Broadsheet to seize Pakistani assets after it fails to pay $2.2 million

Move came after the company failed to get a reply from the country regarding the recovery of nearly $2.2 million.

The Broadsheet LLC company has instructed its lawyers at Crowell and Moring LLP to initiate new proceedings so that it can seize Pakistani assets after the company failed to get a reply from the country regarding the recovery of nearly USD 2.2 million.

Geo News reported that Broadsheet's CEO Kaveh Mousavi has instructed his lawyers at Crowell and Morning to initiate the assets-seizure operation after previously successfully seizing Pakistani assets through the orders of the London High Court.

The company's lawyers have informed that the decision was taken after law firm Allen and Overy failed to engage with Broadsheet despite giving assurances on February 1 that Pakistan desires "to resolve the matter without the need for further enforcement action," but failing to confirm further whether it had the instructions to deal with the matter or not.

"Our client has instructed us to seize further assets to satisfy the sums due to it on the outstanding judgments," Broadsheet has said in a letter to Pakistan.

Meanwhile, a source at the National Accountability Bureau (NAB) said that Pakistan has received correspondence regarding the latest developments and the matter is currently under review, reported Geo News.

"With respect, we refer you simply to the dates of the outstanding judgments. We need say no more. Please, don't suggest that your client has not had time to deal with this situation as frankly, that is simply untrue. We will refer the court to the 18 letters that we wrote to you and to your client without response on this very issue and leave the court to draw its own conclusions," said Crowell & Moring LLP in its letter.

The Broadsheet LLC, based in the Isle of Man, was hired by the NAB during Musharraf's regime to trace out hidden assets of Pakistanis in foreign countries. The NAB signed an agreement with the Broadsheet but terminated it in 2003.

The scandal proved that Pakistan has been plagued by corruption. Instead of targeting the corrupt, the Broadsheet was used for political gains and safe passage was given to the corrupt people to escape accountability through National Reconciliation Ordinance (NRO).

In March 2019, the London Court of International Arbitration (LCIA) gave a USD 20 million final award in the Broadsheet case. However, the NAB/Imran-led government did not pay that amount and due to interest, the award amount rose to USD 28.7 million by December 2020.

Less than a month ago, Broadsheet asked Pakistan to pay USD 1,180,799 in respect of further interest owed by Pakistan on judgment debts, accrued after the issue of Broadsheet's third-party debt order on partial payment by funds received from United National Bank on 31 December 2020, reported Geo News.

The company also asked Pakistan to pay USD 40,677 which was the balance of the judgment debt remaining unsatisfied, USD 5,889 interest accrued on the balance of the judgment debt being and continuing to accrue at the daily rate of USD 267.72 and Broadsheet's enforcement cost currently standing at around USD 800,00.

Last month, Geo News also reported that a London court had ruled that the NAB knowingly 'conspired' to financially harm Broadsheet LLC by entering into a settlement agreement with an unauthorised individual and paid around 1.5 million dollars to his fake firm.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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