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February 21, 2017

Panama Leaks: SC slams NAB, FBR for failing to do their jobs

ISLAMABAD:The Supreme Court of Pakistan, on Tuesday, clammed NAB and FBR for failing to investigate the offshore companies named in the Panama Papers scandal.

Chiding both the NAB and FBR for failing to do their jobs, Justice Ijaz Afzal said, "It has been a year and NAB did not initiate any investigation,". "Those who had been named in the Panama Papers should at least have been interrogated by NAB," Justice Azmat Saeed added.

Proceedings of the case were adjourned till Wednesday.

I am aware of my responsibility: NAB chairman

When Justice Gulzar asked chairman NAB regarding what action the bureau had taken when the Panama Leaks scandal had come to the fore, to which the NAB chairman responded by stating that he knew his responsibilities. NAB Chairman Qamar Zaman Chaudhry informed the court that the case had come to the Public Accounts Committee in 2016.

The judge then stated that in the Public Accounts Committee, NAB had claimed that the case did not come under its circle of authority. The NAB chairman, however, maintained that he had said that NAB would initiate investigation only after relevant authorities had conducted their formalities.

Justice Gulzar asked the NAB Chairman if anyone regulates NAB? The chairman replied that laws regulate NAB.

FBR chairman admits immediate steps were not taken

The legal representative for the Federal Board of Revenue (FBR) on Tuesday admitted that the institute had not taken immediate steps with regard to the details submitted by the Sharif family in the Panama Leaks case.

According to details, a five-member larger bench headed by Justice Asif Saeed Khosa resumed proceedings of the Panama Leaks case. The legal representative of the FBR was called in court to provide details regarding the names of Pakistanis mentioned in the Panama Papers scandal.

"Prove your actions with the help of records," said Justice Gulzar. "What steps were undertaken by you after the replies were submitted?" he asked.

The FBR chairman replied that he had contacted the Foreign Office over offshore companies named in the Panama Papers. He said he had sent notice to 343 people in September 2016, of which 52 people refused ownership, while 39 were not Pakistani citizens. He added that 92 individuals agreed to owning offshore companies while 12 individuals have passed away.

The bench seemed irked at the FBR's delay in carrying out its task as it stated that the bureau had taken a year to complete a job that could be finished within hours. He stated that it took the FBR six months to contact the Foreign Office, which was situated only at a distance of 200 yards from the its office.

"Whatever the FBR is doing, is in front of everyone," remarked Justice Gulzar.

"When and to which institute did you write the letter to demand travel history? Produce the record," asked Justice Gulzar.

The FBR lawyer admitted that he did not have the record to produce before the bench. The court asked him whether he needed the Supreme Court's interference to enhance the scope of the investigation.

The FBR lawyer replied that the issue was pending in the Supreme Court hence it caused complication.

"We admit immediate steps were not taken," stated the FBR lawyer. "The confirmation of 39 foreign-based companies' owners could not be done," he added.

"In other words, what you are saying is that the FBR has done nothing with regard to money laundering?" inquired the bench.

The FBR lawyer stated that there were separate laws and institute to tackle the issue of money laundering to which Justice Ijaz Afzal replied:-

"Where the FBR wants to take action, it takes. You should have taken action immediately."

The FBR chairman stated that Maryam, Hassan and Hussain Nawaz had replied to the notices that had been sent to them on November 21, 2016. He stated that Maryam had claimed that she did not own any property abroad neither did she mention being a trustee to any property. He stated that Hussain Nawaz had replied that he had been living abroad since 2000.

FBR chairman further stated that the bureau takes action once tax returns are filed. He stated that Pakistan does not have any agreement regarding any exchange of tax information with Panama.

Justice Khosa remarked that had any institute done its job, then the case would not have come to the Supreme Court of Pakistan in the first place.

During the last hearing, the Supreme Court had ordered NAB and FBR chairmen to appear in person in the court and present the record of money laundering cases against Sharif family and Hudabiya Mills.

 

Courtesy www.thenews.com.pk


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