StAR - Stolen Asset Recovery Initiative - Corruption Cases - Asif Ali Zardari / Benazir Bhutto (DAGRAL accounts)

10/18/12 1:28 AM

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Asif Ali Zardari / Benazir Bhutto (DAGRAL accounts)

Case Control Number: Description : 142

In 1998, a case was filed before the Ehtesab Bench of the Lahore High Court praying that Benazir Bhutto, ex-Prime Minister and her husband, Asif Ali Zardari in collusion with others obtained illegal gratification and undue pecuniary advantage in the form of commissions and kickbacks in the purchase of URSUS tractors from Poland. Allegedly, the file establishes beyond any doubt that these commissions, under the cover of alleged "consultancy fees" were meant to remunerate the illicit advantages obtained by URSUS from the Pakistan administration due to the interventions of Asif Zardari. On November 24, 2003, Investigating Magistrate of the Canton of Geneva, Christine Junod, ordered that $2,390,133 held by Dargal Associate SA of Virgin Islands in a Geneva Bank, Cantrade Ormond Burrus Banque Private SA (currently, Ferrier Lullinet Cie SA), be transferred to Pakistan. Dargal was incorporated only on June 14, 1994 and was represented by Jens Schlegelmilch and his partner, attorney Didier Plantin. They opened a bank account in December 1994, with Amer Lodhi as the alleged beneficial owner. It was alleged that from January 1995 to March 1996, Dargal had been used to collect and partially to redistribute almost $2,400,000 of commission collected on the sale of tractors to the Agricultural Development Bank of Pakistan (ADB) under a programme to assist small farmers. The Polish company ZPC URSUS Traktorzystew (ZPC Ursus) had been awarded a contract for the supply of 8,000 tractors of the model Ursus 2812 without any public tenders. Two invoices dated February 27, 1995, had been found, and addressed by Dargal to ZPC Ursus over the signature of Schlegelmilch, for $1,473,260 and $345,579 as "consulting and promotional fees" in relation to the sale of 6,000 tractors to the Agricultural Development Bank.

Type of Illicit activity involving Public Official :

Bribery

Impediments to investigation:

Unk

Most recent legal action against Public Official?: Other legal action/ other prosecutions:

Unk

Region: Country of Public Official: Sources:

SAR Pakistan Bhutto/Zardari case study by the International Center for Asset Recovery,
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http://star.worldbank.org/corruption-cases/node/18730

StAR - Stolen Asset Recovery Initiative - Corruption Cases - Asif Ali Zardari / Benazir Bhutto (DAGRAL accounts)

10/18/12 1:28 AM

including "Swiss Court orders to restitute $ 2.4 M seized from DARGAL Associated SA" accessed at http://www.assetrecovery.org/kc/node/a355ab53-3580-11de-96271d322f879051.4 National Accountability Bureau of Pakistan press release, "Swiss court to hear BB's appeal in money laundering case on 04 November," Nov. 3, 2003 Bhutto/Zardari case study by the International Center for Asset Recovery, including "Judgment of Swiss magistrate in SGS, Cotecna case," accessed at http://www.assetrecovery.org/kc/node/2fb39f425114-11de-bacd-a7d8a60b2a36.8 "Swiss drop charges against Bhutto's widower." Swissinfo.ch, Aug. 25, 2008, at

http://www.swissinfo.ch/eng/politics/foreign_affairs/Swiss_drop_charges_against_B cid=6877842 Carver, Jeremy. "Box 6.6: The hunt for looted state assets: the case of Benazir Bhutto." Case study in Transparency International Global Corruption Report 2004 at 102, accessed at http://www.transparency.cz/pdf/publikace/ti_gcr_2004.pdf "Pakistan asks

Swiss to reopen Zardari probe." Mar. 31, 2010, accessed at http://www.swissinfo.ch/eng/politics/Pakistan_asks_Swiss_to_reopen_Zardari_prob cid=8590418) Position of Public Official during scheme: Prime Minister (Bhutto) Member of the National Assembly, Senate, Federal Minister (Zardari) Is there a pending case or appeals?: UNCAC Articles(s) Implicated: No Art. 16 Art. 23 Money laundering Implicated?: Yes 1995

Year scheme began:

http://star.worldbank.org/corruption-cases/node/18730

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