Pakistan is not likely to opt for International Court of Justice (ICJ) to resolve bilateral disputes with the firms of other countries despite arbitration's failure, official sources Business Recorder. The federal cabinet scheduled to meet on Monday in Gwadar with Prime Minister Shaukat Aziz would approve the proposal.
Pakistan would also opt out of extradition regime with the plea that it would only implement Extradition Act, 1972 as provided in paragraph-6 of article-44, the sources added. The United Nations' General Assembly on October 31, 2003, through a resolution, had adopted a convention against corruption and Pakistan signed it but the cabinet did not rectify it.
"Corrosive effects of corruption on democracy, development, rule of law and economic activity have been realised and this law will be a leverage to fight against corruption," the sources continued. The convention will further support Pakistan's efforts in recovering the proceeds earned through corruption from other jurisdictions.
The NAB, which deals especially with financial crimes, has proposed that Pakistan may ratify the convention but para-2 of article 66 allows dispute resolution between the states through the International Court of Justice (ICJ) after failure of arbitration.
"The option of ICJ is expensive in terms of cost and resources and para-3 of the convention allows any State to opt out of this article at the time of ratification by declaring itself not bound to para-2 of article 66," the sources added.
The federal cabinet, which is scheduled to meet on March 19 in Gwadar under the chairmanship of Prime Minister Shaukat Aziz, is expected to ratify the convention. Article 44 of the convention encourages the State parties to use the convention as the legal basis for extradition.
The NAB has also recommended that Pakistan should opt out of this provision and declare that its extradition regime would only be governed by Extradition Act, 1972 as provided in paragraph-6 of article-44, the sources continued.
Article 6 of the convention provides that each State party shall, in accordance with the fundamental principles of its legal system, ensure the existence of a body or bodies, as appropriate, that prevents corruption by such means as (a) implementing the policies referred to in article-5 of the convention and where appropriate overseeing and co-ordinating the implementation of those policies; and (b) increasing and disseminating knowledge about the prevention of corruption.
Similarly, article 46 (13) requires each State party to designate a central authority that shall have the responsibility and power to receive requests for mutual legal assistance.
The sources said that there was a dispute between the NAB and Federal Investigating Agency (FIA) for being the central authority for dealing with the corruption cases.
NAB is of the view that it may be nominated for the purposes of both the articles 6 and 46.The Cabinet Division is, however, of the opinion that in terms of entry No 34 under serial No 18 of schedule-II to the rules of business 1973, anti-corruption laws (except the NAB ordinance 1999) fall within the purview of the Ministry of Interior, which implements laws through FIA. Therefore, anti-corruption laws (and for that matter the convention under consideration) is not the exclusive domain of the NAB.
The Cabinet Division had purposed that in accordance with article 6 of the convention, Pakistan might nominate NAB or FIA or both for the purpose. The Cabinet Division is also of the view that for the purposes of article 46 of the convention, Pakistan may nominate Ministry of Interior as the central authority for receiving and disseminating all requests for mutual legal assistance under the other relevant Ministries/Divisions, including NAB.
The sources said that the proposal had been forwarded to all the concerned ministries for comments of which Ministry of Foreign Affairs recommended that ratification of convention subject to NAB or FIA or both may be nominated as focal point for the purpose of Article 6 of the Convention; for being effective and independent bodies under legal cover to prevent corruption.
It has also been suggested that Ministry of Interior may be nominated under article 46 of the convention as central authority for receiving and disseminating all requests for mutual legal assistance in consultation with all relevant ministries or NAB.
The Interior ministry supported the proposal that NAB instead of FIA be nominated as central authority for crime/corruption control under article 6 of the convention, as all anti-corruption and economic crime cases stand transferred from FIA to NAB.
It also supported nomination of NAB for the purpose of article-46 for receiving and disseminating all requests for mutual legal assistance under the convention. According to sources, Finance Ministry acceded to the proposal saying that they have forwarded the suggestions of State Bank of Pakistan on money laundering, laundering of proceeds of crime and bank secrecy.
NAB reiterated its stance for its nomination as central authority for the purposes of article 6 and 46 of the convention. After receiving comments of all the concerned Ministries and Divisions, the Cabinet Division has nominated NAB as the central authority for the purposes of article 6 and 46 of the convention.
It may be mentioned that a State, after becoming a party to the convention, is entitled to withdraw from the convention for reasons of its sovereignty.
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