Hill Metals Establishment: NAB probe claims Nawaz received 98.01pc income as gifts-II

ISLAMABAD: The report says that from an analysis of the net profits of HME conducted by JIT, based on a document (i.e. “Auditor’s Certificate dated 19-01-2017) submitted on behalf of Hussein Nawaz Sharif (through CMA 432/17 in GP No29/16 Pages 133-134) in the Supreme Court, it already stands proved from the given figures of the net profits of HME during the period 2010 to 2014 that almost 88 percent of the claimed total net profit made by said entity was transferred to the accused.

Profitability position of HME during 2010-2015 was $9,977,882. Total gift given to MNS in 6 years 2010-2015 was $8,913.307. Percentage of gifts of net profit was 88 percent.

Analysis of Expert Finance & Accounts NAB (Rwp) on additional remittances reveals that the amounts transferred by HME during the period from 2010 to 2014 goes to 98.01 percent of the given figures of the net profits of HME leaving only 1.98 percent for the purported sole owner i.e. Hussain Nawaz.

(1) Funds transferred to MNS $87,60,128 equivalent to 88 percent from HME/Hussain Nawaz as per JIT report.

(2) Balance Funds With HME $12,17,754 equivalent to 12 percent.

(3) Funds transferred to other accounts during 2010-15:

Purported Net Profit of HME = $99,77,882. Total transferred to MNS = $ 87,60,128 equivalent to 88 percent of net profit. Balance net profit $12,17,754. Total transferred to Others $9,99,265 equivalent to 10.01 percent of net profit. Total transferred out of purported net profits of HME = 98.01 percent.”

It is worth mentioning here that net profits of any organisation are computed after charging to the profit and loss account. A certificate issued by a member firm of Grant Thornton International, a globally leading firm of chartered accountants and the fifth largest worldwide, Saudi Arabia confirms that the “net profits” of Hill Metals between 2010-15 were Saudi Riyals 37.427 million, equivalent to PKR 1.029 billion. Not only this, the closing cash balances ranges from PKR 83.215 million to as much as PKR 879.395 million in 2010. At the end of 2013, the closing cash and bank balances were as much as PKR 677.38 million. The closing cash and bank balances that an enterprise has are after all cash outflows. Figures obtained reveal that the actual remittances made by Hill Metals to Nawaz Sharif between 2010-2015 were PKR 938 million. The actual cash generated by Hill Metals during the said years, according to documents which were also available with the JIT, was PKR 4.831 billion, therefore such remittances constituting only 19.40 percent thus and not 88 percent as alleged by the JIT.

The NAB report further reveals that the amounts remitted to the accused, Nawaz Sharif, were largely transferred by him to his daughter Maryam Nawaz and used to purchase landed property as disclosed in her tax returns. The declared land homing of Maryam Nawaz increased from zero in 2010 to Rs804.424 million in 2016 (1431-K) and investment/shares worth Rs26.00 million as per tax return filed with FBR. The property is a consequential gain/illicit proceed of an asset for which the accused persons failed to reasonably account for.

“During 2013 the remittances started coming directly from HME to accused, Nawaz Sharif. The description/reason given for the transfer of amounts clearly established that Nawaz Sharif has a direct interest/stake and is a direct beneficiary of the HME and Hussain Nawaz is just an ostensible owner. The purpose of remittances given by HME in the telegraphic transfer record are personal use, family expenses, family remittances, personal remittances inwards and personal remittances by foreign employee in the KSA which clearly established that HME and accused Nawaz Sharif have a direct nexus where the company is sending money not as a gift, as previously claimed, but for his personal/family use and reflects that he hold a beneficial interest/stake in the company.

From the examination of record of accounts of different individuals, it has been established that HME remitted voluminous money (Rs273.254 million + USD 52,460) in different accounts in Pakistan which are directly/indirectly related to the accused persons: (1) As per bank’s record, Anjum Iqbal is Admin Manager in HME. (2) As per bank’s record, Mr Anees is an Accountant in HME. (3) As per bank’s record, Abdur Razzaq is a Financial Consultant and also working as CFO of Sharif Trust. (4) As per bank’s record, Muhammad Hanif declared himself in his banking documents as Private Services in Ramazan Sugar Mills Ltd and residing in Sharif Medical City Hospital, Lahore.

The record revealed that there were unusual transactions in the above said accounts being contradictory to the account profile. The review of the inward remittances received in the accounts does not reflect any regular pattern or structured amounts. On the contrary, the remittances were received in tranches with variation in amounts.

The real source of entire money which has been remitted by HME over a period of time is not reasonably accounted for and is disproportionate to the known sources of income of the accused persons. Plea and justifications of the accused persons tendered so far before Supreme Court and JIT and offered through interviews, speech and address is not found satisfactory/plausible, hence the accused persons failed to reasonably account for the acquisition of assets and allegations against them have been established during the course of investigation.”

(Concluded)