Pak says won't reopen Zardari graft cases

The Pakistan government on Tuesday defended its decision not to reopen graft cases against President Asif Ali Zardari in Switzerland, telling the Supreme Court that reports of his alleged involvement in laundering 60 million dollars were "exaggerated".

Law Minister Babar Awan, who was summoned by the apex court to explain the government's failure to fully implement a verdict striking down a controversial graft amnesty, told a five-judge bench that the law ministry's records stated there was no case against Zardari in Switzerland and no legal proceedings were currently underway in that country.

When the bench asked the minister about steps being taken by the government to bring back to Pakistan the $ 60 million that were allegedly laundered by Zardari through Swiss bank accounts, Awan said reports in this regard were "exaggerated" and were not based on facts.

"An investigation was carried out and the amount was exaggerated," he said. He ruled out the possibility that this allegedly laundered money belonged to the leadership of the Pakistan People's Party and said this was not determined in the investigation process.

The Swiss authorities had only conducted a one-sided investigation on the basis of baseless allegations, he said.

"There have been no proceedings. There was absolutely no case," Awan said. Asked by the judges as to who controlled the accounts containing millions of dollars that were frozen by Swiss authorities, Awan replied he had no information in this regard.

Awan told the court he intended to travel abroad in the coming days and sought more time to present the government's viewpoint. He also asked the court to examine certain relevant documents. Following this, the bench adjourned the matter till June 10.

The bench said the government should submit a detailed report at the next hearing on steps being taken to reopen graft cases. The apex court had initiated a suo moto case over the government's failure to fully implement its verdict annulling the National Reconciliation Ordinance, a graft amnesty issued by former military ruler Pervez Musharraf in 2007 as part of a secret understanding with slain PPP chief Benazir Bhutto.

Since it struck down the NRO last year, the apex court has been pressing the government to take action against President Zardari, one of the key beneficiaries of the amnesty.

The graft cases against Zardari in Switzerland and other countries were closed by Musharraf's regime under the NRO. However, the government has maintained that it will not reopen the cases against the President as he enjoys immunity under the constitution.

Against the backdrop of speculation about a face-off between the ruling Pakistan People's Party and the Supreme Court, Awan told the bench that the government does not desire any sort of confrontation with the judiciary.

The government respects the law, the judiciary and its verdicts, Awan said. He outlined nine steps taken by the government to implement the apex court's verdict striking down the NRO.

An official proposal for action against former Attorney General Malik Qayyum has been sent to the Prime Minister and the prosecutor general of the National Accountability Bureau, Pakistan's anti-corruption agency, has been removed in line with the court's order, he said.

The number of prosecutors is being increased and the apex court's order to replace the chairman of NAB will be implemented in "weeks, not months," Awan said.

The government will not ignore the Supreme Court's orders on the Swiss cases and it has already implemented other verdicts by the court, including rulings scrapping an LNG contract and the promotions of 54 bureaucrats, he added.

He also made it clear that there are "legal complications" and "grey areas" in approaching Swiss authorities to reopen cases. Daniel Zappelli, the public prosecutor of Geneva, has said it will be "impossible" to reopen the cases against Zardari unless Pakistan withdraws the immunity available to him as head of state.

Awan, who was accompanied by several members of the cabinet during his appearance in the packed court room, told reporters: "The rumours (about a confrontation between the executive and the judiciary) have now died. There will not be any confrontation between institutions in Pakistan".

The government presented its views in a relevant manner while showing respect for the judiciary and the judges were "receptive and magnanimous," Awan said.

He added that the bench had said that the minister did not need to appear in court again. Awan also said the court had accepted his request that the government should be allowed to present its views in the matter in the form of a concise statement.

"Certain aspects of the case that were not known till now were highlighted by me and the court was very receptive," he said.