Explainer: Who are the 700 Pakistanis in Pandora Papers?

More than 700 Pakistanis are in the data revealed in Pandora Papers and a majority of them are tax residents in Pakistan, reports Umar Cheema for The News.

Key members of Prime Minister Imran Khan’s cabinet, retired civilian and military officials and their families as well as owners of some of the country’s top media outlets, secretly own or have owned an array of companies and trusts holding millions of dollars in offshore jurisdictions, Fakhar Durrani reports for The News.

Politicians in Pandora Papers

The revelations made in the Pandora Papers, which contain the names of some prominent and key figures in Prime Minister Imran Khan’s cabinet, will be a test case for PM Khan to make his close associates answerable for holding offshore companies.

Below is the list of a few of the many prominent politicians of the government and Opposition whose names are in the Pandora Papers.

1. Shaukat Tarin:

Shaukat Tarin was recently inducted into Khan’s cabinet and appointed Finance and Revenue Minister. Tarin and three of his family members have four offshore companies registered in the British Virgin Islands (BVI) jurisdiction. The Tarin family incorporated four offshore companies —Triperna Inc, Hamraa Inc, Seafex Inc, and Moonen Inc — all of them in 2014. 

Tarin confirmed being part of the above companies directly or through his family members for the sole purpose of raising capital for his bank. 

 “We were in negotiations with a Middle East conglomerate for raising capital for my bank, through a structured transaction. The proposed investor had also taken the Central Bank’s in-principle approval for the investment.” He added that the companies remained dysfunctional and no business was carried out through them.

2. Faisal Vawda:

Former minister for water resources, Faisal Vawda, his wife, and his sister have an offshore company. The Vawda family incorporated Dazzling Worldwide Ltd in the BVI jurisdiction in 2012 to invest in UK properties, the Pandora Papers show.

Vawda told the International Consortium of Investigative Journalists (ICIJ) that he has declared all the worldwide assets held in his name to the Pakistani tax authorities.

3. Abdul Aleem Khan:

Another close aide of Prime Minister Imran Khan, Abdul Aleem Khan also owns an offshore company. The Pandora Papers show that the registered directors of Hexam Investment Overseas Limited (BVI) — Aleem Khan and his wife — approved a written resolution of the offshore company on March 1, 2017, and confirmed being directors of Hexam Investment.

National Accountability Bureau (NAB) had also initiated an investigation against Aleem Khan. It is, however, not confirmed whether he has declared the company in his tax returns or not.

Aleem Khan is now the owner of Samaa News.

4: Chaudhry Moonis Elahi:

 Federal Minister for Water Resources Moonis Elahi was the Settlor and Investment Director of the Green Hills Trust and Winthrop Fund.

Moonis wanted to invest money from the 2007 sale of land owned by Phalia Sugar Mills, an Elahi family business. Thomson Reuters Risk Management Solutions carried out due diligence of Moonis Elahi and produced a 19-page report with the details of his alleged involvement in corrupt land projects. The report mentioned fraudulent loans from the bank and selling the land to a government department. However, despite this due diligence report, Moonis was accepted as Asiaciti’s client.

The family spokesperson of Chaudhrys said that the assets of the family, including Chaudry Pervaiz Elahi and Chaudry Moonis Elahi, are declared as per applicable law.

5. Ali Dar:

The Pandora Papers reveal that former Finance Minister Ishaq Dar’s son, Ali Dar, owns two companies — Baraq Holdings Ltd and Dar Al Nahyan Ltd — registered in the British Virgin Islands.

Dar in his reply to The News said Dar Al Nahyan Limited remained dormant and no business has been done in the company, which has now been struck off the register. He said he has never been a tax resident in Pakistan and nor has he ever been involved in any professional employment or business activities whatsoever in Pakistan.

6. Sharjeel Inam Memon:

Former information minister in the Sindh government Sharjeel Inam Memon also owned three offshore companies in the BVI jurisdiction. The three companies that are owned by the Memon family include Ocean Wave Technologies Corp, Arctic Development Corp., and New Coast Executive Inc.

The companies are involved in the real estate business. The former provincial minister while talking to The News neither denied nor confirmed the companies’ ownership.

Media owners included in Pandora Papers

The Pandora Papers have brought forth some media owners’ names who have offshore companies in offshore jurisdictions.

1. Hameed Haroon:

Hameed Haroon — CEO of Dawn media group — owns an offshore company Bardney Limited, registered in Seychelles.

In his official response to The News, Haroon said the company is duly declared and is being reported to the relevant authorities in Pakistan in accordance with the applicable laws of the land.

2. Mir Shakil-ur-Rahman:

Jang Group’s Publisher Mir Shakil-ur-Rahman (MSR) owns an offshore company Brookwood Ventures Limited in the BVI jurisdiction. Mir Shakil-ur-Rahman was transferred the shares of the company on April 17, 2008. 

Mir Shakil-ur-Rahman, responding to the investigation cell, said, “No, it’s not true, I don’t own any company. However, I had this till 2018.” The News also asked him that the British Virgin Islands is a tax and secrecy haven. Why he opted to set up a company there. MSR replied that people invest in BVI as it offers attractive conditions for investment. MSR was also asked if he declared the company with the relevant tax authorities to which he said, “Yes, it was part of my wealth for the tax year 2018 and subject to taxes where applicable.”

3. Sultan Ali Lakhani:

 Express Media Group Sultan Ali Lakhani also owns an offshore company Century Media Network Inc. The company was incorporated in February 2005.

The spokesperson of the Lakhani family said all companies are legal and as per law of the land wherever applicable.

4. Gourmet Group:

Pandora Papers reveal that an employee of Gourmet group named Amna Butt was appointed director of an offshore company, Gourmet Holdings Limited in the BVI jurisdiction. The Gourmet group owns a large chain of bakeries across Punjab. In addition, the group owns a news channel called Gourmet News Network (GNN) as well.

It is, however, not confirmed whether the company is declared with the Pakistani tax authorities or not. Amna Butt was sent a questionnaire by The News, but no response has been received from her.

Military officials and family included in Pandora Papers

Apart from the politicians, media owners, and civilian bureaucrats, some top retired military officials have also been named in the new leaks.

1. Major General (retd) Nusrat Naeem:

Major General (retd) Nusrat Naeem owned a BVI company, Afghan Oil & Gas Ltd that was registered in 2009, shortly after his retirement. In his response to the ICIJ, he said that the company had been set up by a friend and that he did not use it for any financial transactions.

2. Ahsan Latif:

Ahsan Latif — son-in-law of former Governor Punjab Lt General (retd) Khalid Maqbool — owned an offshore company, Dylan Capital Limited, registered in the British Virgin Islands.

It is not clear whether Ahsan Latif has declared the above-mentioned assets before the tax authorities in Pakistan. The News sent a query to him but received no response from him

3. Muhammad Hasan Muzaffar:

Pandora Papers reveal that Muhammad Hasan Muzaffar, son of Lt General (retd) Muhammad Afzal Muzaffar, owned shares in a company registered in the British Virgin Islands, Creek Growth Capital Holding Ltd. The offshore company owned Southeast Healthcare Holding, which in turn controlled a Dubai-based medical centre that now appears to be closed.

Hasan told ICIJ that the simple fact is there is no relation of this investment to his father. He further commented that the investment was made solely from his own income earned in the UAE and came from his UAE bank account. No other family member, including his father, was involved.

4. Shafatullah Shah:

The former military secretary of Gen Pervez Musharraf, Lt Gen (retd) Shafatullah Shah owns an expensive apartment in London through an offshore company, which is in the names of his wife and son. 

5. Raja Nadir Pervez:

 Pandora Papers also reveal that Raja Nadir Pervez, a retired army lieutenant colonel and former minister in the Nawaz Sharif-led government, owned International Finance & Equipment Ltd, a BVI-registered company. In the leaked files, the firm is involved in machinery and related businesses in India, Thailand, Russia, and China. 

 He is currently a member of Imran Khan’s Pakistan Tehreek-e-Insaf (PTI). Raja Nadir Pervez did not respond to ICIJ reporters’ questions.

Businessmen and civil bureaucrats included in Pandora Papers

1. Yawar Salman:

Son of bureaucrat Salman Siddique, Yawar Salman along with another partner Noeen Ahmed Anwar registered an offshore company, just a little before the former’s father’s retirement. The company is called Cres Tech Holdings Limited in the BVI.

Yawar Salman told The News that the entity Cres Tech Holdings was incorporated as part of a then-envisaged plan to undertake a foreign business. However, owing to certain circumstances, neither any equity was contributed nor any bank account opened. Since no equity was ever contributed and the entity’s worth remains ‘nil’, the question of disclosing it to the tax authorities does not arise.

2. Javed Afridi:

The Pandora Papers have also revealed that the owner of the Pakistan Super League (PSL) franchise, Peshawar Zalmi, and renowned industrialist Javed Afridi owns three offshore companies in the BVI jurisdiction. Afridi is the beneficial owner of Old Trafford Properties Ltd, Sutton Gas Works Properties Ltd, and Gas Works Property Ltd.

Javed Afridi in his response confirmed to The News ownership of three offshore companies. He said the reason to incorporate them was for the good intention to save tax rather than avoiding any tax. According to him, the companies were almost dormant, and no business or investment was done by any of the companies.

Pandora Papers

The papers are named after the Greek myth of Pandora’s box. In the tale, Pandora opens a sealed box containing the forces of evil and suffering which, once released, were uncontainable.

BBC quoted Gerard Ryle, the director of ICIJ, as saying this leak was given the name because “we’re opening a box on a lot of things”.

This information revealed above has been named Pandora Papers and it adds significantly to what was discovered in the Panama Papers and Paradise Papers.

The Pandora Papers have unmasked the fortunes of more than 330 public officials in 90 countries. Included among them are 35 current and former leaders of different countries. The King of Jordan, the rulers of Qatar and Dubai, presidents of the Ukraine, Kenya, and Ecuador, the prime ministers of the Czech Republic and Lebanon, and former British prime minister Tony Blair, all appear in the secret files.

For Pakistan, the files pose a big test to the accountability credentials of Prime Minister Imran Khan, who had found the Panama Papers a “God-sent” opportunity to burnish his credentials as an anti-corruption warrior.

The documents were leaked to the Washington-based International Consortium of Investigative Journalists (ICIJ) which for nearly two years led an investigation collaborating with more than 600 journalists in 117 countries. This is the biggest journalism partnership in history, which involved 150 media organisations. For the Panama Papers, almost 400 journalists from 80 countries participated in the investigation. The News was the only ICIJ partner from Pakistan on both occasions. The Pandora Papers comprise 11.9 million documents whereas the Panama Papers had 11.5 million, reports The News.