Annex A

1. CAUSING LOSS TO EOBI & CONFESSION BY ACTING CHAIRMAN SECP

1. On Oct 2, 2002 NAB filed reference against officials of EOBI and Prudential Commercial Bank for depriving FIBs (Federal investment Bonds) valuing Rs 1,040 million and causing wrongful loss to the EOBI of Rs 1.618 billion. Tahir Mahmood was part of the scam and recently on 9 .11. 2018 Tahir Mehmood appeared in Accountability Court and accepted his statement recorded under 161 and 164 along with cross examination.

2. Although the key accused, a former chairman EOBI Sheikh Bartakulah and a banker Tahir Siddiqui, entered into plea bargain with NAB, Tahir went scot-free. This was despite the fact he had narrated in the confessional statement that he was promised a job, shares in the shady business and investments in the brokerage house of the guilty banker whose 12 benami companies he got registered along with brokering his corrupt deals with the then chairman EOBI and managing cash kick backs.

3. As per the details Tahir Mahmood joined EOBI in April 2, 1995 on a deputation from Corporate Law Authority and was absorbed by EOBI in May 31, 1997 as Director Investment EOBI and remained there until 2000. Even after leaving EOBI and joining SECP as Incharge of CRO Karachi he continued to facilitate these crooks in continuing their fake deals which caused humungous loss to EOBI. On Feb 27, 2002 NAB filed a reference 20/ 2002 Before the Accountability Court against the Ex-Chairman EOBI Sheikh Barkatullah, and others. The reference stated that Sheikh Barkatullah, Ex Chairman EOBI in connivance with the Muhammad Tahir Siddiqui, GM Finance of Prudential Commercial Bank Limited in connivance with others illegally invested Rs 8 Billion deprived EOBI of FIBs of the face value of Rs 1,040 million, causing loss of Rs 1.6 Billion.

4. One of the main accused Mr. Noman Ahmed, Son in law of Ex Chairman EOBI Sheikh Barkatullah, became approver and in his statement has clearly stated the illegal dealings between EOBI and Prudential group and how (refer page 5 of his Approver statement attached as page 365 of the case file) the moment Tahir Mahmood took charge of Investment Wing of EOBI, deals started executing between EOBI and Prudential Group without any problem.

5. Noman in his statement also described in detail how Tahir Mehmood has been instrumental in firming up all the deals and how meetings between accused EOBI and Prudential Group members used to hold at Tahir Mahmood house and fake proposal were typed at his house. Noman also mentioned how Sheikh Barkatullah asked for Jeep in kick back which Jeep was selected by Noman and Tahir Mahmood.

6. Noman Ahmed (Approver) statement also clearly mentioned that how even after leaving EOBI Tahir Mahmood aided and abetted the commission of crime by drafting the fraudulent proposal on the basis of which EOBI's Investment into Federal Investment Bond worth Rs 1,040 million were defrauded. The deal was drafted by Government Employee Tahir Mahmood who had left EOBI at that time and serving SECP , and he was the main brain

behind all these fake transaction which is evident from the fact that Approver in this case Noman Saeed has categorically stated that how Tahir Mahmood aided and abetted with the accused persons. Approver Noman in his statement mentions this fact as under:

7. An approver's statement as well as the confessional statement of Tahir Mehmood (who is presently Chairman Securities and Exchange Commission of Pakistan), reveals how Tahir Mahmood played an instrumental role in facilitating corruption, kickbacks and registering the benami companies with SECP in EOBI scandal wherein an amount of over Rs 8 billion (Rs 8,428 million) was illegally invested. It was routed through the companies owned by the then-EOBI Chairman and deposited first in a private bank and then in benami companies. Tahir acted as a middle man during the entire process.

8. Relevant extracts from the Approver Noman Ahmed (who is also Son in law of the Ex­Chairman EOBI S. Barkatulah) are given below which show how Tahir aided and abetted the crime and also even after leaving EOBI, and at the time when Tahir Mahmood was serving SECP, how he drafted the fake deal which caused deprivation of FIBs ofEOBI:

9. This is very interesting part of the Approver statement where has mentions that it was Tahir Mahmood who drafted this fake deals whereby FIBs amounting Rs 1.04 billion were defrauded.

.... ., .............. ..,.,_.,.,..~ ......... .

10. Considering this confession, Tahir doesn't command the integrity demanded for the person appointed as Chairman SECP. EOBI officials including Former Chairman EOBI Sheikh Barkatullah and other EOBI and Prudential Group officials were indicted by Accountability Court under section 31A of the NAB Ordinance. NAB Website currently contains this case under titled "List of Court cases" TM subsequently joined SECP.

11. Tahir Mehmood said in his confessional statement that: • he was having family relations with Tahir Siddiqui who was then at PCB. • That he was also "in the good books of Sheikh Barkatullah" who formed a money market

intermediary company on the advice of Siddiqui whereas Tahir Mehmood did the company's documentation work required for the registration.

• That he immediately talked to Tahir Siddiqui over the phone and asked for the reason of non-payment of agreed commission" which was done shortly, he narrated in his confessional statement.

• That Sheikh Barkatullah ordered him to ask Tahir Siddiqui to pay the commission in cash. He also received the cash from Tahir Siddiqui on Barkatullah's behalf in all future deals,

• That In 1999, when Tahir was In charge Investment Wing of EOBI, a meeting was held between the key accused and Tahir was also present wherein Siddiqui introduced the concept of security based repo deals through which Sheikh received a commission upto 1.25% per annum. Subsequently, the first deal of Rs600 million was executed with the Prudential Group and he managed all the formalities being Incharge Investment Wing.

• As Tahir rejoined SECP and was made Incharge of Company Registration Office, Karachi, Siddiqui contacted him for the registration of a company (Inter World Securities Limited) but didn't want his ownership disclosed as he was still affiliated with PCB. Tahir did the needful and Siddiqui "thanked me for this favor." In October 1999. Siddiqui desired the registration of yet another benami company (Republic Securities Limited). "Tahir Siddiqui again requested me to keep his name secret as the actual sponsor" and he was obliged.

• In December 1999, Siddiqui left PCB and sought Tahir help for convincing Sheikh to transfer Financial Investment Bonds in PCB to his benami companies and Tahir obliged. A meeting was arranged between the accused wherein Sheikh was convinced to do the needful as PCB was not a safe bet due to its financial health. "The rate of kickback was not discussed in that meeting as it was already decided that on each security based repo, Sheikh Barkatullah would get 1% to 1.25% per annum of the deal," reads Tahir's confessional statement.

12. Concluding Para Last para of Tahir Mahmood's confessional statement is about the benefits he was offered by Siddiqui in return of his aid and abetting and corrupt activities: "In lieu to the services rendered by me to Tahir Siddiqui, he offered at different occasions that once he established himself, he would induct me in his group as employee and also make me a shareholder. Once, he also mentioned that he had made investment of Rs 50 million for me through his brokerage house," his statement reads.

13. Other Officials of EBO were made accused having similar however Tahir Mahmood remained scot free. Haroon Siddiq, Ex DO (Finance & Investment) and Muhammad Salim. Ex- DDO (Investment) EOBI were jailed on the charges that they were negligent in their duties and they failed to safe guard the interest of EOBI by joining hands with accused S. Barkatullah Ex Chairman EOBI. Interestingly Tahir Mehmood was left behind who himself accepted to have aided and abetted S. Barkatullah in his confessions under statements before court.

14. The investigation Report prepared in the Supplementary Reference No. 20/2002 contains the role of accused Haroon Siddiq, Ex DO (Finance & Investment) and Muhammad Salim, Ex­DDO (Investment) EOBI at Page 52 as pasted below:

m). Th .~ ed Haroon Siddiq, the then Director General (Finance & Investment) of e aCCuS •

EOBI · violation of EOBI Investment Rules 1979, Without the approval of the Fede~mGovemment, app~ved the repo de~ls (security-~ased) with RSL and IWSL through Francis X. Pmto Pvt. Ltd., agamst the secunty of a post-dated pay,

d and SBP cheque. Francis X. Pinto Pvt Ltd., is one of the companies or e~ ed by the accused Muhanunad Tahir Siddiqui. The request letters of ~urc ~X. Pinto were directly received by him and got initiated the proposal, and

ranctsed the same in one day. Besides, he also joined hands with S. Barkatul\ah ~ppro:oving the repo deals with PSL and BOC. He being Financial. Advisor of ~o~f did not raise any objection on the above kind of repo deals, wh1ch were not only i~ violation of Investment Rules of the EOBI but also ag~nst th~ .pruden~ · estment procedure of repo deal. Hence he also abused his offictal pos1t1on sue mv . h EOBI R rtedly he has been as public servant, by causmg wrongful loss to t e . epo ' . committed suicide on 24.11.2001.

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.. The accused Muhammad Sali~;·DDG (lnvestment) .E?BI ~ho ~ ~:g~;~~ examine the investment pro~os'al an~ to put up :o~: ~~o~=yr~fairs of Investment Finance Adviso.r and to ~orutor the ;;:s=n~ustJy of securities I certificates Wing and was overall mcharge o . . . . hands with accused S. failed to safe guard the interest . of EOBI by J?trung d DG Finance (F&l)

H Siddique the then Chauman an Barkatullah and aroon tf favourable notes signing the FIBs as EOBI r~sp~ctively, by way ~f I p~i~~~arged as open I bl~nk without mentioning witness whde, the ~arne were. u y b . the accused S. Barkatullah and by not the borrowers names I parttc~lars di: letters to PICL, PDGH, PSL, RSL, IWSL adopting the proper p~oducer o d sen ~to deliver the same to accused Siddique and BOC, rather •. deltve.red an . cau;:ccused S Barkatullah. Had he adopted the Shaikh, Muhammad Sallm PaO:t.an the lette~ through normal procedur.e of procedure of sen~ing. I recetv~ng. the fraud could have been detected and Government Orgamzations I InstitutiOns, the EOBI could have been saved from the losses.

15. This made has been reported in the media as well some links of which are given below:

http: //cim.pk/confessions-of-a-financial-regulator/

https://en.dailypakistan.com.pk/pakistanlsecp-chief-tahir-mahrnood-confesses-involvement­in-multiple-underhanded-dealings/

16. Excerpts from Tahir Mahmood's confessionary statement in EOBI scam are given below:

Furtt)er sfG~temen of Mr. Tahir Mahmood S/o Mr. Muhammad Shafl Late, I ~ A~dltlonai{R~glstr r, Seeurltles & Exchange Commission· of Pakistan (SECP) Ex­

ADG Em~lo'J1ees ld-Age Benefits lnstttutlon (EOBI) ~arochl, R/o D-89/A Beverly Homes Block-7 Clifton Korachl.-1'el: 2415855 (Off.) 5872569 (Res.) NIC. 514-60· · 065201.

..... I state that, I did FCMA in 1984. I joined corporate law au~ority in 1989 as Deputy Registrar in G-18 at Karachi. During this period I acquainted with Tahir Siddiqui, working for Prudential Group and then developed with him very good friendship and family terms. Later I was

~~Jerred to Islamabad CLA on the post of Cost and Management Accountant in G-19 even - t~l' \ my relation with Tahir Siddiqui remained continues. In 1995 I was transferred from CLA to

E<'te.r Karachi on deputation as Director Finance. When I was shift~ back to Karac~i in 1995, at that time Tahir Siddiqui was in an Executive Post in Prudential Commercial Bank Ltd. in EOBI I was in the good books of Sheikh Barkatullah then Chairman EOBI and he soon started assigning his personal work including corporate and taxation matters to me. Specially, I handled the affairs ofNAFKO (Pvt.) Ltd. and Sea Breeze Shipping and Traqmg (Pvt.) Ltd on the instructions ofSB. In both the companies. the relatives of Shaikh Barkatullah were shown to be shareholders/ Directors.

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1998, when I was officiating on behalf of Sher Muhammad, Noman brought the proposal based repo with EOBI by Pakistan Industrial & Commercial Leasing Ltd (PICL) for

400 million. I accordingly put up the same· for approval of the Chairman and the deal was

.... "4" ... "'''""'- in April 1999, when I was Incharge Investment Wing EOBI, Shaikh Barkatullah had a w~:,~::ulJLll. \\ith Tahir Siddiqui at the Shaikh ·sarkatullah residence. I ·was also present in the

•.1,11''"'"'"' .... 1§· In this meeting, Tahir Siddiqui introduced the concept of Security Based Repo deals. and methodology was totally new for both Shaikh Barkatullah and me. After the

1m"'"''P'""'"' arguments of Tahir Siddiqui, Shaikh Barkatullah was convinced to enter into Security ~~~.J~Wu deals with Tahir Siddiqui. Shaikh Barkatullah then inquired about the security ngninst the

delivery of FIBs. Tahir Siddiqui offered post dated Pay Order of PCBL as security, Shaikh Barkatullah accepted. After the above deliberations, Tahir Siddiqui offered Shaikh

1 ~a to 1.25% per annum on each security based deal and after some discussion, Barkntullah agreed.

Sometime in June 1999, when I was working in SECP as Inchargc of Company Registration Office, Karachi, Tahjr Siddiqui contacted me and informed that be wanted to establish a company for himself by the name of lnterworld Securities Limited but as he was doing a job in PCBL, he could not give his name as promoter/ sponsor/ director of the company and be requested me not to disclose any one that this company belonged to him. Tahir Sidcliqui further told me that he would be sending his representative namely Khursbid Anwar to complete the documentation. Accordingly IWSL was incorporated and Tahir Siddiqui thanked me for this favor.

Bdng a close friend, Tahir Siddiqui used to discuss with me bis desire of owning a Stock Exchange Brokerage House. In October 1999, Tahir Siddiqui called me over phone and told me that he has sufficed his desire and he has arranged a Karachi Stock Exchange Membership Card and requested me to help him in incorporation of another company in the name of Republic Securities Um\ted (RSL). 1'abir Siddiqui was very happy on that day as the ownership of a Stock E.-xcbange Card was his old desire. Tahir Sidcliqui again requested me to keep his name secret as t11e actua1 sponsor of RSL and further told me that he had hired the services of retired Bureaucrats f Bankers i.e. Haq Nawaz Akhtar and Humayun Sacliq, who would be the directors of the company. Afterward:i he sent his representativeS. M. Yamin holding the authority ofHnq l'nwaz Akhtar and Huma)-un So.diq tmd Republic S~curities Ltd. was incorporated.

In the month of November 1999. Tahir Siddiqui informed me that he has acquired Francis X. Pinto (P\1.) Ltd. (FXP) and would be sending his representative for the completion of certain formalities for change of its management. Accordingly the management of the company was changed.

In or around December 1999. Tahir Siddiqui met me and disclosed to me that he had aecided to --lt'Jt'<e PCBL nnd to run his own companies more actively. Moreover, he wanted me to help in utff~!.;.ncing Shnikh Barkatullah to switch over the existing security based deals of FlBs of Rs.

1040 \n\\\\.on w\th Prudential Group to his (Tahir Siddiqui) companies namely RSL & IWSL. I agreed to go "ith him to Shaikh Barkatullah.

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The abow-mentioned proposal \Vas not getting through in EOBI because of want of any Brokerage House Guarantee for the switch over of security based deals from Prudential Group to RSL and 1\VSL nnd Tahir Siddiqui had failed to arrange a brokerage houses guarantee. Tariq and Noman Said came to my house to discuss the possibility of using Francis X. Pinto, a company O\\ll~d by Tahir Siddiqui. as the brokerage house. I told them that Francis X. Pinto did not have a mon.:y murk~t brokerage mandate and it was just a foreign exchange brokerage house. But they

I insisted that when they had a complete understanding with Shaikh Barkatullah and they would comp~nsat.: him as per agreed rate. these technical issues should not be raised. Moreover, they \vere of th~ view that no one· in EOBI was competent enough to understand these things. In the same meeting Nomnn was directed by Tariq Siddiqui to handle all the affairs in EOBI and get lhe proposal of IWSL & RSL sent through Francis X. Pinto, being Broker. approved. On the request of Tariq Siddiqui. I drafted the above proposal for getting the same typed on letterhead of the M.'s FXP. Next day Tariq Siddiq\li, Siddique Shaikh and Noman A. Said came to my house and the proposal. which was drafted by me. was got typed by Tariq Siddiqui on the letterhead of

~e~ i,..ifXP. Tariq Siddiqui then delivered this proposal to Noman A. Said for submitting the same t'""f~in EOBI. Later on the proposal was approved by the EOBI and thus, the repo deals security

based were S\\itch.:d over to RSL & IWSL from Prudential Group of companies. At the time of approving the deals. Shaikh Barkatullah was on medical leave and !'vir. Haroon Siddique DO

(F&AI \\~IS orticiating as Chairman EOBI. However. Shaikh Barkatullah gave instructions to Ha!·oon Sid,!iquc in this ro:g!lrd.

The 1-.idd';!.:k ll' Shaikh Bnrbtullah or. the above-mentioned deal was paid in advance in the shape of ~·ush and RTCs. Tahir Siddiqui made this payment in my presence at the residence of Shaikh B~wbtullah. The above kickbacks were of Rs. 13 million in total (RTCs and cash). ~omun A. Said was also paid Rs. 450.0001- in the shape of cash cheque by Tariq Siddiqui.

Around July 2000. Shaikh Barkatullah started calling Tahir Siddiqui for premature termination of the deal:; with RSL and JWSL but Tahir Siddiqui \Vas not paying any heed to Shaikh "' b1ul k\h requests and e,·en started to avoid his calls. Finally, Shaikh Barkatullah called me

, · :.: phone and e.xploined the \vhole situation to me and asked me to arrange a meeting with ;~ :Siddiqui. I called Tahir Siddiqui and asked him to have a meeting with Shaikh Barkatullah. Subsequently this meetin); took place at Shaikh Barkatullah residence \vhere apart from me. Shaikh Bnrbtullah. L1hir Siddiqui and Noman were also present. In this meeting Shaikh Barkntullah was insisting to terminate the deals prematurely while Tahir Siddiqui was arguing o;:~1in.s: this tcnninatiL'n. 1-loweYer. Shaikh Barkntullah asked Tahir Siddiqui if there is no t'lJSSihli::· [,' pr.:m:ltl.::';.' t.!rr.1::1:lte the Wh0~~ deal th::n ;J:!rt of the ceo.! sho\:ld be terminat::c. Th-e meeting wa:; then ended without reaching any conclusion. There after l':oman A. Said telephl'nic:llly com·e~·ed me n message· of Shaikh Barkarullah that if Tahir Siddiqui would not terminate th~ de:.1ls then he (Shaikh Barkamllah) would take action of termination of deals by himsd t. Subsequently. another mo::eting wa~ held at the residence of Shaikh Barkatullah in which Tahir Si,id:.;lli. Shc!kh B::trbmllnh. ;\omn:1 A. Said and myself \\ere preso::nt. Tahir Siddi.1ui tin~1l!~ t\'1.1 th::n :1s he h~1J :tlre:ld~· obto.ino;:,l financing agninst the FIBs. he would not be in, n Pl'$iti·>~~ t•' re1urn ~~~::: FIBs on the pro::m:!turo:: tennination of tb~: deal. However. he rTahir Si,!,!i,:-ti, rl,,Jt~J tbe i-k.t th.1< he ;.m·anged tv route of tho::se deals through a commercial tor.!i:c!n b:1;1!, i.e. B.mk.ot'C.:yk'n tBOCL

Fe'' d.tys bter "·e. ~~~~ ~lh:l\·e participants or' preYious meeting. met again. In this meeting Tahir Si.~~h1 1~ i -:t'nlirmc•d 1::\, ·i: ~~ ~::T.m~d routil~"; of anongement through Bank 0f Ceylon. Shaikh Bark:H~dl:lh elhjuir.:d ~\l','.tl t:\.: se\:urily. \\he :·eupon. Tahir Siddiqui told Shaikh Barkatullah th~t h~! "~h.kl .!I·;·Jn..:...: t'.-.::. r':vc·. BOC ..::~ b: i·. ·t::, u m.:m L.1cre \\ ;·,0 \\vu;J n·.unu~e ail tinan-:i.ti en:.:!:~.!'.::rit~c: . \lr~ 8:.;:·~-:.::t:'.!:!J~~ :1!50 ~:.:·:~ a:\ c·::~i r.e · conten:s \\b!ch the propos:!.! ·:>f BOC shoL:U - - -La:-:-r ,,,: :1 m~etit1!.! ' '· Js h.!lJ in 111\' h~,us..: in ·., hich Tariq Siddiqui. Siddique Shaikh. l'\oman .-\ Said ;~n.t m~s.:lf '~o::r~ pr~ser.t. ln. this meeti1:~ I drafted a letter on behalf of SOC. which got typed n..::-;t ... !Jy by T Jri ... 1 SidJiqui d.timin~ tv ha,·e bec:n typed by his friend in BOC and was l!i' ~:1 ll' :\,,:n~m .·\ . 5;\i,\ f0r t.kliYer; vf th..: 5ame to Shaikh Barbtull:l.h. This proposal \\'~5 ~ddresseJ tl) the Chuinn:m of EOB! on which Shaikh Bnrkatullah objected and phoned me from hi~ r~$:~knt:e thm the prop0:d should be ::~ddr.-ssed to DOG (Investment) EOBl :'\Ir. Salim. As a

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~ ~ n~ "ll\'l'5~11 :1ddressin~ \ lr. So lim was typ.:d by Tariq Siddiqui and delivered the same to l\om~!·. l~'r •'ll\\;11'1.1 .~eli, ·c:r' tv Shaikh Bark null:lh. It was job of the ;\oman A. Said ond Siddiq Lt..! :;h;\i!-:h II .. ' ;;.e: thr~'l;;;.h th.: prq::0sal frL'lH EOBI. Later ?n the deal \\'QS approYed \\l~h the coopcr .. ui,,n Qf "'11..! N. T:1hir Siddi,llli t'ricnds i! BOC and Sho1kh Barkarulloh has been pa1d h1s kickb:1-:k :n the sh;lpt: ,q· L S ~ . Th..: 11C\!~1e L'f hi5 ··riend in SOC is Wnheed .

above deal Tariq Siddiqui paid Rs. 1.5 million in shape of cash of Rs. 1 million and of Rs. 0.5 million to Noman A. Said for his services in getting through the deal smoothly

remember that S. Barkatullnh onc?demanded a gift of four wheeler vehicles from Tahir i during a meeting. Noman and I were also present in that meeting. Later on l

~ompan.aea Tariq Siddiqui to a show room. But Barak~\\ah as~d Noman to imalize selection accordingly jeep was purchased.

from IWSL. RSL and Francis X. Pinto, Tahir Siddiqui established the following l'r'''"""'" through me as I was working as lncharge of Companies Registration Office SECP,

. ln all these companies Tahir Siddiqui wanted to keep his identity as secret as possible.

I. Total Securities Ltd. 2. Univers,!ll Forex (Pvt.) Ltd. 3. Avis International (Pvt.) Ltd. 4. Hospitnl Management (Pvt.) Ltd. 5. Sky Soft (Pvt.) L.td. 6. 'National Debt Management (Pvt.) Ltd. 7. TS Institute of Information Technology. 8. Southern Communication (Pvt.) Ltd. 9. -:-.:ntional Capital Management (Pvt.) Ltd. 10. Progressive Securities (Pvt.) Ltd

• to above Tahir Siddiqui himself informed me in the end of2000, that he has acquired

versa! Lensing Corporation Limited (ULCL). Later on in mid 2001 he informed me that company M's Mercantile Leasing Corporation Limited (fv!LCL) was acquired by him as

the days when scheme of merger I amalgamation of ULCL & MLCL was pending before High Court. he used to frequently discuss this Issue and was very happy on the day when was approved by the Lahore High Court .

. l \ \ . '

lieu Ito tht! s¢rvices rendered by me to Tahir Siddiqui, he offered at different o~casions thnt he established himself. he would induct me in his group as employee and also make me a

r. Once he also mentioned that he had made im·estment of Rs. ~ mi\\i.~ me

his brokemge house. ~i~ . ( . '.f"/.,' ) t FAaeE'UuH1w.J{fi h

INSPECTOR \J/1 };,./ C }_ FlA, CC-1\, CHI - I . ..

1.0. NAB I

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1. NAB INQUIRY INTO ASSETS BEYONG MEANS 1. NAB has reportedly recently started inquiry against Tahir Mahmood, Chairman SECP for

assets beyond means. Copy of the reported compliant is pasted below:

Mr. Arif Ahmad Khan Oct5,2018

Secretar) Finance

rhe Chairman Policy Board

Securities and Exchange Commission of Pakistan

Islamabad

SUBJECT: REFERENCE AGAINST TAHffi MEHMOOD, COMMISSIONER

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN FOR TERMINATION

FROM SECP ON ACCOUNT OF MISCONDUCT AND BREACH OF SECTION 5 OF

SECP ACT, 1997

Through this application, I would like to bring into light the illegal activities of the Tahir

Mehmood, Commissioner, and Securities and Exchange Commission of Pakistan (hereinafter

referred to as the "SECP").

Tahir Mehmood, belonged from a very humble background, a son of a junior Police Clerk

joined SECP in the year 1993 as Deputy Registrar at Islamabad. At that time Tahir Mehmood used

to possess only a motorcycle that too, a second hand/used one, for commuting purposes and

probably sole valuable possession. Since he lacked resources, he was given to the board and

logging by one of his friends working for OGDCL at that time. For quite some time he put up "'1th

him until he was able to get affordable accommodation. Tahir Mahmood's luck took a tum when

he was promoted to Joint Director and sent to Karachi Corporate Office (CRO) where he rose to

be in charge of the office .

During his coveted posting at Karachi, Tahir Mahmood life suddenly starts to t:hangc. I le

misused his authority and gave huge illegal monetary benefits to the corrupt business tycoons of

the Karachi and minted money in the process at the cost of investors and the general public. He

got involved in many criminal cases during his career and many complaints surfaced during his

tenure, but each time due to his nexus of evil and corrupt mafia, he was able to save himself from

prosecution.

Tahir Mehmood, has miserably failed in fulfilling a particular commitment ensuring that

public officials entrusted with public resources do not abuse and the influence accruing from their

offices, for personal gain. The facts in precision necessary for understanding the lllegal

appointment of Tahir Mahmood as Commissioner, SECP through deceit, blackmailing and

backstabbing. Mr. Tahir Mehmood firstly accumulates evidence, manufacturing documents and

forging cases against the important business and political personalities. Later he creates a false

pretense of helping such person from difficult situations, created by him in the first place, through

purposely defective mechanism so that when the time is ripe exposing the same person by sharing

information to the political adversaries and business competitors to gain illegal benefits. On each

stage, he unfortunately takes advantage of such person in power by deceit; blackmail and

backstabbing to keep his grip on the SECP to elongate his scheme of accumulate illegal gains.

Although there are, many examples, just to elaborate few, will suffice. His removal will unearth

my startling stories of gross misuse of powers and illegal activities for personal gains.

It is not surprising that he is able to get himself a third time Commissioner in blatant

violation of the process of law, mainly, for his services rendered in CSML and other ventures at

the behest of Minister Ishaq Dar.

In the case ofCSMlL as well, as mentioned, Tahir Mahmood first initiates the proceeding

at the instance ofPPP govt. (proved from his statement to FIA) which appointed him and fictitious

file was made relating to money laundering to procure information. Later, when PML (N) won the

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general election, secretly same file was closed. (Copy of the fictitious letter tht·ough which

Chaudhry Sugar Mill Investigation was illegally closed and other related documents are

attached as Annexure-A)

This time too, he was able to save from criminal prosecution illegally by apportioning

blame and stifling investigation, especially in closure of file relating to money laundering and

fictitiously taking back request of assistance from UK authority and cleverly shifted the entire

focus on the different file of closure on back dated file relation to an investigation under the

company law despite clear cut recommendation of the J IT in this respect. Tahir Mehmood is not

only found guilty by the JIT, but also confessed to his participation in the forgery and carrying out

illegal order got recorded a confessional statement before the magistrate wherein he has accepted

his guilt along with other persons of playing active role in the tampering case. (Copy of the

Confessional Statement of Tahir Mehmood is attached as Annexure-B)

The JJT formulated by the Honourable Supreme Court of Pakistan to investigate the

Panama issue while recording its observation in the final report gave following findings

reproduced for the ease of reference:-

'·e. the irregular closing of said case in backdates is a misconduct on parr

of Mr. Za.far-ui-Haq Hijazi (Chairman, SECP), Mr. Ali Azeem lkram (Executive

Director/HOD) and Mr. Abid Hussain ( Executive Director/ HOD) and Abid

Hussain ( Execwive Director/ HOD), inspired by mala .fide intent. There is also

need to investigate the role of Mr. Tahir Mahmood (Commissioner) ill this

a(ft~irs.

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f Mr. Abid Hussain and Ms. Maheen Fatima had a meeting prior to

appearing before the JJT. as stated by them. Prima facie, they were tutored to

conceal truth and present manipulated facts, especially on Chaudhry Sugar Mills

case.

3. Conclusive Findings:

a. Ms. Maheen Fatima is dicey character. who confessed to have opened a fictitious

case on flimsy ground against Chaudhry Sygar Mills in 2011 on the instr11ctions o(Mr. Ali

Azeem lkram . under influence ofthen Chairman SECP.

/;L_The circumstantial evidence also indicaTes that, during 2016. she maliciously

closed said case in back dated (i.e. 8 July 201 3) again under the influence ; this rime by

the incumbent Chairman SECP. This besides reflecting the character of Ms. Maheen

Fatima, Ali Azeem !kram, Mr. Hijazi (Chairman SECP) and few others, also mirrors the

fact that the instruction is extremely politicized. ·· (Copies of the Analysis of JIT

Statements accusing Tahir arc attached as Annexure-C)

Since the matter is of a serious nature and requires formation of Joint Investigation Team

(JTT) under section 258 of the Companies Act, 20 I 7 for offences of serious fraud and other

regulatory matters cognizable under the Companies Act, 20 I 7 and other administered legislation

against CSMIL and also determine the role of Mr. Tahir Mahmood and other accomplices. In fact

Mr. Tahir Mahmood along with enforcement department officers, which have nominated have

been dominating the enforcement department of the Commission and managing its affairs for a

decade now and many more startling revelation regarding illegal actions of the corporate sector

8

tycoons including politicians will be unearth, once they are removed from the power structure of

the Commission. Only two officers are being made scapegoats, whereas, Mr. Tahir Mahmood,

who has orchestrated the entire scheme to benefit Sharif Family to remain to Acting Chairman and

secure a third term as Commissioner SECP illegally.

The Commission was under their control of Tahir Mahmood and Zafar Abdullah and no

positive development has taken place and they have been able to push things under the carpet. Mr.

Tahir Mehrnood is directly linked with the CSML matter as he had very close nexus with the

representative ofCSMIL

Tahir despite being nominated as the main architect of the scheme in CSMIL case, continue

to occupy the position and draw a huge monthly salary of at least two million per month along

with perks and privileges and third time appointment as the Commissioner that he enjoyed,

ostensibly as the reward for his services.

Undoubtedly, the first test of 'known integrity' required for a post of Commissioner is

utterly lost and on this score alone, he should have been removed from the post by the Ministry

but due to his connections, everyone kept mum and look the other way. It may also be mentioned

that in many other administrative matters also, he has also now claimed coercion into making

certain decisions while he was enjoying the absolute statutory protection of tenure from removal

and kept enjoying the hefty perks and privileges and reappointment and other favors from the

government.

The whole Commission has turned into personal fiefdom, regrettably, which has been the case

throughout the Commission existence, barring first few years of its inception. The loyalist of the

two Commissioners, Mr. Zafar Abdullah and Tahir Mahmood are being rewarded through good

9

appraisals, postings and foreign and local visits. Anyone falling out of favor is targeted through

abrupt transfers and reorganizations. Even officers who were selected to assist the JIT team faced

extreme pressure by erratic postings and transfers. Even so much so, Mr. Bilal Rasool, Executive

Director one of the members of the JIT has to face this dilenuna of abrupt transfers and portfolio

changes to give maximum mental anguish and send message to another officer to keep in line.

It is therefore, requested to take immediate action against Tahir Mahmood and investigate his

illegal actions and huge accumulated wealth beyond his known resources should be immediately

confiscated and order the Finan.ce Ministry to remove him from his post of Commissioner, SECP

and take necessary action against all those who are involved in supporting of his illegal activities.

PRAYER

Based on aforementioned fact, following submissions are humbly requested to initiate

investigation against Tahir Mehmood;

I. It is also requested to initiate. Reference against the removal of Tahir from the

Commissionership of SECP as he has miserably failed in discharging his duties as per the

dictates of SECP ACT, 1997. Furthermore, it is also prayed that Tahir Mehmood may be

restricted from attending Commission meeting due to conflict of interest being the subject

accused in JlT report.

2. Tahir expenditures on his spouse, Children and their weddings subsequently irrefutably

and conclusively in the presence of instances of misuse of authority establishes this fact

10

11

that he has gained and accumulated his wealth through corruption and corrupt practices

and his wealth is nothing but a proceeds of crimes. It is also requested to place the name of

Tahir and his associates in crimes along with their spouses and children on ECL. It is also

requested to initiate proceedings against Tahir Mehmood for appraisal of his true wealth

and income as he has concealed in his tax returns the true state of affairs. lt is a matter of

pity that the top management person of a financial institution is making mockery of the

system.

Ch Nasar Hussain S/o Muhammad Yar

Rio Freed Colony Chongi Amcr Sadu Jail, Labore

CNIC: 34302-3768173-7

For Information and Necessary Action:

I. Honourable Monitoring Judge of Panama Bench of the Supreme Court of Pakistan

2. Chairman SECP

3. Secretary to the Commission and Policy Board of SECP

4. Members to Policy Board of SECP

5. Chairman national Accountability Bureau

n. HAMPERING OF IMPLEMETAION OF PANAMA JIT RECOMMENDATIONS

2. JIT Report clearly recommended that role of Tahir Mahmood be further investigated into the illegal closure of money laundering investigation against Chaudhry Sugar Mills. Tahir Mahmood was the one under his tenure as Acting Chairman SECP, letters written to UK

I. authorities for legal assistance were recalled. SECP communication with UK authorities m 2013 are attached below:

g . • ·, ,.

No: CLD/EMD/201 11144- lb·:

MS. JACQUEt.lNB STAVELEY UNITED KINODOM CENTRAL AUTHORJTY JUDICIALCO-OPBRATION UNIT 57

" FLOOR, ERY BUILDING 2 MARSHAM STRE~T LONDON SW I P 4DF UNITED KINGDOM

Jlv Couriq

July 22, 20 13

Rll:: LfL'ITER Of! RltOUF.ST- \NY1kSDGATlON INTO SVSl'ECJ'ED !!RAUDUL:ENTTMNSACTIONS

Dear Madam ,

Please refer to your Jetter Ref. No. MLIE02012PAKI51053 dllted May 15, 2013 regard ing legal assistance rcquesb:>d to UK Central Authority iu Augmrt 20 II .

2 . In thb resard, 1 am directed to lnform you that no further uaiatanoc ftom UK Central Authority Is required, therefore, the request forwarded to you ma.y please be~ considered withdrawn.

~~· MAHBEN FATIMA DIRBCTOR (BNFOR.CE.MENn

5ECUI11TtES & EXCHANGE COMMISSIOtJ ClF PMISTAI'I •' j

I I

'Ms "Mah.eeri: Fatima Dlr.ePtot .EntQtcement · :Secdrltles.'arid Exchange Commls~lon of p·a~Man NIC. Bulidlng 63.Jlnnah Avenua

··~lal"''''~bad : Pal<lstSn

Our ref: MLIE02012PAKi 51053

Date: 26 JUly 2012

.REQUEST FOR MUtuAL LEGru. ~ssiST~Ce REG~ROl~G ·HA~'SAn 'NAWAZ'SHAruF ~NDOrfi~'R.S . · . : · . · . · · . .·

Dear Ms F.atlrna

I write. II) refatlon to yotJ~.letter of·1 AtJgUS\. .'2Q1. 'f. ~qu'estin¥t, i!Ssls.tance :from ·the UK In .ybul' 'lnv.estrg.atlbn Into tnon~ l~t;IJ1$1;11J~ 1h~oagf.l: Cna:udl:lJY .SlJQN. Mills. 1 apo1oglse for the le'I")Qth eftlme I~ hM ta.k.~O.t9•eonta~'yQt4:ebqtit thls·requast.

' I .

Berore· th~ UK Centrcii.Auihorlty .o~ct 89C~P\. ti:Je. req~ef)r.~~ "ttlll n~ed some further lpfoi'01f;lijon. I would be ,gratefi:JJ 'lf.Y,b~ coula·answer Urei fQIIoWin~questlons:

. .

1 •. .P~asa. contlrm the.le_gat basff}·u.p.~nwhlG.trih.D ·SEeP I~ empQWe.~d:to make r~ue~t~ tot. assistance ln. obtalhlfl!J ev~ehfie· In ·eonnebtlon WJlh -9rlr:t1lnal lnvestlgatroflS pr pl'bCI3Et~.nQ~ l:Jh®ftJI( la.w:'i{i& c.an only· aqc~p\ r~glla~ts from.a~thor!tles that ~:tr~ etnl?~~t~d' to m~ke. su~h re~ues~ '

2, Ploee" oonnrrtl tho nature .of. fbe Jiil'ilest(~afl'lln ,YQu'·ar~ Qti,n~UQtlntJ. ·If 1~ ls EJ ~~~ lnves~gation·, ·pll'\as~ provll\le. ¢.RJ~.;r·ot ltle- . l~gaJ. cle:f@ti9J1 ~f the offence ancl tl),e pf!naiU~. 1f It rs. an .~drhJi;iiSttauv~ 1rw&&qgatl6.rl. please provlde copies- of' !he laws. >Or teguratJons alle,9e.d to hav~ 'been bl'f!ari!lfXl and tpe p,enaltlesa · · · ·

3, Plee..se co.nflrm whethe'F a F£r:st lhformatlon R.epo11·has been lod~ed. · 4. Pleas-e provide a full ·factual s~mmary pf .tha pffences or acts under

lnvestlgatlon. _

·~--,~ ~"'•ufl!l . frector , •. , end E.•• h 1 •U•"!'''~>ar ... c Bllg · • · .. : ,Or'l .Pf. Rakl;,, __

-. ··-

5. In relation to the .two ~pectflc trahsaoil0ns that v.ou ask-us to "prgbe•, pleasa 'provJde full details 9f thE:~ da\EJS .of the tlqf19PCflo'!'ls.. the bank ·actoonts con'C~rned and the lnforro.E\\T~;>.n:tha.~Y.<::!\1 taq!Jrre.

6. P1ease· explaiR wi'fY the lhfoJ'matltm' t9ql1~~tep rs. .r~~~ant tQ the o~ences or acts tmder Investigation. .

7, Plsa.se e~plaln 1he pu·!'Po.:s~ fOt 'Mlfel}:.the rnqJJristernnformalfan wlD ,Pe used.

Wlthallt this lnfarma~Qn we. wUI be ~~fe,.tl'l: abt(\1~ w~· Tti{ol'l'oatlon tliat -rou lt.;lve reque~~fld'~ You may stll[ b~ al)le to obtan,; tt-le ~®te, lrtformatron thrQl!Qhlnfmrmal taw enlorcetnant CO;rOperat1C1n .cl'l~nnl31& so.ch as 'ln!srpo( . . HQWevet. l;lr~ase .note fhat the .UK does not' mai('ltaln a~y '9~n\T.ar fe~.¢t'erl?' of ban~ ~ceot:tht& ·O'I: uther assets. tnerefoF~ It will nd~ be poss1bltl !b glve :x.o.u. s 'cb'nipJet~ lis( of .as&~~s fl~d · by 1:m1 c6m,pany or lndtvldual.

Yours pthoeY!9ly,

NTOKV.AMbS Head of U.K-Gent~l A~thori~

Cortifled Tn.te Cogy

' •Adnan S . . oint Olrector

acunues anct Ex Cornrmssrorrot P~r,::;:e

•~lamabad n

I i

f

~i~ l ~~t .~ .. .....

sF.-:: r·

No:· ~MDfl.42/LJ21312011- I).. t I

Ms. Jacqueline Staveley UK Central Authority Judicial Co-operation Unit Sa. Floor, Fry Bulldlne Z Maraham Street London

A7"

Re: Request for kg•! tWistanse- Hamn Nawu Sharif and Othe[J

Dear Madam,

/ly Courf«r

May 21,2013

Please refe1· to your letter Ref. No.-"MLlB02012PAKI510SJ -dated May IS, 2013 regarding · legal assistance requested to UK Central Authority in August 2011.

2. In this regard, we are pleased. to i!)form you that no further assistance from UK Central Au!Jlority is required, th.ereforc, tho request forwarded to you may please be considered withdrawn.

· '-~o.~tuu~~va t ' ~-~

Director (Enforcement)

Ad nan t Director

Securities and Exchange Commrsslon of Pakistan

t~f~m;~bari

! ''

;··

SECURITIES & EXCHANGE COMMISSION oF PAKISTAN NIC Bulldlng. 63 Jlnnah Avenue, Islamabad, Pal<Utarr · • .• ·.

.,.

! '

!) ,,

2. Tahir has made confession to have played role in illegal closure of Chaudhry sugar mill case.

1. The deeper analysis of the complete JIT report and its findings specifically relating to Money Laundering investigation under taken by the SECP in the matter of Chaudhry Sugar Mills Private Limited revealed mainly two sets of recommendations pertaining to :-i) Opening of investigation against Chaudhry Sugar Mills Private Limited (CSML)

ii) Alleged Misconduct committed by SECP Officers. JIT further recommended that role of Mr. Tahir Mahmood (Acting Chairman) needs to be further investigated.

(a) Analysis of Statement ofMs. Maheen Fatima (page 72 and 73 Volume II)

e. the irregular closing of said case in backdates is a misconduct .. . .. .. inspired bv mala fide intent. There is also need to investigate the role of Mr. Tahir Mahmood (Commissioner) in these affairs.

2. On August 8, 2017 Special Judge Central Court Islamabad while deciding bail petition filed by Zafar Ul Haq Hijazi stated that:

"At this stage a deeper appreciation of evidence cannot be given, however, tentative look at above evidence shows that the closure note of back date was made after meetings, full discussions amongst Ms Maheen Fatima, Tariq Ahmed, Ali Azeem Ikram, Tahir Mehmood and Abid Hussain, as these persons also signed the same likewise accused accused/ applicant. All of them are sailors of same boat. Other than statements of officers who signed the same alleged closure note in back date, independent corroborative piece of evidence is needed. It is yet to be ascertained that either such alleged undue influence and pressure was made by accused/ applicant or said closure note was made with consensus, which needs consideration and makes it a case of further inquiry."

3. On August 16,2017 Tahir Mahmood got recorded his statement under Section 164 Cr.P.C.. a confessional statement before a magistrate.

4. Unfortunately, despite serious conflict of interest, Mr. Tahir Mahmood continues to control proceedings of 'Show Cause' notices against Ms. Maheen Fatima and Ali Azeem, whereas from the statements recorded by both the officers, specifically points out that they acted on the direct instructions of Mr. Tahir Mahmood to close investigation file in back date.

5. Furthermore, as apparent from the JIT report, the Money Laundering file was closed in May 21, 2013 and consequently request to UK authorities was recalled, despite unsatisfactor) replies from the company. Regrettably, despite lapse of considerable period of more than one year, no concrete step could be taken due to mala fide intention and involvement of senior management of the Commission namely Tahir Mahmood, who now controls the SECP

6. Till date SECP has not done much to proceed in the CSML case. Mr. Tahir Mahmood has been closely aligned with the Mr. Isaq Dar and remained Acting Chairman, SECP for \ery reason that he closed this mega case in infancy in May 2013. He was again appointed

through exceptional favour for the third time as a Commissioner, SECP on hefty salary by Mr. Ishaq Dar who was the Finance Minister at that time. Tahir Mahmood is the only Commissioner in the history of SECP since its establishment in year 1999 to get third term that too through orchestrated and flimsy process, which needs to be investigated.

7. All officers who have been directly involved in the fabricated closure of investigation against CSML under section 263 of the Companies Ordinance, 1984 in year 2016 in back date and illegal closure of the Money Laundering investigation file in year 2013 through letter dated May 21, 2013 remains in firm control of SECP. This is despite the fact that SECP was bound to generate suspicious transaction report (STR) under the AML Act, 2010 and could have obtained requisite information from UK authorities or by use of international bilateral arrangement such as IOSCO. Unfortunately, letter dated July 25, 2012 by UK Central Authority was never responded and unilaterally withdrawn through letter dated May 21 st. 2013. Although NAB has under taken investigations relating to NAO, 1999 as ordered by the Honourable Supreme Court against Sharif Family but no real investigation under the AML Act, 2010 and Companies law and other administered legislation of SECP has taken place to unearth proceeds of crime which is essential to bring charges of under AML Act. In case these officers had not closed proceedings and withdrew letter dated May 21, 2013 illegally, investigation in the PANAMA paper may not have been required. The letter specifically request from UK Authorities specific information relating to properties of Mr. Hasan Nawaz including investments in Flag Ship Investment Limited, Que Holding Limited, Quint Paddington limited and any Money Laundering transactions, list of assets etc.

2 ?J

e. The 'irregular closing of said case in backdates' is a misconduct on part of Mr .

. -Za.far-ul-Raq-Hijei-{Gha.ir-mru1-SEGF-);-M.r.--Ali-Azeem-Ikmm-{Exeeutive­

Director/HOD), Ms Maheen Fatima (Executive Director/ HOD) and Mr. Abid

Hussain (Executive Director/ HOD), inspired by malafide intent. There is also a

need to investigate the role of Mr. Tahir Mahmood (Commissioner) in this affair.

f. Mr: Abid Hussain and Ms. Maheen Fatima had a meeting prior to appearing

before tb.e JIT, as stated by them. Prima facie, they were tutored to conceal truth

and present manipulated facts, especially on Chaudhry Sugar Mills Case.

(W AJID ZIA) PSP I Head of .nT

SECRET

The matter has been reported in media. Link given below:

(AMERAZIZ)

https://en.dailypakistan.com.pk/pakistan/secp-chief-tahir-mahmood-evades-probe-despite­panama-jits-findings/