KARACHI: Expressing displeasure over absence of Axact chief executive officer Shoaib Shaikh in a money laundering case, the Sindh High Court on Wednesday warned that the court would take appropriate action under the law if he again failed to appear in court at the next hearing.

A division bench of the SHC, headed by Justice Naimatullah Phulpoto, was hearing an appeal filed by the Federal Investigation Agency against the acquittal of the Axact chief in a case pertaining to illegal transfer of Rs170.17 million to a Dubai-based firm, Chanda Exchange Company, in April 2014.

During the previous hearing, the court had also expressed extreme annoyance over the absence of Mr Shaikh, also a key figure in a fake degrees scandal, and directed his counsel to file his client’s medical certificate if he was actually ill.

On Tuesday, Axact chief’s counsel Advocate Anwar Mansoor Khan also did not appear and his junior lawyer informed the court that he was busy before the Supreme Court in Islamabad.

The FIA informed the court that the agency had written to the interior ministry for deputing a special public prosecutor in the case.

IGP told to file reply on plea against street crimes

The bench put off the hearing of the case to Feb 26.

The Axact scandal surfaced in May 2015, when The New York Times published a report that claimed the company sold fake diplomas and degrees online through hundreds of fictitious schools, making “tens of millions of dollars annually”.

The FIA had filed a plea against the acquittal of Mr Shaikh in 2016 in a money laundering case, arguing that he was exonerated from the charges by the trial court despite strong evidence that proved his involvement in money laundering.

The Axact CEO was accused of having illegally transferred Rs170.17m to Dubai-based Chanda Exchange Company in April 2014. Following The New York Times report the offices of Axact were sealed, its CEO and key officials were arrested and a probe was launched on the basis of the allegations.

In January, Chief Justice Mian Saqib Nisar took suo motu notice of the Axact fake degrees scandal after international news reports said over 3,000 UK citizens had purchased fake degrees from Axact in 2013 and 2014.

The news came just months after an in-depth investigation by Canada’s national broadcaster uncovered that hundreds of people working in diverse fields across Canada possess bogus degrees issued by Axact.

In its last hearing, the apex court had ordered the Sindh and Islamabad high courts to promptly decide the pending cases regarding Axact.

The chief justice had directed the SHC to constitute a bench to hear the case within a week and give the verdict within two weeks.

Plea against street crimes

The same bench expressed displeasure over police for not submitting its reply on a petition filed against growing street crimes in the city.

The bench was hearing a petition of Muzamil Mumtaz Meo Rajput, a lawyer, who had approached the court against resurgence in street crimes in the metropolis.

Adjourning the case till Feb 27, the court directed police chief to ensure submission of its response by the next hearing.

Earlier, the petitioner had submitted that the graph of street crimes in the city had increased considerably and criminals were depriving citizens of their valuables. He added that besides valuables, many people had lost their lives and others have been injured during street crimes.

Rajput had informed the court that snatching incidents were taken place in whole city, particularly in the Landhi and Korangi areas. He had maintained that the police had failed to control the increasing street crimes.

Making the chief secretary, home secretary, inspector general of police, and cellular companies respondents, the petitioner requested the court to direct the police and other law enforcement agencies to take action against the criminals and provide protection to the citizens.

Published in Dawn, February 22nd, 2018