SHC orders Axact CEO to appear in money-laundering case

KARACHI: The Sindh High Court (SHC) on Thursday expressed its annoyance over the absence of Axact CEO Shoaib Sheikh and ordered him and other co-accused to appear before court on February 21 in FIA's appeal against their acquittal in a money laundering case.

The FIA counsel Riaz Ahmed submitted that senior counsel Hamid Ali Shah has been appointed as special prosecutor who will appear on behalf of the FIA to argue on the appeals and sought adjournment as the latter was engaged in the Supreme Court. The counsel for CEO Axact Shoaib Sheikh and money changers Anwar Mansoor Khan and Hassan Sabir filed power on behalf of their clients.

The counsel for Axact CEO submitted that his client was unwell and sought exemption for his appearance. He also questioned the appointment of private counsel as FIA’s public prosecutor submitting that the appointment was illegal as the Supreme Court had held that the federal and provincial governments could not engage a private counsel.

The SHC’s division bench headed by Naimatullah Phulpoto adjourned the hearing till February 21 and issued notice to additional attorney general to reply to the respondent's application. The court also directed Axact CEO and other respondents to appear before the court on the next date of hearing and made it clear that the appeal shall be proceeded on the next date of hearing without fail.

Aggrieved with the acquittal of Axact CEO and director M/s Chanda exchange Mohammad Younus and branch manager Mohammad Junaid in a money laundering case, FIA appealed against the acquittal of the accused without framing of charge and recording of the prosecution evidence. The FIA pleaded to set aside the acquittal.

According to the FIA, accused Shoaib Sheikh opened an account in a bank in the name of his mother and while using mandate in his own name, issued 116 cheques through his own signatures in favour of vendors of a Dubai based company allegedly owned by the accused.

The cheques were delivered by the Axact employees to the co-accused directors and branch manager of M/s Chanda Exchange though there were no business deal between the two. The FIA submitted that the trial court failed to appreciate the evidence which was not denied by the accused connecting the accused with the illegal money transfer which is punishable under foreign exchange regulation Act. The FIA submitted that Axact transferred over Rs.170 million to Dubai based vendors through M/s Chanda exchange.