Hudaibiya reference: Speak about crime, not stories, give proof, says SC

ISLAMABAD: The Supreme Court on Tuesday asked the National Accountability Bureau (NAB) to establish the criminal aspect in the alleged offence of the Sharif family in the Hudaibiya Paper Mills money laundering scam and avoid telling stories of fictitious accounts in the name of certain people.

A three-member bench, headed by Justice Mushir Alam and comprising Justice Qazi Faiz Isa and Justice Mazhar Alam Khan Miankhel, was hearing the NAB appeal against the LHC judgment delivered in 2014, quashing the Hudaibiya Paper Mills reference against the Sharif family.

“The fundamental concept of criminal aspect is the charge,” observed Justice Isa. “The money went here and there, these are all stories sans criminal aspect,” he remarked after NAB’s Deputy Prosecutor Imran-ul-Haq submitted that the accused are holding public offices and have misused their authority, opening fake accounts in certain names. “What is the criminal charge? Tell us the criminality as we are not dealing with civil but criminal aspect in this case,” Justice Isa remarked adding the matter in hand is prima facie related to income tax and not of criminal nature.

Justice Isa observed: “It may be related to converting black money into white but NAB will have to establish the criminality in this case.” The court asked the deputy prosecutor to furnish details of evidence that could establish that the accused had committed an offence in the Hudaibiya Paper Mills money laundering scam.

The bench also directed the anti-graft body to submit sufficient incriminating evidence against the accused people (Sharifs) and provide details pertaining to the money trail, which may be helpful in determining that the accused transferred the alleged ill-gotten money to the suspects’ accounts from fictitious accounts opened in the name of Qazi family.

Earlier, at the start of the proceedings, Justice Alam directed the deputy prosecutor to satisfy the court about the delay in filing an appeal in the apex court against the LHC judgment and also convince as to why its time-barred appeal should be heard and then notices would be issued to the parties.

Justice Isa observed that as per the law and Constitution, the accused too have rights and hence rights of the accused would also be looked into while reopening the case after a long time. “Tell us as to whether the rights of the state or the accused were affected,” Justice Isa asked the deputy prosecutor. Justice Alam observed that the court will also look into as to who benefited from sending the accused into exile.

NAB’s Deputy Prosecutor Imran informed the court that he would submit additional documents pertaining to the case now, which he could not do so in the earlier proceedings. He read out the recommendations made by the JIT in the Panama Papers case, saying the probe team had recommended reopening of the Hudaibiya Papers reference, with an argument that the Sharif family's money trail is connected to the Hudaibiya Paper Mills case. He submitted that on the orders of the Supreme Court, the JIT examined the cases filed by NAB and FIA against the Sharif family.

Justice Miankhel asked the prosecutor as to whether the court in the Panama Papers case judgment had given any specific observation or issued any order. The prosecutor replied that the persons and evidence shown in the JIT is related to the Hudaibiya Paper Mills.

Justice Alam asked the NAB officer as to whether the accused while holding public offices took any benefit. The prosecutor replied that after the country conducted nuclear weapon tests in 1998, the foreign currency accounts were seized and only ordinary people could withdraw their money while converting foreign currency into Pakistani rupees during that time.

Justice Mushir Alam asked as to who withdrew the money that came to the one Siddiqa Syed in the Hudaibiya account, Ishaq Dar or others. The NAB deputy prosecutor replied that at least Siddiqa Syed did not as the accounts were fictitious. “This has to be probed by the NAB, which it did not,” Justice Mushir Alam said.

Justice Isa said at least the anti-graft body should have found out the income tax record of those accounts and NAB had to prove it as well. Justice Alam asked the prosecutor if NAB had asked from the Hudaibiya management. The prosecutor replied that a questionnaire was sent to the Hudaibiya management but it had not yet responded.

The court asked if the account holders are illegal and utilized in Hudaibiya Paper Mills, then what would be the criminal offence in it. The deputy prosecutor contended that Dar's confession recorded under Section 164 of the Criminal Procedure Code (CrPC) showed how the money laundering was conducted.

To a court query, the deputy prosecutor said Dar had recorded his confessional statement as an accused, hence it could be as witness against the co-accused as well. Dar was told that he would be pardoned for giving the full picture of the case, he added. At this, Justice Alam asked the prosecutor as to whether the statements were counter-checked. Yes, the prosecutor replied. He further contended that in his confessional statement, Dar said that after becoming the prime minister, Nawaz Sharif contacted him and asked him to open accounts in the names of certain people and then laundered the money abroad. Justice Alam asked the prosecutor as to whether the anti-graft body has got the record of all the bank transactions.

Justice Isa observed that the said record was also available in 2000 and asked the prosecutor as to what benefits went to Dar in response of the said process. The deputy prosecutor NAB replied that he became the finance minister. Later, the court adjourned further hearing of the case till today (Wednesday).

On the other hand, NAB has appointed Justice (retd) Shah Khawar as its special prosecutor, said a press release. Khawar is a former judge of the LHC and a senior Supreme Court lawyer. He has also served as the deputy attorney general and assistant advocate general. The special prosecutor will represent NAB in all important cases, including the Hudaibiya Paper Mills reference.