Daily Times

ISLAMABAD: The Supreme Court of Pakistan on Friday ordered individuals and companies against whom the inquiry commission has recommended action for illegally getting their Rs54 billion loans written-off to file concise statement in their response before June 19.

A three-member bench headed by Chief Justice Mian Saqib Nisar ordered this, while hearing a suo motu case.

In compliance with the apex court’s earlier notices, issued on May 18 to the 222 beneficiaries – individuals and companies, the counsel of the respondents appeared before the court on Friday.

Senior lawyer Farooq H. Naek, representing five companies, requested the court to adjourn the matter and take it up after Eidul Fitr.

He said many companies still have not received notices, requesting the court to send notices through the Securities and Exchange Commission of Pakistan (SECP). The chief justice noted that the Supreme Court’s office had issued them notices and if someone would not appear, then the court will pass an ex-parte decision against him. He said many companies which got their loans written off are still operating.

He said this money belongs to the people of Pakistan, thus, the defaulters would have to return it at any cost. He said if individuals and companies who got their loans written off do not return the money, then their cases will be sent to the National Accountability Bureau.

On June 3, 2011, the apex court had constituted a three-member commission, headed by Justice (r) Syed Jamshed Ali, for recovery of written-off loans from 1971 onwards. In February 2013, the commission submitted its report, according to which, Rs87 billion were written off in 38 years – between 1971 to 2009. The Commission’s report said that loans worth Rs2.38 billon were waived off between 1971 and 1991, whereas loans worth Rs 84.62 billion were waived off between 1992 and 2009.

The report said the commission could probe only 740 different cases. It had recommended that 222 cases should also be further probed as Rs54 billion was waived off in these cases.

The report found grave irregularities in loans given to politicians, civil and military bureaucracy, but could not find proofs about waivers on political basis, as bank officials concealed facts because they were afraid of the influential persons. The bank gave business-specific reasons for writing off the loans.

The Commission subsequently put forth four options, according to which either only principle amount should be recovered from the defaulter, or the difference between the principal amount and the amount submitted.

The commission proposed that tribunals comprising on-duty or retired judges of high courts should be set up for the recovery of amounts. It also proposed legislation for the recovery of written off loans.

Further recommending that action should be taken against the provincial credit committee. However, it has given the final authority to the Supreme Court for recovery of loans.

Published in Daily Times, June 9^th 2018.