ISLAMABAD – The National Accountability Bureau (NAB) was sent a notice for causing a hefty loss to the national exchequer after it paid a $28.7 million fine to the Broadsheet without deducting the withholding tax amount.
The anti-graft watchdog was to deduct 15% or $4.3 million (nearly Rs690 million) withholding tax while paying the amount to the UK-based company, local media reported.
Reacting to the development, the Federal Board of Revenue (FBR) has issued a notice to NAB.
Pakistan, during the tenure of Pervez Musharraf, roped in Broadsheet in 2000 to track down the foreign assets of purchased by the Pakistani politicians through looted money.
Broadsheet exposed massive corruption, money laundering of ruling elites, says PM
However, NAB ended the asset recovery agreement with the firm in 2003, pushing Broadsheet and another company involved as third party to move the London High Court for damages.
The UK-based companies claimed that Pakistan owned them money according to the terms agreed upon since the government was taking action to seize assets identified by the firm including the Avenfiled apartments of the Sharif family.
Later, an arbitration was held by Sir Anthony, who found the claims of the companies valid. Later, the London High Court endorsed the findings, ordering Pakistan to pay $28 million to Broadsheet.
On Wednesday, the federal approved constitution of a one-member inquiry commission comprising former Supreme Court judge Azmat Saeed Sheikh to investigate the recently surfaced revelations related to Broadsheet scandal.
