Broadsheet case

Last updated

The Broadsheet case, officially known as the Broadsheet vs Islamic Republic of Pakistan and NAB case, is an ongoing legal case related to the non-payment of service fees to asset recovery company 'Broadsheet LLC' by the Government of Pakistan. [1]

Contents

Background

On 20 July 2000, on the orders of the Attorney General's Office and the then President General Pervez Musharraf, the National Accountability Bureau (NAB) of Pakistan hired two asset recovery companies, namely the Isle of Man registered Broadsheet LLC and UK based International Asset Recovery (IAR), to investigate and track the illegally accumulated wealth of Pakistani politicians and other influential figures including the former Prime Minister of Pakistan Nawaz Sharif. As per the agreement signed, the asset recovery companies would get 20% of the value of the assets thus recovered as service fees. [1] [2]

Case history

In 2003, the NAB terminated the agreement with Broadsheet, after making settlements with Nawaz Sharif and others. [2] However, Broadsheet claimed that it had not been informed of the settlements and it was entitled to service fees on assets it had recovered. As a result, the company filed a case of arbitration with the London Court of International Arbitration (LCIA) over non-payment of its service fees. The Broadsheet company sent a notice to the Pakistan government claiming damages of $580 million. It claimed that NAB had signed an agreement to investigate 200 individuals and the Pakistan government owed it $100 million for investigating and recovery from 6 individuals. It also said that it had delivered proofs of Nawaz Sharif's London apartments in 2000 and demanded $21.5 million for delivering these proofs. [1]

In the meanwhile, the Broadsheet company went bankrupt and was acquired by Kaveh Moussavi, an Iranian and former head of public interest law at Oxford University. The original owner of Broadsheet, Jerry James, registered another company in Colorado, which was also named "Broadsheet". [1]

In May 2008, the NAB reached an agreement with the Colorado registered Broadsheet and paid it an amount of $5 million. [3]

However, it was realised that the wrong company had been paid, when the Isle of Man registered Broadsheet continued to pursue the arbitration case on the basis that the payment was due to the original company Broadsheet, and not its owner Jerry James, and hence the payment made by NAB had no legal standing in the case between this company and the Pakistani state. [1]

The case hearings commenced in January 2016, and the Pakistan government lost the case in August of the same year. The LCIA upheld Broadsheet's arguments that Jerry James had no authority to act on behalf of the Isle of Man registered Broadsheet LLC. It further held that "Pakistan was liable to pay damages as NAB had wrongfully repudiated an asset recovery agreement with Broadsheet and committed a tort of civil conspiracy by entering into a sham settlement with a former Broadsheet executive". [3]

In November 2018, the LCIA imposed a penalty of $17 million on NAB, along an additional $3 million in case cost. In March 2019 the court ordered the NAB to pay $20 million. However, the NAB and the Pakistani government failed to comply with the court order. [4]

The Pakistan government appealed to the High Court of England and Wales against the LCIA arbitral award in favour of Broadsheet, on the ground that LCIA had failed to give sufficient reason on how it had valued the award in favour of Broadsheet. However, in July 2019 the court rejected the appeal and held that "an arbitration tribunal's failure to explain how it had valued a loss of chance claim did not of itself constitute a reason for the unsuccessful party to challenge the award under s.69 Arbitration Act 1996". It further held that Pakistan had unlawfully terminated its contract with Broadsheet. [2] [5]

In July 2020, Broadsheet also said that it would seize the assets of the Pakistan national cricket team which was in the UK at the time, though it was believed that would not be legally tenable as the Pakistan team is not representative of the Pakistan state or government but that of the Pakistan Cricket Board, an autonomous body. [6]

On 17 December 2020, the London High Court ordered that $28.7 million, inclusive of interest, be debited from the accounts of the High Commission of Pakistan in London, with a deadline of 22 December to challenge the order and a deadline of 31 December to pay the penalty. [4] However, the Pakistan government missed both the deadlines. [7]

On 1 January 2021, Pakistan's federal cabinet approved the payment of the $28.7 million to Broadsheet while also declaring it would challenge the court order to debit money from the accounts of the High Commission of Pakistan in London. [7] On 6 January 2021, an inter-ministerial meeting at the Pakistan Foreign Office was informed that even though the Pakistan government had sent several communications, the UK government did not inform the bank about the diplomatic immunity of the Pakistan High Commission accounts. On 16 January 2021, in view of the London High Court's orders on the Broadsheet case as well as the attachment of Pakistan held assets in the UK in the Reko Diq case verdict, Pakistan's Ministry of Foreign Affairs advised government entities to keep their foreign accounts and assets at a minimum in order to protect the country's foreign assets. [8]

Broadsheet inquiry commission

On 22 January 2021, the Federal Government appointed a one-man inquiry commission headed by former Supreme Court judge, Azmat Saeed Sheikh to probe into the Broadsheet scandal. However, the two major opposition parties of Pakistan – the Pakistan Muslim League (N) and the Pakistan Peoples Party – rejected the government's appointing of Justice (retd) Sheikh to the inquiry commission, citing his past affiliation with NAB as creating a "conflict of interest". [9] [10]

On 8 March it was reported that the Government's own branches the Ministry of Law, the Ministry of Finance and the Attorney General for Pakistan (AGP) office were not cooperating with the investigation and had not provided the relevant records for it. [9]

On 22 March, the commission completed its investigation into the payment made to the British-based asset recovery firm Broadsheet LLC. In its report, the commission found that the payment record of $1.5 million (Rs234m) to the fake Broadsheet was missing. It found that the records for the payment had disappeared from the ministries of finance and law, the office of the attorney general as well as the High Commission of Pakistan in London. As per a private TV channel, the files containing the payment details had been stolen from these places. [11]

See also

Related Research Articles

<span class="mw-page-title-main">Nawaz Sharif</span> Former Pakistani Prime Minister (born 1949)

Mian Muhammad Nawaz Sharif is a Pakistani businessman and politician who served as the Prime Minister of Pakistan for three non-consecutive terms. He is the longest-serving prime minister of Pakistan, having served a total of more than 9 years across three tenures. Each term has ended in his ousting.

<span class="mw-page-title-main">Pakistan Muslim League (N)</span> Conservative political party in Pakistan

The Pakistan Muslim League (N) abbreviated as PML (N), (Urdu: پاکستان مسلم لیگ (ن)) is a centre-right, conservative liberal political party in Pakistan. It is currently the third-largest party in the Senate and the largest in the National Assembly. The party was founded in 1993, when a number of prominent conservative politicians in the country joined hands after the dissolution of Islamic Democratic Alliance, under the leadership of former Prime Minister Nawaz Sharif. The party's platform is generally conservative, which involves supporting free markets, deregulation, lower taxes and private ownership. Although the party historically supported social conservatism, in recent years, the party's political ideology and platform has become more liberal on social and cultural issues; however, members have been accused of using Islamist populist rhetoric. Alongside the Pakistan Tehreek-e-Insaf (PTI) and Pakistan People's Party (PPP), it is one of the three major political parties of the country.

<span class="mw-page-title-main">Ishaq Dar</span> 3rd Deputy Prime Minister of Pakistan

Muhammad Ishaq Dar is a Pakistani politician who currently serves as 3rd Deputy Prime Minister of Pakistan since 28 April 2024, he also had the portfolio of Foreign Minister of Pakistan since 11 March 2024. He previously served as the country's finance minister from 2022 to 2023, as leader of the House for the Senate since 2022, and as Leader of the Opposition for the Senate of Pakistan from 2012 to 2013. Dar, affiliated with the PML-N, was reelected as a senator on a technocrat seat from Islamabad in the 2024 Pakistani Senate elections. He identifies as a free-market conservative and has been associated with both economically liberal and fiscally conservative policies.

The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution established in 1966 for legal dispute resolution and conciliation between international investors and States. ICSID is part of and funded by the World Bank Group, headquartered in Washington, D.C., in the United States. It is an autonomous, multilateral specialized institution to encourage international flow of investment and mitigate non-commercial risks by a treaty drafted by the International Bank for Reconstruction and Development's executive directors and signed by member countries. As of May 2016, 153 contracting member states agreed to enforce and uphold arbitral awards in accordance with the ICSID Convention.

Mir Shakil ur Rahman, also known as MSR, is a Pakistani media mogul and businessman. He is the founder of the 24-hour news cycle network, Geo TV.

<span class="mw-page-title-main">Mansurul Haq</span> Pakistani admiral

Admiral Mansurul HaqNI(M) HI(M) SBt BJSN is a former senior officer of the Pakistan Navy who was forcibly retired from his service in 1997 on the allegations leveled against him in the corruption and kickbacks resulting during the technology transfer of submarines from France.

<span class="mw-page-title-main">Shehbaz Sharif</span> Prime Minister of Pakistan (2022–2023; since 2024)

Mian Muhammad Shehbaz Sharif is a Pakistani politician and businessman who is currently serving as the 23rd prime minister of Pakistan since March 2024, having previously served in the post from April 2022 to August 2023. He has also served as the president of the Pakistan Muslim League (N) (PML-N). Previously in his political career, he served as the chief minister of Punjab three times, making him the longest-serving chief minister of Punjab.

<span class="mw-page-title-main">National Accountability Bureau</span> Pakistans anti-corruption agency

The National Accountability Bureau is Pakistan's anti-corruption agency. Its chairman is Nazir Ahmed Butt, a retired general.

<span class="mw-page-title-main">Khawaja Asif</span> Defence Minister of Pakistan

Khawaja Muhammad Asif is a Pakistani politician who serves as the Defence Minister of Pakistan from since 19 April 2022, he also has the Responsibility of Federal Minister for Aviation since 11 March 2024. Previously having Defence Ministry post from April 2022 to August 2023 in Shehbaz Sharif's Government. Previously, he had also been a member of the National Assembly of Pakistan from August 2018 till August 2023. Previously, he was a member of the National Assembly from 1993 to 1999 and again from 2002 to 2018 and till date. Since May 2019 he is nominated by PMLN to act as the Parliamentary Leader in National Assembly, he acted in this role till the dissolution of the assembly in 2023 and again took the charge after elections on 2 March 2024.

<span class="mw-page-title-main">Corruption charges against Benazir Bhutto and Asif Ali Zardari</span> Corruption scandal in Pakistan

After the dismissal of Benazir Bhutto's first government on 6 August 1990 by President Ghulam Ishaq Khan on grounds of corruption, the government of Pakistan issued directives to its intelligence agencies to investigate the allegations. After the fourth national elections, Nawaz Sharif became the Prime Minister and intensified prosecution proceedings against Bhutto. Pakistani embassies through Western Europe—in France, Switzerland, Spain, Poland and Britain—were directed to investigate the matter. Bhutto and her husband faced a number of legal proceedings, including a charge of laundering money through Swiss banks. Though never convicted, her husband, Asif Ali Zardari, spent eight years in prison on similar corruption charges. After being released on bail in 2004, Zardari suggested that his time in prison involved torture.

<span class="mw-page-title-main">Chile–Pakistan relations</span> Bilateral relations

Chile–Pakistan relations refers to the bilateral relations between Pakistan and Chile. Neither country has a resident ambassador. Pakistan has a non resident ambassador in Buenos Aires. Chile has a non resident ambassador in Abu Dhabi.

The Reko Diq Mine is a planned mining operation, located near Reko Diq town in Chagai District, Baluchistan, Pakistan. Reko Diq represents one of the largest copper and gold reserves in the world having estimated reserves of 5.9 billion tonnes of ore grading 0.41% copper and gold reserves amounting to 41.5 million oz, and a mining life of at least 40 years.

<span class="mw-page-title-main">Hamza Shahbaz</span> Former Acting Chief Minister of Punjab

Muhammad Hamza Shahbaz Sharif is a Pakistani politician, businessman, and the eldest son of current Prime Minister Shehbaz Sharif. He served as the Leader of the Opposition in the Provincial Assembly of the Punjab from September 2018 to April 2022, and resumed this role on 20 October 2022 and continued until the dissolution of the assembly. He briefly held the position of Chief Minister of Punjab from 30 April 2022 to 26 July 2022. His tenure as a member of the Provincial Assembly of the Punjab spanned from August 2018 to January 2023. Prior to this, he was a member of the National Assembly of Pakistan from June 2008 to May 2018.

Ittefaq Foundries, commonly known as Ittefaq Group, was a Pakistani integrated steel producer headquartered in Lahore. It was founded in 1951 by Sharif family. At its peak, it was a manufacturer of diesel engines up to 200 hp, lathes, road rollers, agricultural equipment, and electric fans.

<span class="mw-page-title-main">Maryam Nawaz</span> Pakistani politician (born 1973)

Maryam Nawaz Sharif is a Pakistani politician, currently serving as the 20th Chief Minister of Punjab, in office since 26 February 2024. She is the daughter of former Prime Minister of Pakistan Nawaz Sharif and her initial involvement in public life was through her family’s philanthropic organisations. However, her political career began in earnest in 2012 when she took charge of the election campaign for the 2013 general elections. Following the elections, she was appointed as the Chairperson of the Prime Minister’s Youth Programme in 2013. Despite her active role, she resigned from the position in 2014 after her appointment was legally challenged in the Lahore High Court.

The Sharif family is the most prominent political family in Pakistan and is based in Lahore. The Sharif Family are Punjabi-speaking Kashmiris with their origin in Anantnag, Jammu and Kashmir and settled in Punjab in the late 20th century.

The Nandipur Power Project is a 425 MW combined cycle thermal power plant situated at Nandipur near Gujranwala in the Punjab province of Pakistan. Being constructed by the China Dongfang Electric Corporation, the project was completed in March 2015. The initial cost of the project was Rs. 27 billion, but this escalated during the revised project cycle-1 and totalled Rs. 58.42 bn at completion. The power plant faced a series of hiccups during and after launching its commercial operations. Prior and after construction, the project continued to attract a number of court cases, inquiries, investigations, audits, and political and commercial disputes. The plant collapsed after 5 days of operation, launching a series of inquiries ordered by then prime minister Nawaz Sharif.

<span class="mw-page-title-main">Panama Papers case</span> 2017 Pakistan Supreme Court case

The Panama Papers case, or the Panamagate case, was a 2017 landmark decision by the Supreme Court of Pakistan that disqualified Nawaz Sharif, the prime minister of Pakistan, from holding public office for life.

<span class="mw-page-title-main">Fawad Hasan Fawad</span> Pakistani government official (born 1960)

Fawad Hasan Fawad is a Pakistani public policy practitioner, former civil servant who served in BPS-22 grade as the Principal Secretary to two Prime Ministers, Nawaz Sharif and Shahid Khaqan Abbasi; and later as caretaker Federal Minister for Privatisation and Federal Minister for Inter Provincial Coordination.

The Reko Diq case, officially known as the Tethyan Copper Company Pty Limited v. Islamic Republic of Pakistan is an ongoing legal case between the Government of Pakistan and the Tethyan Copper Company (TCC) over breach of the Australia–Pakistan Bilateral Investment Treaty (BIT) and illegal denial of mining rights to TCC at the Reko Diq Mine in Chagai District, Balochistan.

References

  1. 1 2 3 4 5 Khan, Balach (18 January 2021). "Broadsheet Saga: Two decades of incompetent decisions". The Correspondent PK.
  2. 1 2 3 Mizner, Andrew (24 July 2019). "Pakistan loses High Court battle to overturn USD 21 million award". CDR Magazine.
  3. 1 2 Malik, Hasnaat (10 June 2020). "NAB seeks $17m for payment of penalty". Express Tribune.
  4. 1 2 "NAB 'clarifies' agreement with Broadsheet LLC". PT Profit. 4 January 2001.
  5. ↑ Farooq, Umar (27 July 2020). "Pakistan team faced with legal threat of equipment being seized". ESPNCricInfo.
  6. 1 2 "Pakistan to pay $28.7 mln in damages to US firm but will challenge UK court order". Arab News. 2 January 2021.
  7. ↑ Malik, Hasnaat (16 January 2021). "Govt scrambles to protect precious foreign assets". Express Tribune.
  8. 1 2 Virk, Saqib (8 March 2021). "Govt not cooperating with its own Broadsheet panel". Express Tribune.
  9. ↑ Guramani, Nadir (22 January 2021). "PML-N, PPP reject appointment of ex-SC judge to head Broadsheet inquiry". Dawn.
  10. ↑ "Payment record of Rs234m to fake Broadsheet missing". The News. 23 March 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.