A messy affair: Pakistan pays Rs4.59 bn to British firm for lost case
LONDON/ISLAMABAD: The Pakistan High Commission has made a payment of $28.706 million (Rs4.59 billion) on behalf of the National Accountability Bureau (NAB) to the assets recovery firm Broadsheet LLC after losing the long-running litigation at the London supreme court – 17 years after hiring the firm to trace alleged foreign assets of dozens of Pakistanis and being unable to seek out any.
The London High Court’s Financial Division had issued on 17 December a Final Third Party Order for payment to the NAB’s former client Broadsheet by 30th of December – drawing curtains on a case that has cost Pakistani taxpayers billions of rupees.
Ironically, Broadsheet was hired by NAB during Pervez Musharraf’s government in 2003 to trace assets within the UK and USA of quite 200 Pakistanis (called ‘targets’ within the contract) including generals, politicians, businessmen - Benazir Bhutto, Asif Ali Zardari and Nawaz Sharif because the chief targets. The firm didn’t recover one asset of any target anywhere within the world but it’s litigation against NAB started over the broken contract when the NAB ended its accept violation of the terms and conditions.
A Pakistan High Commission source, on condition of anonymity, confirmed to The News that it had received the writ for the payment from London supreme court and had “no choice” but to suits . At the sooner hearings, the court held NAB liable for contractual damages and breach of contract from the day its signed the contract to trace assets of Pakistanis.
On a hearing on 17 December, the London supreme court ordered that $28.7 million should be debited by 30th of December. After the order was made and its copies sent to the United Bank Limited’s branch near Oxford Street, Pakistan High Commission and therefore the NAB, the High Commission wrote a letter to the bank threatening that it'll stop doing business with the bank if it made the payment to Broadsheet.
The News has seen correspondence sent from High Commission London to the Pakistan government asking to “facilitate the payment of USD 28,706,533.34”. “In case of non receipt of written payment instructions by 30 December 2020, the bank will haven't any option to proceed with unilateral debiting the accounts of Pakistan High Commission to satisfy the payment amount as stipulated within the writ ,” the UBL wrote to Pakistan High Commission after receiving the order, consistent with the note sent by High Commission to Pakistan ministry .
The High Commission letter added: “In response, the Mission has sent a communication to the Chief military officer UBL Brian Firth conveying that any attempt by the Bank to proceeds unilaterally debiting the account of Pakistan High Commission to satisfy the payment amount, without instructions, would be a violation of law of nations and a breach of trust and can have impact on our future relationship with UBL.”
The News understands that Pakistan High Commission also sent a “Note Verbale” to British government seeking exemption which the Foreign and Commonwealth Office (FCO) should “take up the matter with the relevant authorities” which the accounts of Pakistan High Commission “cannot be debited/frozen under any circumstances” because these “enjoy exemption under Vienna Convention.”
A source confirmed here that after receiving the London supreme court order, Pakistan High Commission was requested to supply written payment instructions with debit account details to facilitate the payment of $28,706,533.35 in line with the ultimate Third Party Order issued by court.
The government source said that NAB had sent £26 million into the High Commission account at the top of June 2020 into the UBL account near Oxford Circus but this wasn't the complete amount that ought to are deposited within the checking account of PHC and there was a shortfall. The News has learnt that the NAB didn’t appeal the 17 December order of London High Court’s Financial Division.
“The NAB had until 24 December to appeal the choice but NAB’s lawyers at Allen & Overy advised NAB that it's exhausted all legal options and any longer litigation will increase costs on many folds including for Broadsheet, to the NAB lawyers, penalties and accruing interest,” said the source.
Foreign Office officials in Pakistan have claimed that the High Commission account had not been deducted but the High Commission source in London said the payment to the Broadsheet may be a legal matter and compliance is vital alternatively face repercussions.
Allen & Overy wasn't available to discuss Thursday but previously a source at Pakistan High Commission had said that Pakistan had made to the defence firm payments of £11 million and £2 million for the previous work. It’s understood that the entire final bill of the firm might be the maximum amount because the payment made to Broadsheet. The High Commission source said that the firm has not invoiced yet for the last three hearings.
In June 2020, the NAB had sought Rs4.41 billion from the Finance Division to clear $27.277 million outstanding liabilities of M/s Broadsheet. This was after the Broadsheet LLC won a case of arbitration against the NAB within the Chartered Institute of Arbitration, London. The Arbitrator had issued part final award (quantum) for $21,589,460.00 along side interest.
The Chartered Institute of Arbitration also issued part final award (costs) amounting to $5,637,130.50 against the govt of Pakistan through NAB. the entire amount payable stood at $27,226,590.50.
When contacted a NAB source said that he cannot comment as “the office is closed” when the decision to comment was made which “the official record associated with the case is in office because the case is extremely old from 2003 and therefore the decision of the case was announced in 2016 before this management of NAB”.
“The official response are going to be given after obtaining relevant information during office hours in due course of your time ,” said the NAB spokesman. In August 2020, the Broadsheet had secured a freezing order in London on $26 million in Pakistani state funds reserved in various UK full service bank accounts.
Through a London based supreme court of Justice, the corporate obtained a 3rd Party Debt Order which directed the United commercial bank to freeze financial assets in its accounts that belong to the Pakistani state – effective until the ultimate hearing which made the ultimate order in favour of Broadsheet.
0 Comments