KARACHI: A government law officer on Wednesday informed the Sindh High Court that the Federal Investigation Agency (FIA) had closed a money laundering inquiry against a former managing director of the Pakistan International Airlines.

The deputy attorney general (DAG) submitted that such recommendations had been sent to the head office of FIA for approval.

Former PIA chief Mohammad Aijaz Haroon had moved the SHC last year against the FIA for initiating an inquiry against him for allegedly laundering money from Pakistan to the United Kingdom, purchasing properties there and remitted funds through unlawful means.

When a two-judge bench headed by Justice Mohammad Iqbal Kalhoro took up the matter for hearing, the DAG along with the inquiry officer appeared in court.

Former MD Aijaz Haroon challenged probe initiated on an anonymous complaint

He submitted that the inquiry against the petitioner had been closed and recommendations in this regard had been sent to the agency’s headquarters for a formal approval.

On the request of the petitioner’s lawyer, the bench disposed of the petition along with pending applications.

The former PIA managing director submitted that the FIA initiated an inquiry on a complaint, filed by unknown persons, alleged that the petitioner held assets procured by ill-gotten money in the name of his legal heirs/representatives. However, the complaint did not provide details.

The complaint also stated that the petitioner had transferred undeclared money to the UK to purchase properties in his and his family members’ names.

The petitioner argued that the impugned inquiry was unlawful and ultra vires to the FIA Act, 1974 and rules.

He submitted that he was not a public servant as his association with the PIA was not in any manner an employment for the federal government as he never discharged any function required to be performed by public servant, but an agent of the board of directors for the national flag carrier.

He further submitted that the impugned inquiry was politically motivated since he was closely associated with a member of parliament and a political party leader.

The FIA in its comments filed in September last year stated that the inquiry was registered in 2018 on a pseudonymous complaint, which contained enough and specific information to be inquired under the FIA Act.

It stated that there was substantial material procured during the inquiry that corroborated the contents of the complaint as the petitioner accumulated undeclared foreign assets, which were later on declared in the Federal Board of Revenue with alleged fabricated justification.

The comments of the FIA stated that there was sufficient material available on record, which showed accumulation of assets beyond source of income by the petitioner.

It said he was an accused in a case registered at the FIA-Corporate Crime Circle for misusing his power and he was also accused in a National Accountability Bureau’s reference in Rawalpindi.

Published in Dawn, April 7th, 2022