NAB issues notices to IK’s entire ex-cabinet in scam of Rs50bn returned by UK

ISLAMABAD: The NAB has started issuing notices to Imran Khan and all cabinet members of his former government in the case of scandalous handling of Bahria Town’s Rs50 billion, transferred from the UK, during the PTI government.

Sources said that the NAB Rawalpindi is issuing these notices to the entire PTI cabinet as part of its inquiry into alleged misuse of authority, financial gains and criminal breach of trust in recovery of crime proceeds received from the UK and illegal sealing of its record. Sources said the main accused in this dubious funds transfer are former Prime Minister Imran Khan and his accountability aide Barrister Shahzad Akbar. Notice has also been issued to Ali Riaz Malik of Bahria Town to explain his company’s stance in this case. It is also said that mutual legal assistance is also being raised through foreign office to get UK home department’s assistance to probe the case.

According to a copy of the notice issued to former defence minister Pervez Khattak, “The inquiry into the allegations of misuse of authority, financial gains and criminal breach of trust has revealed that you being Cabinet Member have attended Cabinet Meeting dated 3rd December, 2019 held at the Prime Minister’s Office, wherein a decision was made on Item No. 2 titled ‘Account Freezing Orders (ARQs)and Repatriation of Funds to Pakistan in Mr. Ahmed Ali Riaz & family and Messrs Bahria Town (Pvt) Ltd’ presented and briefed by Special Assistant to the Prime Minister on Accountability and Interior and also directed the Cabinet Secretary to seal the record, therefore, you are in possession of information/evidence whatsoever, which relates to the commission of the said offence(s).”

The notice reads, “In view, thereof, you are called upon to appear on 12-10-2011 at 02:00 pm at NAB (Rwp), Civic Centre, G-6 Melody, Islamabad, before the CIT, along with documentary evidence, to record your statement.”

The notice tells Khattak, “You are advised that failing to comply with this notice, may entail penal consequences as provided in S.2 of the schedule of NAO, 1999”. Within a few months of coming into power, the present government had alleged that National Crime Agency of United Kingdom had transferred over Rs50 billion of Bahria Town to the government of Pakistan, which were deposited in an SC Account on behalf of Bahria Town, instead of the public kitty, during Imran Khan’s tenure.

In a cabinet meeting on December 3, 2019, a sealed “Note” was presented before the cabinet by the Asset Recovery Unit of the Prime Minister’s Office. The cabinet had approved the note without sharing it with cabinet members and directed to keep the “Note” secret.

Official minutes of the cabinet meeting while conveying cabinet’s approval to the had said, “In order to maintain secrecy, the Cabinet directed Cabinet Secretary to see the Note and authorized him to de-seal it if required to be presented before any court of law”.

The Note pertains to the “Accounts Freezing Orders (AFOs) and Repatriation of Funds to Pakistan in Mr. Ahmed Ali Riaz & Family and Messers. Bahria Town (Private) Limited.” According to the meeting minutes, “Special Assistant to the Prime Minister on Accountability and Interior brief the Cabinet, in camera, on Accounts Freezing Orders (AFOs) and Repatriation of Funds to Pakistan in Mr. Ahmed Ali Riaz & Family and Messers, due to discourse/confidentiality clause.”

“The cabinet considered the Note title ‘Accounts Freezing Orders (AFOs) and Repatriation of Funds to Pakistan in Mr. Ahmed Ali Riaz & Family and Messers. Bahria Town (Private) Limited’ dated 2nd December, 2019 submitted by Assets Recovery Unit, Prime Minister’s Office, and approved Para 10 thereof;”

“In order to maintain secrecy, the Cabinet directed the Cabinet Secretary to see the Note and authorized him to de-seal it if required to be presented before any court of law.” The “Note” as was presented before the cabinet, in camera, was neither shared with the cabinet ministers before the cabinet meeting nor was included in the regular agenda of the cabinet. It came up for discussion as an additional agenda.

The ministers were also sketchily briefed on the subject and were not shared the details, arguing that the government can’t share the details owing to its understanding with the National Crime Agency of the British government. However, as per the cabinet decision if the matter was brought up before the judiciary the “Note” could be unsealed and shared with the court if so directed by the judiciary.

According to a press release issued by the IK government, the United Kingdom’s National Crime Agency had agreed an out of court settlement in a pending investigation with a Pakistani family that owns large property developments in Pakistan and elsewhere. The NCA also agreed for immediate repatriation of funds to the State of Pakistan.

According to the press release, the settlement is a civil matter and does not represent a finding of guilt. The settlement, it had added, is the result of an investigation by the NCA into Malik Riaz Hussain, a Pakistani national, whose business is one of the biggest private sector employers in Pakistan.

According to media reports, almost Pounds 190m was repatriated to Pakistan but the money landed in the Supreme Court of Pakistan’s Account in National Bank of Pakistan. It had raised the question whether the money was to be transferred to the government’s account or was to be deposited in the SCP Account as Malik Riaz’s payment in an earlier settlement under which Behria Town had agreed to pay Rs460 billion to the SCP.

The present government, however, linked this controversial handling of the UK repatriated money with the post-December 3, 2019 establishment of Al-Qadir trust by Imran Khan, which was donated and transferred 458 Kanals of precious land by Bahria Town.

The PTI and the Bahria Town deny any wrongdoing, while the present government sees it a case of corruption by Imran Khan and his government. According to Bahria Town, All transactions took place in conformity with the British and Pakistani laws.