The Supreme Court of Pakistan (SC) has allowed Turkish ship, Kaya Bey, to temporarily locate to Dubai after hearing an appeal filed by the federal government.
In its appeal, Ministry of Water and Power states, "Pakistan shall be seriously prejudiced in the International Centre for Settlement of Investment Disputes (ICSID) Tribunal proceedings if a vessel Kaya Bey is not allowed to sail for its flag-registry and class certification," adding that in the circumstances it is appealed that the Court may permit the temporarily sailing of the Ship to Dubai for the reasons stated in the order of the Tribunal.
The apex court directed the Chairman National Accountability Bureau (NAB) to ensure recovery of the outstanding amount, if any, and warned that the Chairman would be held responsible if the ship is allowed to leave the territorial waters of Pakistan "therefore, he can take measure on his own to allow temporary sailing of the ship outside the territorial jurisdiction of Pakistan. He shall himself, under section 23 of the National Accountability Ordinance (NAO) or any other provisions shall ensure that the outstanding amount found due against the Ship Kaya Bey is recovered."
In its judgement, the Court states, "In this view of the matter, we dispose of the appeal to the extent of Karkey with the observation that let the National Accountability Bureau (NAB) effect recovery of this amount, subject to all just and legal exceptions. However, if at a latter stage any further amount is found due over and above the amount mentioned by NAB in the calculation noted hereinabove, it shall be the responsibility of the Chairman NAB to effect its recovery if the Ship had left the territorial waters of Pakistan. Accordingly, the complaint to the extent to Karkey is disposed of in the above terms."
According to documents exclusively available with Business Recorder, M/s Lakhra Power Generation Company Ltd. (Lakhra), a Pakistani state-owned power company and Karkey Karadeniz Elektrik Uretim A.S. (Karkey) entered into a rental services contract in December 2008.
Later, the contract was declared illegal and void ab initio by SC order dated March 30, 2012 in the suo motu proceedings. The NAB was also directed vide order November 26, 2012 passed in CMA NO 4649/ 2012 to effect recovery of an estimated amount of US $120 million from Karkey. NAB cautioned the Ships brought in Karkey in terms of section 23 of NAO while disposing of CMA NO. 4649/ 2012.
The court observed, "However, if at a later stage any further amount is found due over and above the amount mentioned by NAB in calculation noted hereinabove, it shall be responsibility of Chairman NAB to effect its recovery, if the ship has left the territorial waters of Pakistan."
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