REFERENCE / COMPLAINT NO. I

Reference dated 13-9-2000 – Financial Irregularities by NDFC Chief

To: The Chairman
National Accountability Bureau
Islamabad.

Pakistan Peoples Party
through

Secretary General
Jehangir Bader -----Complainant

Versus

Mr. Shaukat Aziz
Federal Finance Minister ----Accused No. 1

Asif Saeed
Chairman National Development
Finance Corporation (NDFC) ---Accused No. 2

Arif Zahoor
Zahoor Textiles Group ---Accused No. 3

COMPLAINT UNDER S.18 (b) (ii) OF THE NATIONAL ACCOUNTABILITY BUREAU ORDINANCE 1999 (the Ordinance)

1. The Accused are either "the holders of a Public office" or "Persons" as defined respectively in S.5(m) and (o) of the Ordinance.

2. The Accused are guilty of corruption and corrupt practices as is defined in S.9 of the Ordinance and as such are subject to punishment under S.10 of the Ordinance based on the following facts and grounds:

FACTS AND GROUNDS
1. After overthrowing the Government of Nawaz Sharif on 12th October 1999 General Parvez Musharaff amongst other things pledged to weed out corruption, ensure good Governance and carry out the transparent accountability of corrupt persons. To this end the Ordinance was passed.

2. Accused No. 1 was appointed as Federal Finance Minister one of whose many responsibilities was to increase revenue which included amongst other things ensuring that willful defaulters paid back their loans.

Accused No. 1 was allegedly a clean person who would supposedly forward General Musharaff's pledge of providing good governance throughout Pakistan and in particular the banking and financial sector. As such he was trusted to oversee the collection of defaulted loans.

3. Accused No. 2 is a close associate of Accused No. 1 who prior to being appointed Chairman of NDFC ran a textile business in Partnership with Accused No. 3 of the Zahoor Textile Group. This Group owed huge amounts of money to Habib Bank Limited which it managed to reschedule during the tenure of Nawaz Sharif.

4. Accused No.2 according to an article in the "Frontier Post" dated 27-8-2000 (a copy of which is attached hereto) was forced to leave Dubai after financial irregularities committed by him and Zahoor Textiles was discovered by the Dubai authorities.

5. After having fled from Dubai in order to escape from the clutches of the Dubai authorities who wanted to question him about various financial irregularities committed by both himself and companies associated with the Zahoor Textiles Group Accused No. 2 arrived in Pakistan.

6. Accused No. 1, knowing fully well Accused No. 2's dubious reputation in financial circles and more recently in Dubai and notwithstanding his own alleged commitment to good governance, misused his authority by appointing Accused No. 2 Chairman of NDFC. By misusing his authority Accused No. 1 gave a huge benefit/favour to Accused No. 2 by making him Chairman of NDFC in breach of S.9 (iv) and vi) of the Ordinance.

7. Accused No. 2 in connivance with Accused No. 1 then as Chairman of NDFC approved working Capital of Rs. 540 million for the Zahoor Textiles Group to the benefit of Accused No. 3. Taking into account the credit history and rating of the Zahoor Textile Group such further loan was unjustified. The loan was purely given as a favour to benefit Accused No. 3 who is Accused No. 2's business partner by Accused No. 2 misusing his authority to the detriment of NDFC in connivance with Accused No. 1 who being entrusted to collect defaulted monies dishonestly and corruptly breached this trust by lending further monies to a defaulter.

8. Accused No, 1 and 2 are therefore in breach of S.9 (vi) of the Ordinance since they have misused their authority to benefit/favour another person (Accused No. 3).

9. Accused No. 3 is in breach of S.9 (iv) of the Ordinance since he is a person who has either corruptly or dishonestly or illegally through using his contacts/influence with Accused No. 3 gained for himself a valuable thing and pecuniary advantage by receiving a further loan of Rs 540 as working capital for himself and Zahoor Textiles which the credit history/rating of the company did not justify.

CONCLUSION
10. Accused No. 1, 2 and 3 have all committed acts of corruption and corrupt practices in contravention of S.9 of the Ordinance as is spelt out in the above facts and grounds and are subject to punishment under S.10 of the Ordinance.

11. The Chairman of the NAB on receipt of this Complaint is therefore requested to issue arrest warrants against all the Accused and proceed against them for committing the offences of corruption and corrupt practices in contravention of S.9 of the Ordinance.

COMPLAINANT
Pakistan Peoples Party

Through

Jehangir Bader
Secretary General

Islamabad Dated : 13-9-2000

The Reference / Complaint is based on the source incorporated as under :

NDFC Chief escape from Dubai
The Frontier Post
27 August 2000

From: NAVEED Miraj

Islamabad – Chairman National Development Finance Corporation (NDFC) Asif Saeed is alleged to have absconded from Dubai after some financial irregularities by him were detected by Dubai authorities.

Well-placed sources said that Asif Saeed, who was appointed as the chairman NDFC, ran textile business in partnership with Arif Zahoor of Zahoor Textiles Group. Their company was involved in some financial irregularity and Asif Saeed had to leave Dubai.

Asif Saeed re-emerged in Pakistan flaunting his experiences in international finance and business. Asif Saeed also claims that he has very close relationship with the Federal Finance Minister and the top boss of one of the intelligence agencies.

Meanwhile sources in NDFC said that the business partnership with Arif Zahoor continues unabated as NDFC Chairman has got approved working capital of Rs. 540 million for Zahoor Textile. It may be mentioned that during the tenure of Mian Nawaz Sharif, Arif Zahoor managed to get his loans rescheduled from Habib Bank Limited. Arif Zahoor is known to be very close to Sharif family and one of the financiers of their politics.