Azmat Saeed and Justice Ijazul Ahsan announced the verdict in the petitions, filed by Tehreek-e-Insaf (PTI) Chairman Imran Khan, Sheikh Rasheed Ahmed of Awami Muslim League and Sirajul Haq, Ameer Jamaat-e-Islami, seeking disqualification of Nawaz Sharif for telling a lie on the floor of parliament.

The court directed the National Accountability Bureau (NAB) to file references against Nawaz Sharif, Maryam Nawaz, Hussain Nawaz, Hassan Nawaz and Captain (retd) Muhammad Safdar relating to the Avenfield properties (Flats No 16, 16-A, 17 and 17-A Avenfield House, Park Lane, London, United Kingdom).

The court asked the anti-graft body to file the references within six weeks and decide in six months from the date of filing of the references; and in case the accountability court finds any deed, document or affidavit filed by or on behalf of the respondent(s) or any other person(s) to be fake, false, forged or fabricated, it shall take appropriate action against the person concerned in accordance with the law.

The majority judgment, authored by Justice Ejaz AfzalKhan, declared that having failed to disclose his un-withdrawn receivables constituting assets from Capital FZE, Jebel Ali, UAE, in his nomination papers filed for the general elections held in 2013 in terms of Section 12(2)(f) of the ROPA, and having furnished a false declaration under solemn affirmation, Respondent No. 1 (Nawaz Sharif) is not honest in terms of Section 99(f) of ROPA and Article 62(1)(f) of the Constitution of the Islamic Republic of Pakistan, 1973. Therefore, he is disqualified to be a Member of the Majlis-e-Shura (Parliament),” the court announced in its short order.

The court directed the Election Commission of Pakistan to issue a notification disqualifying Nawaz Sharif as Member of the Majlis-e-Shura (Parliament) with immediate effect, whereafter he shall cease to be the prime minister of Pakistan.

“The president is required to take all necessary steps under the Constitution to ensure continuation of the democratic process,” the short order ruled.

The court ruled that it has not been denied that respondent No 1 (Nawaz Sharif) being chairman of the Board of Capital FZE was entitled to salary, therefore, the statement that he did not withdraw the salary would not prevent the un-withdrawn salary from being receivable, hence an asset. When the un-withdrawn salary as being receivable is an asset, it was required to be disclosed by respondent No 1 in his nomination papers for the Elections of 2013 in terms of Section 12(2)(f) of the ROPA.

“Where respondent No 1 did not disclose his aforesaid assets, it would amount to furnishing a false declaration on solemn affirmation in violation of the relevant law, therefore, he is not honest in terms of Section 99(1)(f) of the ROPA and Article 62(1)(f) of the Constitution of the Islamic Republic of Pakistan,” adds the short order.

The court ruled that during the course of hearing, when the learned counsel for Nawaz Sharif confronted, whether the said respondent has ever acquired work permit (Iqama) in Dubai, remained chairman of the Board of Capital FZE and was entitled to salary as such, his reply was in the affirmative with the only addition that Respondent No 1 (Nawaz Sharif) never withdrew any salary.

This admission, the court ruled, was reiterated in more categorical terms in the written arguments filed by the learned Sr ASC for Respondent No. 1 in the words as under:-

“So far as the designation of Respondent No. 1 as Chairman of the Board is concerned, this was only a ceremonial office acquired in 2007 when the Respondent No. 1 was in exile, and had nothing to do with the running of the Company or supervising its affairs. Similarly, the Respondent No. 1 did not withdraw the salary of AED 10,000. Thus, the salary shown in the Employment Contract in effect never constituted an “asset” for the Respondent No. 1.

A careful examination of the material so far collected reveals that a prima facie triable case under Section 9, 10 and 15 of the Ordinance is made out against respondents No 1 (Nawaz Sharif) 6 (Maryam Nawaz), 7 (Hussain Nawaz) and 8 vis-à-vis the assets, says the short order.

These included Flagship Investments Limited. Hartstone Properties Limited; Que Holdings Limited; Quint Eaton Place 2 Limited; Quint Saloane Limited (formerly Quint Eaton Place Limited). Quaint Limited; Flagship Securities Limited; Quint Gloucester Place Limited; Quint Paddington Limited (formerly Rivates Estates Limited); Flagship Developments Limited; Alanna Services Limited (BVI); Lankin SA (BVI); Chadron Inc; Ansbacher Inc; Coomber Inc; and Capital FZE (Dubai).”?

The court ruled that the National Accountability Bureau (NAB) shall within six weeks from the date of this judgment prepare and file before the Accountability Court, Rawalpindi/Islamabad, the following References, on the basis of the material collected and referred to by the Joint Investigating Team (JIT) in its report and such other material as may be available with the Federal Investigation Agency (FIA) and NAB having any nexus with assets mentioned below or which may subsequently become available including material that may come before it pursuant to the Mutual Legal Assistance requests sent by the JIT to different jurisdictions:-

Reference against Nawaz Sharif, Maryam Nawaz, Hussain Nawaz, Hassan Nawaz and Capt. (Retd). Muhammad Safdar relating to the Avenfield properties (Flats No. 16, 16-A, 17 and 17-A Avenfield House, Park Lane, London, United Kingdom).

The court ordered the anti-graft body to file reference against Respondents No. 1, (Nawaz Sharif), 7 (Hussain Nawaz) and 8 (Hassan Nawaz) regarding Azizia Steel Company and Hill Metal Establishment and Reference against respondents No. 1, Nawaz Sharif, 7 Hussain Nawaz and 8 Hassan Nawaz regarding the companies mentioned in the judgment unanimously rendered by Justice Ejaz Afzal Khan, Justice Sheikh Azmat Saeed and Justice Ijazul Ahsan.

The court also ordered filing of reference against Ishaq Dar, Respondent No 10, for possessing assets and funds beyond his known sources of income.

The court directed that NAB shall also include in the proceedings all other persons including Sheikh Saeed, Musa Ghani, Kashif Masood Qazi, Javaid Kiyani and Saeed Ahmed, who have any direct or indirect nexus or connection with the actions of Nawaz Sharif, Maryam Nawaz, Hussain Nawaz, Hassan Nawaz and Ishaq Dar, leading to acquisition of assets and funds beyond their known sources of income.

The court further directed that the anti-graft body may file supplementary reference(s) if and when any other asset, which is not prima facie reasonably accounted for, is discovered.

The court requested the Chief Justice of Pakistan to nominate a judge of the apex court to supervise and monitor implementation of this judgment in letter and spirit and oversee the proceedings conducted by NAB and the Accountability Court in the above matters.

Similarly, the court commended and appreciated the hard work and efforts made by members of the JIT and their support and ancillary staff in preparing and filing a comprehensive and detailed report as per its orders.

Their tenure of service shall be safeguarded and protected and no adverse action of any nature including transfer and posting shall be taken against them without informing the monitoring judge of this court nominated by the Chief Justice of Pakistan, the short order ruled.

The court also appreciated the valuable assistance provided to it by Naeem Bokhari, ASC; Khawaja Harris Ahmed, Sr. ASC; Salman Akram Raja, ASC; Dr Tariq Hassan, ASC; Taufiq Asif, ASC; Sheikh Rashid Ahmed, petitioner in person, Ashtar Ausaf Ali, Attorney-General for Pakistan; Waqar Rana; Additional Attorney-General for Pakistan and Akbar Tarar, Acting Prosecutor-General, NAB and their respective teams.

Meanwhile, the court disposed of petitions.

A three-member special implementation bench on Panama verdict, headed by Justice Ejaz Afzal Khan, and comprising Justice Sheikh Azmat Saeed and Justice Ijazul Ahsen on July 21 had reserved the judgment with the ruling for looking into the matter of disqualification of Prime Minister Nawaz Sharif while announcing its judgment on Panama leaks case, saying fundamental rights of both the petitioners and respondents would be fully protected.

Similarly, the five-member bench of the apex court, headed by Justice Asif Saeed Khan Khosa, had announced its judgment on April 20.

In a 3-2 split decision, the majority judges determined that the available evidence was insufficient to disqualify the prime minister outright and directed for formation of a JIT to investigate the case and collect evidence, if any, showing that "Prime Minister Nawaz Sharif or any of his dependents or benamidar owns, possesses or acquired assets or any interest therein disproportionate to their known means of income.

Two judges including Justice Asif Saeed Khan Khosa and Justice Gulzar Ahmed had recommended disqualification of Prime Minister Nawaz Sharif.

The court had directed Prime Minister Nawaz Sharif, his sons, Hussain Nawaz and Hassan Nawaz, respondents No. 1, 7 and 8 to appear and associate themselves with the JIT as and when required.

Later on, a six-member Joint Investigation Team (JIT) was formed  by the implementation bench on Panama verdict included Federal Investigation Agency’s Additional Director General Wajid Zia, Military Intelligence’s Brig Kamran Khurshid, National Accountability Bureau’s (NAB) Director Irfan Naeem Mangi, State Bank of Pakistan’s Amer Aziz, Securities and Exchange Commission of Pakistan’s (SECP) Executive Director Bilal Rasool and Inter-Services Intelligence’s Brig Muhammad Nauman Saeed.

The JIT members during the seven-week period interrogated eight members of Sharif family including Prime Minister Nawaz Sharif, his younger brother Shahbaz Sharif, sons Hassan and Hussain Nawaz, daughter Maryam Nawaz, son-in-law Captain (retd) Safdar, cousin Ijaz Shafi, Finance Minister Ishaq Dar, Chairman NAB etc and submitted its report on July 10.

In its report, the JIT on July 10 found that the family was living beyond means. It accused Sharifs of concealment of facts and being beneficial owners of multiple offshore companies and recommended initiation of reference against the PM and members of the ruling family in the National Accountability Bureau.

The report highlighted the failure of the Sharif family to provide a money trail for its London apartments and claimed the prime minister and his children own assets beyond their known sources of income.

Agencies add: After the decision, Nawaz Sharif immediately stepped down, the PML-N spokesperson stated in a press release.