Benazir Bhutto told the Swiss Examining Magistrate that she was unaware of the funds held in Swiss banks in the name of offshore companies, her husband and other relatives.
A government spokesman on Wednesday said that she was asked about the funds held in Swiss banks in the name of offshore companies, beneficially owned by Nusrat Bhutto, Asif Zardari and her former brother-in-law at the time she was prime minister.
"To these questions, Benazir answered that she was not aware of these facts and she had nothing to do with her mother or husband or any other relative's own businesses," the spokesman said.
On September 19, the Swiss Examining Magistrate conducted hearing of Swiss money laundering case.
In the case, Benazir, Zardari and their agent Jens Schlegelmilch are the indicted persons on charge of aggravated money laundering.
During the hearing, Benazir and Jens Schlegelmilch were questioned from 10:45 am till 7:00 pm.
Pakistan's Ambassador to Switzerland Fauzia Abbas was also present inside the courtroom. The Government of Pakistan was represented by the Attorney General and Prosecutor General.
Local Swiss laws, however, did not permit the two to go inside the court, the spokesman said.
When Benazir was told that the same offshore companies had received millions of dollars as 'commission' for awarding of the SGS-Cotecna contracts, she offered no explanation, the spokesman said.
She was asked whether it was only pure coincidence that many close relatives of hers, when she held government office in Pakistan, benefited from 'commissions' from SGS-Cotecna, she said she did not know.
She also denied having been influenced in any way by her relatives to approve the PSI (pre-shipment inspection) contracts. The spokesman said that on many occasions Benazir let Jens Schlegelmilch answer difficult questions.
On a question about a ledger written by Schlegelmilch about a sharing of 50 percent to Zardari and 50 percent to herself in relation with the offshore company Bomer Finance, Benazir said, "The writer of this mention would he more qualified to answer the question."
Schlegelmilch stated that Asif Zardari wanted to share the money on Bomer between his family and his wife's family, in case he died.
Schlegelmilch also gave answers to certain payments that he had made as agent for the offshore companies on instructions from Nusrat Bhutto or Asif Zardari.
The spokesman said Schlegelmilch in particular mentioned of having bought a piece of jewellery in London for Benazir with funds deposited on the Swiss account of one of the offshore companies belonging to Asif Zardari.
He was even proud of getting a substantial discount from the jeweller (Chatilla in London) by indicating that the jewel was for Benazir Bhutto.
Schlegelmilch in the end paid nearly 120,000 pounds for the necklace.
Benazir confirmed that Jens Schlegelmilch had informed her, while they were both in London, that the piece of jewellery was at her disposal, but that she refused it.
Asked by the examining magistrate the reason for her refusal, Benazir said that it was after having discussed it with her mother, who had told her that the gift was inappropriate.
When asked by the Attorney General, Geneva, why it was inappropriate, Benazir said there were "personal reasons" for that.
When asked about "personal reasons," she said that she would prefer not to answer because whether she had accepted the necklace or not, it still did not mean that she was aware of the source of the funds used to buy it.
The spokesman said Benazir indicated that if she refused the gift, it was because of her "emotional status" at the time, "which should not be of any interest for the State of Pakistan".
Finally, she refused to confirm whether she knew that the gift was made by her husband, invoking the principle of "double jeopardy", because, she said, of the criminal proceedings pending in Pakistan against her for corruption in the SGS matter.
The magistrate also asked Benazir whether she chose to be tried by a court with or without jury. To which she chose the court 'without jury'.
Because all questions could not be addressed by the magistrate, the Attorney General, Geneva, and the State of Pakistan, Benazir will be summoned within the next weeks to attend other hearings in Geneva.
The magistrate directed Benazir to make herself available for the next hearing, when summoned.
On July 30, 2003 the Examining Magistrate had found Benazir, Asif Zardari, and their agent Jens Schlegelmilch guilty on charges of simple money laundering, and sentenced Benazir and Zardari to six months 'suspended imprisonment'.
He had also ordered for restitution of their nearly $12 million to government of Pakistan held in the name of offshore companies.
The accused had challenged the decision and opted for transfer of the case to Attorney General, Geneva.
The Attorney General, Geneva, in his verdict on December 22, 2003 ordered the examining magistrate to pronounce an additional indictment on charges of aggravated money laundering.
The three accused, after being sentenced in aggravated money laundering case, can face sentence up to five years rigorous imprisonment and a fine up to one million Swiss francs as well as forfeiture of all assets originating from the offence. Replying to a question, the spokesman said that Benazir gave long answers to questions put to her by the court and tried to give "political angle" to all her answers.
"She remained very emotional throughout the marathon court hearing and gave a misleading statement that her government was dismissed by the military," the spokesman said.
The spokesman said that nearly 4.35 million pounds were shifted to London from the offshore companies, for the purchase of 'Surrey Palace'.