The Hindu : Swiss court ruling against Benazir

Online edition of India's National Newspaper
Thursday, Feb 27, 2003

International

International

Swiss court ruling against Benazir

By B. Muralidhar Reddy

ISLAMABAD Feb. 26. The former Pakistan Prime Minister, Benazir Bhutto, suffered a major setback as the Pakistan Government claimed that a Swiss court had charged Ms. Bhutto and her spouse, Asif Zardari, for using offshore companies to receive kickbacks and commissions in the frame of entering into a governmental contract.

The chairman of the Pakistan National Accountability Bureau (NAB), Hafiez Munir, announced at a specially-convened news conference that the contract was with SGS and Cotecna. He said the court had accepted the state of Pakistan as a damaged party.

Lt. Gen. Hafiez described the decision of the Swiss court as a landmark in NAB's efforts to repatriate the assets collected by disloyal public officials and concealed in Swiss bank accounts.

There was no immediate reaction from the Pakistan People's Party (PPP) to the development. In the past, the PPP has accused the Accountability Bureau of being vindictive and selective in framing charges against politicians.

The NAB chief said the order of the judge was conveyed to Ms. Bhutto, husband Mr. Zardari and their alleged accomplice Jens Schlegelmilch through their attorneys. Lt. Gen. Hafiez said that Ms. Bhutto and Mr. Zardari had not appealed against the court's decision.

By virtue of court's decision, the state of Pakistan had been handed over on February 17, 2003, in the first phase, case files containing more than 3000 documents.

In September 2002, the state of Pakistan filed a request before the judge concerned in Geneva to become a damaged party in the proceedings on the plea that the state of Pakistan in fact was passed on the cost of alleged bribes paid by SGS and Cotecna to Ms. Bhutto and Mr. Zardari and their Swiss agent.

On November 4, 2002, after hearing arguments of both sides the Swiss Judge gave his order in favour of the Government of Pakistan accepting that Pakistan was directly damaged by actions of Ms. Bhutto and Mr. Zardari and their Swiss agent.

Lt. Gen. Hafiez said that in its judgment the court observed that Pakistan was, therefore, a victim of passive corruption or mismanagement of its public interest. Consequently, Pakistan was also victim of alleged money laundering committed in Switzerland.

The investigations evidenced that SGS and Cotecna paid $ 13,535,437 to various companies and beneficiaries included Ms. Bhutto, Mr. Zardari, Nasir Hussain, ex-brother-in-law of Ms. Bhutto.

The Swiss agent of Ms. Bhutto and Mr. Zardari, however, field an appeal but by its decision dated January 15, 2003 the Court of Appeal-Geneva upheld the decision of accepting Pakistan as a damaged party.

The court of appeal made a temporary restriction concerning the use of documents and exhibits obtained in the frame of the Swiss Criminal Proceedings only inasmuch as they concern the acts held against Jens Schlegelmilch.

He said that Ms. Bhutto and Mr. Zardari had not challenged the decision. But Jens Schelegelmilch filed an appeal before the Swiss Supreme Court on February 18, 2003.

The decision of the Court of Appeal is immediately enforceable unless the Swiss Supreme Court decides otherwise.

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Swiss court ruling against Benazir