ISLAMABAD - National Bank of Pakistan on Saturday moved Supreme Court, pleading it to direct for opening accounts of Omni Group’s sugar mills for recovery of bank’s loans and mark up to the tune of millions of rupees owed to the group
It also requested the top court for formation of a committee to operate the Group’s sugar mills to ensure that defaults do not occur either for the farmers or the banks, including the NBP.
“The crushing season starts in November and no crushing will destroy sugarcane farmers in Sindh; the NBP and other banks will not be able to recover the advances made except by selling the plants, machinery, buildings and lands,” the application stated, expressing the fear that the national economy had already slowed down while no crushing in 8 sugar mills will aggravate the situation further.
The application is filed by Advocate Naeem Bokhari on behalf of the NBP in a suo moto case regarding alleged money laundering of billions of rupees through fake bank accounts wherein owners of Omni Group, reportedly close aides of Pakistan People Party Co-chairman Asif Ali Zardari, are also named.
A six-member Joint Investigation Team (JIT) has been probing the scam and all the accounts of Omi Group and its subsidiary businesses have been seized while the Group’s owner and main accused Anwar Majeed is already in the custody of Federal Investigation Agency (FIA).
Omni Group became client of the NBP in 2003 onwards by opening the accounts and availing various financing facilities of bank and the relationship is intact till date while mark up was paid regularly till March 2018 after which the accounts of Omni Group were debt blocked by the FIA on July 31.
The application added that the NBP had earned approximately Rs7 billion as a mark up from the Omni Group with not a single default or write off since 2013.
The bank, in its application, has given complete details of outstanding amounts against financial facilities of Omni Group’s 8 sugar mills. It stated that there were regular withdrawals and deposits in the normal course of business in the accounts of Omni Group. These withdrawals were related to general working capital requirements of the companies.
“From 2003 to 2008, NBP earned approximately Rs7 billion as mark up from the Omni Group, with not a single default or write off,” it said.
The application stated that July 31 letter was received by the NBP compliance group on August 3 which was a Friday. The directive of FIA was handed over to assistant vice president Afzal Sadiq for implementation and dissemination of the FIA letter to relevant branches where the accounts were maintained.
Afzal Sadiq had cardiac issue where after on account of his illness he forgot to implement the instruction for dissemination of the FIA letter. This duty was recalled by Afzal Sadiq on August 9 and emails were sent to relevant branches.
Between 4th and 10th August, total withdrawal of outflow was Rs188.84 million while inflow of Rs307.26 million, which is more than outflow by Rs118.421 million. However, due to non-compliance of FIA directive, Afzal Sadiq was suspended and inquiry was initiated. The lapse was totally inadvertent and on account of sickness of the officer. However, no loss occurred to NBP.
As a government-owned institution, the NBP has felt compelled to bring these essential facts to the court’s notice, the application stated.