ISLAMABAD – Adding to the flurry of ongoing troubles for the former ruling family of Pakistan, it has been alleged that Arif Naqvi, the founder of Dubai-based Abraaj Group, paid $20 million in securing the cooperation of Sharif brothers for K-Electric sale.
According to an article published by the Wall Street Journal, the money was paid to businessman Navaid Malik so he could secure the coperation of Nawaz Sharif and Shehbaz Sharif, who both served as the prime minister and Chief Minister Punjab respectively.
The article, which has shaken up the House of Sharif for one more time, states that the assistance was sought to sell Abraaj’s stake in K-Electric; the Government of Pakistan owns a 24.6 per cent stake in the power utility.
Claiming that the official documents were there to bolster the report, the American paper says Omar Lodhi, a partner at Abraaj, informed Naqvi of Malik’s assurance that Shahbaz Sharif was ‘willing to give a strong endorsement’ of the K-Electric deal to Chinese bidders; it happened in October 2015.
The email also attributes the businessman as saying it is ‘important for him to share every detail with the Sharif brothers and get their blessings as well as their instructions as to how this money [$20 million] should be distributed,’ such as ‘a portion to charity’ or ‘a portion to the election fund kitty’.
A lawyer of the Sharif family has denied any discussion with Malik as described in the e-mail.
Naqvi Denies Allegations
Abraaj owner Naqvi has denied being part of any conversation that involved a payment to anyone in political office to facilitate the sale of K-Electric involving Sharifs.
He said Malik was an Abraaj adviser on a variety of activities and that the contract was part of a lengthy discussion about the terms of that role.
‘The final agreement ensured that no conflict of interest would occur,’ claimed Naqvi.
Diversion of Funds
Another claim made in the report was that the investors were questioning the use of their investments destined for company’s healthcare fund which were diverted.
The piece claims that Naqvi set up a healthcare fund by securing commitments from Bill and Melinda Gates Foundation and other Western Institutions; the fund’s investments include Islamabad Diagnostic Centre in Pakistan and hospital chain Quality Care India.
However, according to the report by the paper, Abraaj moved investor money meant for hospitals and companies into accounts that paid its own expenses, salaries and loans.
The article also alleges that Naqvi diverted more than $200m to his personal accounts, companies linked to him, his family and his former assistant.
https://en.dailypakistan.com.pk/business/leading-investment-firms-pakistani-chief-steps-down-over-customer-complaints/
However, Naqvi said he was entitled to draw down funds from Abraaj, including for his sons and The Modist, an online luxury-clothing retailer started by his former assistant Ghizlan Guenez.
Abraaj founder Arif Naqvi denies any wrongdoing and says the transfers were appropriate.
‘Abraaj used money from the healthcare fund on a temporary basis for general corporate purposes,’ Naqvi stated.
Khawaja Asif Refutes Report
PML-N leader and former minister for energy, Khawaja Asif Wednesday said Abraaj Group had contacted the government in 2016 and asked for different NOCs as they were engaged in talks with Shanghai Electric to strike a deal.
Asif, in an interview to Geo News, revealed that at that time the Ministry of Water and Power had some problems with Ministry of Petroleum as the NTDC and Sui Southern claimed that the K-Electric had to pay them Rs 80 billion and Rs 60 billion respectively.
The politician said it was not possible for the government to interfere in the matter of tariff.
‘The matter could not be finalised because of the very issue. Their security clearance was also blocked, while the Privatisation Commission was also holding clearance to them,’ he claimed.
The firebrand leader asserted that Nawaz Sharif gave no instructions to him about the K-Electric nor did Shahbaz Sharif.
Khawaja Asif said he had no contacts with Naveed Malik other than social.
‘Naveed never talked to me over the issue,’ he added and affirmed that he had to safeguard the interest of Pakistan.
