Chief Minister Punjab Shahbaz Sharif and Tariq Shafi, a close relative of the Sharif family, in their statements before the joint investigation team (JIT) did not accept to have signed the 25 percent share sale agreement of Ahli Steel Mills in 1980. Wajid Zia, key prosecution witness and head of JIT that probed the Panama Papers case, stated this while testifying before Accountability Court Judge Muhammad Bashir in Al-Azizia Steel Mills and Hill Metals Establishment reference filed by National Accountability Bureau (NAB).
The witness further said that sale the share agreement of 1980 was filed by accused Hussain Nawaz and Hassan Nawaz along with their applications in the Supreme Court and they adopted the stance that Shafi had signed the agreement dated April 14, 1980 with Abdulla Kayed Ahli as authorized representative of Shahbaz Sharif.
Former Prime Minister Nawaz Sharif was present in the court during the hearing and he was later allowed to go.
Zia also produced attested copies of cheques issued by Nawaz Sharif in favor of Maryam Safdar at different times as well as submitted major transaction chart of amount transferred to accounts of the accused Sharif and Maryam from Hill Metals before the court.
The witness further said that accused Hussain, Hassan and Maryam submitted concise statements with their applications in the Supreme Court. It was explained that Muhammad Sharif, the father of Nawaz Sharif, set up Gulf Steel Mills in Dubai in 1974 with Tariq Shafi as an ostensible owner and another partner namely Hussain, he said.
Objecting to the statement, defense counsel Khawaja Haris said the statement made by the witness is not relevant to this case. This portion is the content of the documents and the accused Hassan and Hussain are not present before this court.
To this, the judge said that the court had declared Hassan and Hussain as proclaimed offenders.
NAB Prosecutor Sardar Muzaffar Abbasi said that prosecution can conclude the statement on Friday but the defense counsel was not allowing the witness to complete his statement. "Defense is damaging our examination-in-chief," Abbasi said.
The witness said that according to the documents submitted before the Supreme Court, Gulf Steel Mill was set up with zero equity and on a 100 percent loan. Mian Sharif decided to sell 75 percent shares of Gulf Steel Mill to Ahali in 1978 to settle an outstanding bank loan.
Zia said that a new company, Ahli Steel Mills, was established with 25 percent shares ostensibly held in the name of Tariq Shafi and 75 percent shares owned by Ahli. "In 1980, 25 percent shares of Ahli Steel Mill were sold to Ahli for consideration of AED20 million which were invested with Qatari royal family," he further testified.
The witness said that as a result of settlement between the accused Hussain Nawaz and representative of Hamad bin Jassim bin Jaber Al Thani in 2006, the ownership of the Avenfield properties was transferred.
He said that along with an application, an affidavit of Tariq Shafi was also filed which broadly explained setting up and selling of above companies. Shafi received AED12 million without specifying the mode of such payment in six quarterly installments, he said.
The witness said that another affidavit of Shafi was filed by accused Hussain and Hassan along with an application which further explained that he received AED12 million in cash in six installments from Ahli and handed them over to Fahad bin Jassim bin Jaber al Thani.
He said that the JIT recorded the statement and identified contradictions and anomalies in the affidavit he submitted in the apex court in the light of his statement. Shafi could not produce any receipt of receiving cash from Ahli of 25 percent shares of Gulf Steel Mills as well as no receipt when he handed over the cash to the representative of Fahad Bin Jasim. "The JIT analyzed the issue of cash payment by Shafi to Fahad and concluded that neither had Shafi received the amount of AED12 million from Ahli nor had handed over it to the representative of Fahad," he said.
Zia further said that the 1978 agreement of Gulf Steel Mills was a three-party agreement among Ahli, Shafi and Bank of Credit and Commerce International (BCCI). Under the 1978 agreement, 75 percent shares were sold to Ahli and the agreement shows that AED21 million were to be paid directly to the BCCI against the loan. The agreement also shows that there was a liability of EAD14 million against Gulf Steel Mills and its settlement was the responsibility of Shafi, he said.
The second agreement attached with the application of the accused was a partnership agreement between Ahli and Shafi which showed that 25 percent shares were held by Shafi whereas 75 percent shares were of Ahli. Zia presented details of cheques issued by the former Prime Minister Nawaz Sharif to his daughter Maryam at different times.
The witness said that on August 14, 2016 Sharif issued a cheque for Rs 195,000 to Maryam while a cheque for Rs 13,806,000 on April 1, 2017, a cheque for Rs 12 million on June 13, 2015, a cheque for Rs 2,880,000 on November 15, 2015, a cheque for Rs 6,500,000 on November 1, 2015, a cheque for Rs 12,500,000 on May 5, 2015, a cheque of Rs 1,800,000 on November 21, 2015 and a cheque for Rs 34,130,625 were issued on June 28, 2015 in favor of Maryam.
Similarly, Sharif issued a cheque for Rs 13 million on March 15, 2015, a cheque for Rs 68 million on February 9, 2015, a cheque for Rs 22,900,000 on September 4, 2015, a cheque for Rs 2,000,00 on May 21, 2016, a cheque for Rs 40 million on March 27, 2016, a cheque for Rs 5 million on February 14, 2016, a cheque for Rs 37,322,316 on May 15, 2016, a cheque for Rs 600,000 on January 1, 2017 and a cheque for Rs 30 million on February 10, 2016 in favour of Maryam Nawaz. The court adjourned the hearing till May 14. Zia will continue recording his statement on the next hearing.