REFERENCE / COMPLAINT NO. XXIV

Reference dated 9-8-2004 – Million Rs Loan Write-off

To:
The Chairman
National Accountability Bureau
President’s Secretariat
Islamabad

Pakistan Peoples Party .........COMPLAINANT

V/s

1. Mr. Shaukat Aziz, Federal Minister for Finance, Government of Pakistan

2. Mr. Nasrullah Dareshak, Member National Assembly, Chief Whip Chairman Indus Sugar Mills … RESPONDENTS


Subject: Complaint under section 5 and 18 (b) sub section – ii of the NAtional ACCOUNTABILITY BUREAU (NAB) ORDINANCE 1999 against the holders of public office for punishment under Section 10 of NAB Ordinance for causing huge financial loss to the national exchequer by corruption and corrupt practices

1. The respondents in this complaint do fall within the ambit of NAB Ordinance 1999 for the purposes of investigation trial and punishment.

2. The respondents are reportedly guilty of corruption and corrupt practices as defined in Section 9 of the Ordinance and as such are subject to punishment under Section 10 of the Ordinance based upon the following facts and grounds:

Facts and Grounds:
According to a news item published in South Asia Times dated July 27, 2004 (copy enclosed), a serious case of corruption and abuse of power in respect of writing off a loan of Rs. 400 millions by the Ministry of Finance (being run and controlled by the Respondent No. 1) which was obtained by the Respondent No. 2 in respect of his self owned M/s Indus Sugar Mills.

According to the information received, the Respondent No. 2 who is an elected MNA and Chief Whip in the National Assembly owes Rs. 400 millions to different banks but while abusing his official position being a public office holder, has maneuvered the Respondent No. 1 into writing off his aforesaid loan. The Respondent No. 1, who is an international banker, is in the middle of his election campaign to get into the National Assembly to become next Prime Minister is using his massive financial power as Finance Minister to oblige supporters. The Respondent No. 2 was not only obliged by the write off Rs. 400 million but the Respondent No. 1 has also approved fresh capital of the Rs. 300 million in favour of the Respondent No. 2, to run the Indus Sugar Mills. With the write off and new capital, at least one important parliamentarian’s vote for Respondent No. 1 is going to cost the Pakistani Tax Payers Rs. 700 million.

Conclusion:
Based on the above facts and grounds respondents have shown willful indulgence in corrupt practices under Section 9 of the Ordinance. Such persons are subject to punishment under Section 10 of the Ordinance.

As such the Chairman of the NAB is called upon to initiate investigation in connection with the matters set out herein above and further proceed to file a reference against respondents for violating the provisions of Section 9 of the Ordinance punishable under Section 10 of the Ordinance in competent court of law and proceed against those concerned for violating Section 9 of the Ordinance.

Complainant
Pakistan Peoples Party

Through:
(Shah Khawar Advocate)
Islamabad Dated : 9-8-2004
The Reference / Complaint is based on the source incorporated as under :

Shaukat Aziz Buys Dareshak's Vote for Rs 700 Million
SOUTH ASIA TIMES - July 27, 2004
By M T Butt

ISLAMABAD, July 27: International banker Shaukat Aziz, now in the middle of an election campaign to get into Pakistan Parliament to become the next Prime Minister is using his massive financial powers as Finance Minister to oblige supporters and at least one major case of such political bribe has come to light.

Finance Ministry officials say orders have been issued to banks to write off at least Rs 400 million due against Nasrullah Dareshak, the Chief Whip of the majority party supporting Aziz. Dareshak owns the Indus Sugar Mills which owes Rs 400 million to banks but he has blackmailed Mr Aziz into writing off his loans. Dareshak is also a close friend of current interim Prime Minister Choudhry Shujaat Hussain, who himself is the beneficiary of massive write off of loans done by General Pervez Musharraf to get his support against Nawaz Sharif and his political party.

Shujaat was opposed fiercely in the National Assembly when he sought elections for his 45-day stint as Prime Minister in transition.

Makhdoom Amin Fahim raised objections against the electoral exercise dubbing Ch. Shujaat Hussain as 'disqualified' to contest the election because of being a defaulter of the banks' loans.

PPP's Raja Pervez Ashraf, Ch. Aitzaz Ahsan, Syed Khurshid Shah, Syed Naveed Qamar and other opposition members raised strong objections on Shujaat's candidature. Raja Pervez Ashraf and Ch. Aitzaz Ahsan of the PPP contended that they have moved the Election Commission and higher courts challenging Shujaat 's candidature being a defaulter.

The confirmation that Shujaat had got loans written off was presented in the National Assembly by the Finance Ministry run by Shaukat Aziz in what many saw as a quietly hatched conspiracy to disqualify him from becoming the permanent Prime Minister.

Finance Ministry officials told the South Asia Tribune Dareshak was not just stopping at getting Rs 400 written off before the election of Shaukat Aziz as Prime Minister.

He is also seeking fresh capital of Rs 300 million to run the Indus Sugar Mills and that has also been approved by Aziz.

With the write off and new capital, at least one important parliamentarian’s vote for Aziz is going to cost the Pakistani tax payers Rs 700 million.

The New York Times on Monday confirmed in a report by its correspondent David Rohde that Aziz was running in a carefully chosen, pro-government district “that is being showered with government money.”

Aziz denied in a speech in his Sindh election campaign that he was using government money to campaign for his seat.

But using his position as the Finance Minister to order loan write off and issuance of new working capital to the tune of hundreds of millions of rupees is also political corruption, analysts say.