KARACHI – An additional district and sessions court indicted Axact Chief Executive Officer Shoaib Shaikh and others in a multi-million money laundering case on Wednesday.
Mohammad Junaid and Younis have also been indicted during the hearing of the case by District and Sessions judge (South) who also summoned the witnesses in the case during the next court hearing; the suspects denied the charges.
Axact CEO Shoaib Shaikh has been accused by the Federal Investigation Agency (FIA) of having illegally transferred Rs170.17 million to a Dubai-based firm, Chanda Exchange Company, in April 2014.
He was arrested by the FIA on February 26 this year, after the Sindh High Court rejected his protective bail application.
The Axact scandal surfaced in May 2015 and sent shock waves across Pakistan when The New York Times published a report claiming the company sold fake diplomas and degrees online through hundreds of bogus schools making “tens of millions of dollars annually”.
In January 2018, Chief Justice Mian Saqib Nisar took suo motu notice of the Axact fake degree scandal after international news reports once again revealed that over 3,000 UK citizens had purchased fake degrees from Axact in 2013 and 2014.
The apex court also took notice of the money laundering case after the fake degree re-emerged, subsequently directing the Sindh and Islamabad high courts to promptly decide all pending cases against the company.
Axact also operates couple of media outlets by the name Bol News and Pak News, a case regarding a delay in payment of salaries to the staff is also pending with the apex court.