Former Prime Minister Nawaz Sharif's son Hassan Nawaz had told the Joint Investigation Team (JIT) that probed the Panama Papers case that he had set up Capital FZE between the years 2000 and 2001 when his family was in exile in the Kingdom of Saudi Arabia (KSA).
Wajid Zia, key prosecution witness and head of JIT during the cross-examination in Flagship Investments reference on Tuesday told the Accountability Court Judge Muhammad Arshad Malik that Hassan Nawaz appeared before the JIT on June 8, 2017 and stated with respect to ownership of Capital FZE that he had opened this company in 2000-2001 when his family was in exile in the KSA.
While responding to a question asked by defence counsel Khawaja Haris, Zia said it is correct that one of the issues before the JIT during investigation pertained to the real ownership and business of Capital FZE. It is also correct that one of the judges of the Supreme Court (SC) had noted that the real ownership as well as business of the said company is unclear and it needs to be explained, he added.
Former Premier Sharif was present in the courtroom during the hearing but he was later allowed to leave.
Outside the court, however, Sharif avoided answering questions about current political situation and former President Asif Ali Zardari's desire to have a meeting with him (Sharif).
About the business of Capital FZE, Hassan Nawaz stated before the JIT that the company never had any assets or liabilities attached to it, Zia said, adding that Hassan had further confirmed that he made a transaction of approximately GBP 650,000 to Quint Paddington from Capital FZE.
The witness said the accused Hassan had further explained that Allied Irish Bank had provided a loan to his company Quint Paddington but due to its own circumstances, the bank asked the loan to be returned overnight.
The accused also explained that property pertaining to Quint Paddington had been sold at a loss as Quint Paddington did not pay back the loan, he said.
Zia said that Hassan explained to the JIT that the GBP 650,000 had been given to Capital FZE because he intended to purchase a property in Dubai but later he decided not to purchase it.
He said that the JIT did not put any question to Hassan when he recorded his statement to the JIT with respect to the assertion made by him regarding the ownership and business of Capital FZE.
The witness said that it is correct that on June 6, 2017 accused Hassan had made a statement with respect to the Avenfield properties and business model followed by him in the UK, i.e., purchase and sale of property, but the only specific question put to him by the JIT as noted in its report pertained to the Avenfiled properties.
He said Hassan again appeared before the JIT on July 3, 2017 and the JIT put question to Hassan regarding financial statement of Quint Limited and Quint Eaton Place 2 Limited. On the same date, he was asked regarding Alanna Services Limited, Que Holding Limited, Lankin SA, Quint Limited, Minerva, Arrina, and exchange of money from Hussain Nawaz to Hassan and from Hassan to Chaudhry Sugar Mills. But no question was put to Hassan regarding the statement made by him on June 8, 2017 with respect to ownership, business and of the loan arranged through Capital FZE.
Deputy Prosecutor General NAB Sardar Muzaffar Abbasi objected to conducting cross-examination over source documents by Haris. However, the court allowed Haris to continue cross-examination.
To a question, Zia said that two trading licenses were included in the source documents. Both trading licences were issued on October 1, 2001 and their expiry date was September 30, 2013. It is correct that a third trading licence was also included in the source documents, he said, adding that the third trading licence expired on September 3, 2006.
He said that the JIT did not make the third trading licence part of its report. The source documents also included a letter written by registrar of Capital FZE to Standard Chartered Bank, he said.
Zia said that two members of the JIT took two trading licences to Dubai for attestation.
The court adjourned hearing of the case till Wednesday (today) and Haris will continue cross-examination of the witness.