End depends on the accord

ISLAMABAD: The agreement that the National Accountability Bureau (NAB) signed with Broadsheet in 2000 suited more to the foreign investigation company than the Bureau.

Extraordinary concessions were granted to the assets recovery firm whereas ensuring secrecy of the agreement was also made part of the agreement, the copy of which is now exclusively available with The News. The agreement was signed by Lt-Gen Amjad, the then Chairman NAB and Broadsheet representative Dr WF Pepper. Reading through Assets Recovery Agreement (ARA) gives an impression as if it was drafted by Broadsheet and the Chairman NAB‘s role was only to sign it.

The most glaring blunder was acceding to the term that the assets recovery firm will get 20pc commission from the amount recovered, no matter whether Broadsheet has any role or not in the recovery. Clause 4 of the agreement deals with it. “NAB and Broadsheet agree that any assets recovered as a result of the efforts of Broadsheet or as a result of a settlement between NAB and any person or entity registered....shall be jointly shared.”

That was explained for the sake of clarity: “For the removal of any doubt, the share of the assets recovered as set out in this clause “4” shall also apply to any settlement reached by NAB and any registered person or entity with or without the involvement of Broadsheet.” Other than 20pc compensation, the firm was also hoping to get a bonus. “Broadsheet shall receive twenty per cent of the amount available to be transferred plus bonus, as may be allowed by the Chairman NAB.” Insiders say these terms and conditions on compensation were one of the most contentious issues during internal debates of NAB. Efforts to amend it didn’t yield results.

This arrangement was to remain in place even after the notice of termination by NAB. “No Notice of Termination shall be applied to persons or entities registered by Broadsheet in accordance with the terms herein, in respect of which Broadsheet shall be allowed to continue in efforts to recover assets and no termination shall be effected in respect thereof and in respect of such registered persons or entities the provision of this Agreement shall be deemed to continue to apply and be operative,” its clause 18.5 reads.

This was further endorsed when read together with the verdict of the arbitration judge, who admitted Broadsheet’s claim of 20pc on even potential recoveries from the targets registered under this agreement.

Confidentiality of agreement was also part of the agreement as mentioned in clause 14. “NAB and Broadsheet agree that they will not divulge or communicate information or details about this agreement or any consequential operations to any person (except to their professional advisers and/or concerned authorities or the courts if legally required to do so), and they also shall use their best efforts to prevent their employees from doing so.” Probably, it was due to this clause or to avoid an unwanted debate that this agreement is being treated as a classified document.

Regarding the place for parking the recovered amount, both sides had agreed that an “Escrow Account shall be opened with a mutually agreed bank branch that shall be jointly controlled by NAB and Broadsheet and it is agreed that all assets proceeds thereof and funds recovered by Broadsheet shall be deposited in the Escrow Account and at no other place,” according to clause 5.2. Whether any account was created in line with this agreement couldn’t be ascertained.

The NAB was under obligation through this agreement to deliver such information as may be available with it in respect of the registered persons and entities.

“Such information to be provided would be subject to Chairman NAB’s discretion,” was probably the only discretion accountability Czar enjoyed and it was rather abused with the passage of time when political anti-corruption instruments were used for political settlements. Broadsheet was handed a Power of Attorney to take all necessary actions in order to seize and recover and where relevant, negotiate the turnover of financial and non-financial assets of any kind whatsoever beneficially owned, controlled, or transferred by the registered targets. One such Power of Attorney executed on August 9, 2000 for the purpose of negotiating with respect to Mian Nawaz Sharif’s assets is available with The News.

Broadsheet was under obligation to keep Chairman NAB regularly informed about the progress of the search for assets and the status of the legal proceedings.

“In this respect, Broadsheet agrees that it shall promptly respond to queries from the Chairman NAB and to provide full and complete information as may be required from time to time; provided that such information will be transmitted by secure means, and both parties shall maintain strict confidentiality. If during the course of investigation Broadsheet or NAB is approached by any registered person and/or entities or by any other person on his behalf, such contact will be immediately communicated to NAB or Broadsheet as the case may be.” Read clause 3.5.

There was a clause 10 dealing with the exclusivity: “NAB and Broadsheet agree that this Agreement constitutes their sole and exclusive Agreement in respect of the matters included herein and appended thereto from time to time and that it supersedes all, if any, previous Agreement or understandings, oral or written, between the parties.”

The agreement was signed by Lt-Gen (retd) Amjad, the then Chairman NAB, and Broadsheet was represented by one Dr. W. F. Pepper. Farouk Adam Khan, the then prosecutor general of NAB, and Tariq Fawad Malik, the then representative of Broadsheet in Pakistan signed it as witnesses.