Nawaz Sharif’s Alleged Corruption - Raymond Baker's Book



  • “Raymond Baker”: The director of Global Financial Integrity, a research and advocacy organization in Washington, DC, and director of the Task Force on Financial Integrity and Economic Development, an international private-public coalition of civil society groups and governments working on the issue of illicit financial flows, has highlighted Corruption of Nawaz Sharif in his Book “Capitalism’s Achilles Heels – Dirty Money And how to Renew the Free-Market System".


    Corruption and criminality run from the top down, with the political class constantly looting the national treasury and distorting economic policy for personal gain. Bank loans are granted largely on the basis of status and connections. The rich stash much of their money abroad in those willing western coffers, while exhibiting little inclination to repay their rupee borrowings. Pakistan’s recent history has been dominated by two families—the Bhuttos and the Sharifs—both merely tolerated by the military, the real power in the country. When it comes to economic destruction, there’s not a lot of difference among the three.

    Pages 82-85 of the book cover the section on Nawaz Sharif:

    While Benazir Bhutto hated the generals for executing her father, Nawaz Sharif early on figured out that they held the real power in Pakistan. His father had established a foundry in 1939 and, together with six brothers, had struggled for years only to see their business nationalized by Ali Bhutto’s regime in 1972. This sealed decades of enmity between the Bhuttos and the Sharifs. Following the military coup and General Zia’s assumption of power, the business—Ittefaq—was returned to family hands in 1980. Nawaz Sharif became a director and cultivated relations with senior military officers. This led to his appointment as finance minister of Punjab and then election as chief minister of this most populous province in 1985. During the 1980s and early 1990s, given Sharif ’s political control of Punjab and eventual prime ministership of the country, Ittefaq Industries grew from its original single foundry into 30 businesses producing steel, sugar, paper, and textiles, with combined revenues of $400 million, making it one of the biggest private conglomerates in the nation. As in many other countries, when you control the political realm, you can get anything you want in the economic realm.

    With Lahore, the capital of Punjab, serving as the seat of the family’s power, one of the first things Sharif did upon becoming prime minister in 1990 was build his long-dreamed-of superhighway from there to the capital,Islamabad. Estimated to cost 8.5 billion rupees, the project went through two biddings. Daewoo of Korea, strengthening its proposals with midnight meetings, was the highest bidder both times, so obviously it won the contract and delivered the job at well over 20 billion rupees.

    A new highway needs new cars. Sharif authorized importation of 50,000 vehicles duty free, reportedly costing the government $700 million in lost customs duties. Banks were forced to make loans for vehicle purchases to would-be taxi cab drivers upon receipt of a 10 percent deposit. Borrowers got their “Nawaz Sharif cabs,” and some 60 percent of them promptly defaulted. This left the banks with $500 million or so in unpaid loans. Vehicle dealers reportedly made a killing and expressed their appreciation in expected ways. Under Sharif, unpaid bank loans and massive tax evasion remained the favorite ways to get rich. Upon his loss of power the usurping government published a list of 322 of the largest loan defaulters, representing almost $3 billion out of $4 billion owed to banks. Sharif and his family were tagged for $60 million. The Ittefaq Group went bankrupt in 1993 when Sharif lost his premiership the first time. By then only three units in the group were operational, and loan defaults of the remaining companies totaled some 5.7 billion rupees, more than $100 million.

    Like Bhutto, offshore companies have been linked to Sharif, three in the British Virgin Islands by the names of Nescoll, Nielson, and Shamrock and another in the Channel Islands known as Chandron Jersey Pvt. Ltd. Some of these entities allegedly were used to facilitate purchase of four rather grand flats on Park Lane in London, at various times occupied by Sharif family members. Reportedly, payment transfers were made to Banque Paribas en Suisse, which then instructed Sharif ’s offshore companies Nescoll and Nielson to purchase the four luxury suites.

    In her second term, Benazir Bhutto had Pakistan’s Federal Investigating Agency begin a probe into the financial affairs of Nawaz Sharif and his family. The probe was headed by Rehman Malik, deputy director general of the agency. Malik had fortified his reputation earlier by aiding in the arrest of Ramzi Yousef, mastermind of the 1993 World Trade Center bombing. During Sharif ’s second term, the draft report of the investigation was suppressed, Malik was jailed for a year, and later reportedly survived an assassination attempt, after which he fled to London. The Malik report, five years in the making, was released in 1998, with explosive revelations:

    The records, including government documents, signed affidavits from Pakistani officials, bank files and property records, detail deals that Mr. Malik says benefited Mr. Sharif, his family and his political associates:

    • At least $160 million pocketed from a contract to build a highway from Lahore, his home town, to Islamabad, the nation’s capital.

    • At least $140 million in unsecured loans from Pakistan’s state banks.

    • More than $60 million generated from government rebates on sugar exported by mills controlled by Mr. Sharif and his business associates.

    • At least $58 million skimmed from inflated prices paid for imported wheat from the United States and Canada. In the wheat deal, Mr. Sharif ’s government paid prices far above market value to a private company owned by a close associate of his in Washington, the records show. Falsely inflated invoices for the wheat generated tens of millions of dollars in cash.

    The report went on to state that “The extent and magnitude of this corruption is so staggering that it has put the very integrity of the country at stake.” In an interview, Malik added: “No other leader of Pakistan has taken that much money from the banks. There is no rule of law in Pakistan. It doesn’t exist.”

    What brought Sharif down in his second term was his attempt to acquire virtually dictatorial powers. In 1997 he rammed a bill through his compliant parliament requiring legislators to vote as their party leaders directed. In 1998 he introduced a bill to impose Sharia law (Muslim religious law) across Pakistan, with himself empowered to issue unilateral directives in the name of Islam. In 1999 he sought to sideline the army by replacing Chief of Staff Pervez Musharraf with a more pliable crony. He forgot the lessons he had learned in the 1980s: The army controls Pakistan and politicians are a nuisance. As Musharraf was returning from Sri Lanka, Sharif tried to sack him in midair and deny the Pakistan International Airways flight with 200 civilians on board landing rights in Karachi. Musharraf radioed from the aircraft through Dubai to his commander in Karachi, ordering him to seize the airport control tower, accomplished as the plane descended almost out of fuel. Musharraf turned the tables and completed his coup, and Sharif was jailed.

    But Sharif had little to fear. This, after all, is Pakistan. Musharraf needed to consolidate his power with the generals, and Sharif knew details about the corruption of most of the brass. Obviously, it is better to tread lightly around the edges of your peer group’s own thievery. So Musharraf had Sharif probed, tried, convicted, and sentenced to life in prison, but then in 2000 exiled him to Saudi Arabia. Twenty-two containers of carpets and furniture followed, and, of course, his foreign accounts remained mostly intact. Ensconced in a glittering palace in Jeddah, he is described as looking “corpulent” amidst “opulent” surroundings. Reportedly, he and Benazir Bhutto even have an occasional telephone conversation, perhaps together lamenting how unfair life has become.



  • Take this to IK, he is running like headless chicken to find something against sharifs



  • @Khanamer,

    My appologies if it hurts, But I am not the author, please direct your anger towards the author himself.



  • Write a summary of the post by anasyounus; yeh garbage kahan se akatha kartay hain aap; khairat akathay kartay kartay yeh kis kaam par gai aap?



  • ^^ Aren;t you the poster and one of the follower of the IK.... and IK as we all know said he will bring corruption to the end, now this is golden chance, somebody wrote something, hopefully backed by the evidences good enough for you to believe that they are true... and now you are not bringing it in the notice of IK... who like a headless chicken going havoc to get Sharifs out of politics for good.... don't you think these allegations are good enough to get rid of sharifs for good??? or you want to tell me that, IK do not believe in these kind of allegations...



  • @Khanamer & mangoman,

    Again My appologies if it hurts, But I am not the author, please direct your anger towards the author himself.

    This is Raymond Baker ‘s(Author) Email Address, please direct your rebuttals (if any) to this address

    rbaker@ciponline.org



  • hurts?

    bahi mujhay to heart attack ho giya ha; ambulance main hoon; par kindly is ki summary likh ke bata dain k is main kiya ha; kahan se yeh kachra copy kiya ha?



  • @Anas,

    Quit plagarizing stuff bro. The operative word is "Allegation" which is usually unproven. Set-up an appointment with Ponka Khan, show him this book and convince him to file a petition in a court of law regarding these accusations. Please shrug this phobia off.



  • Palgarizing?

    I dont know what the word means to you, but on my part I have never claimed it to be my work/research and I have given the reference of the author and Book, and that I have Copy pasted part of his book without even doing an editing of a comma.

    And infact You need to shrug off the Phobia not me, as in my post I havent even mentioned IK, but you cannot keep him out of your brain or any of your posts.

    As for "Allegation", The word 'Alleged' that you see in the title is being put in by ME, otherwise by whatever the auther writes about NS, he seems pitty convinced and didnt felt any need to Use word 'Alledge' except for once.

    Anyways, if what the author wrote in his book offends you, I have posted his email address so that You or Mr Sharif can write a rebbutal and also can ask him to appologise.



  • There is need to make laws which will prohibit people involved in huge businesses, on government jobs and other critical fields and profession to serve the nation by excelling in their on going business not to divert their focus on politics or toward people representation, this job should be done by those who have no other serious bussiness or living retired life like Imran Khan or Iltaf Hussain.



  • میں تین سال سے اس محلے کی گلیاں میں یہی گلا پھاڑ پھاڑ کر کہہ رہا ہوں یہ سطریں میرے خیلات کی سو فی صد ترجمانی کرتی ہیں ۔ اس لیے ان کو میں اپنے الفاظ میں پیش کرتا ہوں ۔

    Pakistan’s recent history has been dominated by two families—the Bhuttos and the Sharifs—both merely tolerated by the military, the real power in the country. When it comes to economic destruction, there’s not a lot of difference among the three.

    بھٹو زارداری خاندان اور شریف خاندان پاکستان کی تاریخ پر موت کی طرح چھائے ہوئے ہیں جن کو فوج اور اسٹیبلیشمنٹ جو اصل میں اس ملک کی بھاگ دوڑ سنمبالے ہوئے ہیں انہیں صرف برداشت کیا ہے لیکن جہاں تک ملک کی مئیشٹ کی تبائی کی بات ہے تو یہ تینوں اس میں برابر کے شریک ہیں ۔



  • both merely tolerated by the military, the real power in the country

    Vs

    جن کو فوج اور اسٹیبلیشمنٹ جو اصل میں اس ملک کی بھاگ دوڑ سنمبالے ہوئے ہیں ہمیشہ سرپراستی حاصل رہی ہے

    ==========

    Could never tell what ought to be. May be that's why three years time is wasted...



  • EasyGo

    میری غلطی اپ نے پکڑ لی لہاذا میں نے اس کو درست کر دیا ۔ لیکن اس مضمون کو پڑھنے کے بعد مجھے یقین ہے کہ تین سال زایا نہیں ہوئے ۔



  • There is no doubt that Nawaz Sharif, Zardari other half has done a lot of corruption, even if CJ of Pakistan declared Nawaz Sharif of no corruption charges, even then I would not believe it. Nawaz Sharif saab is an open book for everyone to read.

    As for RD book, sorry RD was the one who was freed by Nawaz Sharif, where he ran to London and his brother followed behind. Raymond Baker, I would not be surprised if he is telling the truth, however the dark secrets of NS corruption could be even worse than RB claims.



  • both merely tolerated by the military, the real power in the country

    Vs

    جن کو فوج اور اسٹیبلیشمنٹ جو اصل میں اس ملک کی بھاگ دوڑ سنمبالے ہوئے ہیں ہمیشہ سرپراستی حاصل رہی ہے

    ==========

    Could never tell what ought to be. May be that's why three years time is wasted...


    ایزی بھائی

    ان کا ایجنڈا کچھ اور ہے، یہ لوگ اتنے سادہ نہیں جتنے بننے کی کوشش کرتے ہیں

    رپورٹ کو مزید دیکھیں

    "The probe was headed by Rehman Malik, deputy director general of the agency. Malik had fortified his reputation earlier by aiding in the arrest of Ramzi Yousef, mastermind of the 1993 World Trade Center bombing"

    "The Malik report, five years in the making, was released in 1998, with explosive revelations:"

    "In an interview, Malik added:"

    گویا ریمونڈ بیکر کی رپورٹ کا برا ذارئع رحمان ملک ہیں جو ان کے لیے اب موتبر ہیں



  • Ya Allah Ya Hazooor Zardari aur Nawaz Sharif beqasoor.

    Ya Allah Ya Hazooor Zardari aur Nawaz Sharif beqasoor.

    Ya Allah Ya Hazooor Zardari aur Nawaz Sharif beqasoor.



  • Something is better than nothing and motorway must have its benefits but I always wonder you need cars for motorways which only rich can afford. Railway is generally considered an awami and cheap mode of transporation world wide, why did they not setup railway links instead of motorway for both goods and human transportation? Not sure if railway was feasible or not but never got any satisafactory answer on that.



  • The key to much of our corruption today is the fact that an elected official can "throw away" mass amounts of money through publicly funded projects by being over charged with little or NO accountability. Many times those involved with "over charging" are involved in one way or another with public office holders.

    Without the existence of a DEPOLITICIZED N.A.B., or tough Conflict of Interest laws/officer, any public office holder is as good as guilty.

    We are all humans, when we are in a position of power, it would be natural to exploit it. This has been the premise for much of the world's leading anti-corruption nations in creating pertinent laws.

    So don't sit there and tell me N.S. and company or Bhuttos or other "not so high up" Cronies found in ALL parties and INCLUDING PTI are neat and clean.

    Without these requisites I believe in, it is near impossible to prove someone guilty in court.



  • Do'nt rely on false statements.To know the facts go through below column:

    http://mobile.reuters.com/article/idUSTRE5BF01220091216?irpc=932ething

    Alistair Scrutton first joined Reuters in 1998 as correspondent in Peru. Then he moved to Buenos Aires as senior correspondent for southern Latin America, covering coups in Bolivia, rebel violence in Peru and Argentina's 2001-2002 economic explosion which sparked the world's biggest sovereign debt default. Next, as Editor in Charge for Political And General News in Latin America he spearheaded coverage across the region. In 2007, he moved to India as chief correspondent, where he has focused on India's economic and political story as well as traveling to Afghanistan, Pakistan and Nepal. In the following story, Scrutton writes about his experiences driving down a Pakistani motorway, which is like a six-lane highway to paradise in a country that usually makes headlines for suicide bombers, army offensives and political mayhem.

    By Alistair Scrutton

    ISLAMABAD (Reuters) - If you want a slice of peace and stability in a country with a reputation for violence and chaos, try Pakistan's M2 motorway.

    At times foreign reporters need to a give a nation a rest from their instinctive cynicism. I feel like that with Pakistan each time I whizz along the M2 between Islamabad and Lahore, the only motorway I know that inspires me to write.

    Now, if the M2 conjures images of bland, spotless tarmac interspersed with gas stations and fast food outlets, you would be right. But this is South Asia, land of potholes, reckless driving and the occasional invasion of livestock.

    And this is Pakistan, for many a "failed state." Here, blandness can inspire almost heady optimism.

    Built in the 1990s at a cost of around $1 billion, the 228-mile (367-km) motorway -- which continues to Peshawar as the M1 -- is like a six-lane highway to paradise in a country that usually makes headlines for suicide bombers, army offensives and political mayhem.

    Indeed, for sheer spotlessness, efficiency and emptiness there is nothing like the M2 in the rest of South Asia.

    It puts paid to what's on offer in Pakistan's traditional foe and emerging economic giant India, where village culture stubbornly refuses to cede to even the most modern motorways, making them battlegrounds of rickshaws, lorries and cows.

    There are many things in Pakistan that don't get into the news. Daily life, for one. Pakistani hospitality to strangers, foreigners like myself included, is another. The M2 is another sign that all is not what it appears in Pakistan, that much lies hidden behind the bad news.

    On a recent M2 trip, my driver whizzed along but kept his speedometer firmly placed on the speed limit. Here in this South Asian Alice's Wonderland, the special highway police are considered incorruptible. The motorway is so empty one wonders if it really cuts through one of the region's most populated regions.

    "130, OK, but 131 is a fine," said the driver, Noshad Khan. "The police have cameras," he added, almost proudly. His hand waved around in the car, clenched in the form of a gun.

    On one of my first trips to Pakistan. I arrived at the border having just negotiated a one-lane country road in India with cows, rickshaws and donkey-driven carts.

    I toted my luggage over to the Pakistan side, and within a short time my Pakistani taxi purred along the tarmac. The driver proudly showed off his English and played U.S. rock on FM radio. The announcer even had an American accent. Pakistan, for a moment, receded, and my M2 trip began.

    Built in the 1990s by then prime minister Nawaz Sharif, it was part of his dream of a motorway that would unite Pakistan with Afghanistan and central Asia.

    For supporters it shows the potential of Pakistan. Its detractors say it was a waste of money, a white elephant that was a grandiose plaything for Sharif.

    But while his dreams for the motorway foundered along with many of Pakistan, somehow the Islamabad-Lahore stretch has survived assassinations, coups and bombs.

    A relatively expensive toll means it is a motorway for the privileged. Poorer Pakistanis use the older trunk road nearby tracing an ancient route that once ran thousands of miles to eastern India. The road is shorter, busier and takes nearly an hour longer.

    On my latest trip, I passed the lonely occasional worker in an orange suit sweeping the edge of the motorway in a seemingly Sisyphean task.

    A fence keeps out the donkeys and horse-driven carts. Service centres are almost indistinguishable from any service station in the West, aside perhaps from the spotless mosques.

    The real Pakistan can be seen from the car window, but in the distance. Colorful painted lorries still ply those roads. Dirt poor villagers toil in brick factories, farmers on donkey carts go about their business.

    Of course, four hours of mundane travel is quite enough. Arriving in Lahore, the road suddenly turns into South Asia once again. Dust seeps through the open car window, endless honks sound, beggars knock on car windows. The driver begins again his daily, dangerous battle for road supremacy.

    As Pakistan unveils itself in all its vibrancy, it is exciting to be back. But you can't help feel a tinge of regret at having experienced, briefly, a lost dream.

    "Motorway good - but Pakistan," Noshad said at the last petrol station before we entered Lahore. "Terrorism, Rawalpindi," he added, referring to the latest militant attack on a mosque in the garrison town which killed dozens.

    (Editing by Jerry Norton)



  • @Zaheerabbas,

    So you think the above is an appropriate answer for this?

    ""With Lahore, the capital of Punjab, serving as the seat of the family’s power, one of the first things Sharif did upon becoming prime minister in 1990 was build his long-dreamed-of superhighway from there to the capital,Islamabad. Estimated to cost 8.5 billion rupees, the project went through two biddings. Daewoo of Korea, strengthening its proposals with midnight meetings, was the highest bidder both times, so obviously it won the contract and delivered the job at well over 20 billion rupees.""