Broadsheet verdict: UK court reprimands NAB, says reckless conduct gave rise to "tortuous liability"

(Karachi) Determining the liability issues in Broadsheet ruling, a British court criticised the National Accountability Bureau (NAB) in its Broadsheet ruling, saying the anti-graft body's reckless conduct gave rise to tortuous liability, as alleged.

The verdict was issued by UK Judge Sir Anthony Evans in his final award determining the liability issues, a report published in Dawn stated.

The judgment stated that NAB made a deliberate decision ignoring economic harm to the firm, as the claimant submits, to turn a blind eye to damages that would or might be caused to the Broadsheet by entering into May 20, 2008 Settlement Agreement with Jimmy James and his Colorado companies or in making payments to them.

Doubtful legal concept

Sir Evans said that evidence establishes that those who took the executive decision on behalf of NAB to enter into the settlement agreement believed that the Broadsheet was in liquidation and that the liquidator was not a party to the negotiations by accepting Jimmy James explanation that Broadsheet LLC had been reconstituted in the form of Broadsheet LLC in Colorado, which at best was a doubtful legal concept and if correct, could only mean that Broadsheet had ceased to exist.

As per the ruling, NAB's consultant Ahmer Bilal Soofi paid an agreed amount of $1.5 million in London by two cheques to Broadsheet LLC Gibraltor (a misnomer) or Broadsheet LLC (Colorado) and Jimmy James.

The judge mentioned that the total value of the assets attributed to former prime minister Nawaz Sharif was $805.9 million. At the same time the award also acknowledges that the figure being gross do not necessarily relate to the current value of the alleged properties owned by the Sharifs. Of the total value of assets, $622 million was in Pakistan, $54 million in Saudi Arabia, $24.5 million in the UAE besides $105 million in the United Kingdom.

Damages for breaching contract

The quantum decision held Pakistan and NAB responsible of paying $21.58 million plus interest to the Broadsheet LLC as damages for the Oct/Dec 2003 breach and repudiation of June 2000 ARA (asset recovery agreement).

The award summarizes the damages recoverable by the claimant (Broadsheet LLC) for the breach of contract with compound interest at the appropriate deposit rate.

A total of $21.58 million has to be recovered and given to Broadsheet of which $1.5 million had to be recovered from the Sharifs on account of Avenfield flats, $19 million for other assets from Sharifs, $48,760 from Schon Group, $25,000 from Sultan Lakhani, $85,600 from Fauzi Kazmi, $381,600 from Lt Gen (retd) Zahid Ali Akbar, Aftab Sherpao $210,000 and $180,000 from Jamil Ansari etc.

The backdrop

Head of Broadsheet Kaveh Moussavi, an asset recovery firm, claimed that former prime minister Nawaz Sharif offered them a bribe to abandon the probe against his foreign assets.

The Broadsheet CEO, in a YouTube interview, said the company had flatly refused the deal offered by a person claiming to be a nephew of Nawaz Sharif, in the year 2012, retorting that the Broadsheet did not negotiate with crooks.

He revealed that Sharif family has assets not only in the United Kingdom but across the globe.

Moussavi said the process of accountability is continuing, but after President Musharraf left office, his successors started hampering the process by not giving access to information and termination of Broadsheet’s contract.

Broadsheet documents being publicised

Adviser to Prime Minister on Accountability and Interior Shahzad Akbar said in a press conference on January 18 that the government has decided to make public the judgment of a British court regarding Broadsheet and Pakistan involving liability and quantum awards.

He added the country has been badly affected by deals made by previous governments and national reconciliation ordinances (NROs) issued in the past that cost the national exchequer billions of rupees.

The adviser said they had approached Broadsheet to make the judgment clear on the instructions of the prime minister to ensure transparency.

He also mentioned that the premier formed a ministerial committee on Broadsheet and directed them to furnish its recommendations within 48 hours.