PTI and APML raised billions of rupees in US
ISLAMABAD: At least four Pakistani political parties formed firms in the US to finance their campaigns where two of them raised funds worth billions of rupees in recent years, revealed official documents.
These parties – Pakistan Tehreek-e-Insaf (PTI), All Pakistan Muslim League (APML), Pakistan People’s Party (PPP) and Muttahida Qaumi Movement (MQM) – have formed firms in the US in a move either to raise donations/ funds or to run their campaigns, revealed the documents.
The parties, however, neither disclosed these firms in their latest annual statements 2015-16 nor in the past, (PakSword: Wrong Statement regarding PTI) which is apparently a clear violation of Section 6 and 13 of the Political Parties Order, 2002 (PPO). It categorically states: “Accepting foreign funds through domestically incorporated public or private firms by parties is prohibited.”
Chapter-II of the PPO 2002 reads: “Any contribution made, directly or indirectly, by any foreign government, multinational or
domestically incorporated public or private company (PakSword: This is the real problem), firm, trade or professional association shall be prohibited – contributions or donations, as the case may be, accepted by political parties are prohibited under clause (3) of Article 6.”
The PTI, MQM, APML and PPP are perhaps only political entities which under Foreign Agents Registration Act, 1938 got their firms registered with Department of Justice (DoJ) in the US where total 399 active firms are listed presently.
The PTI received the latest tranche of funds/contributions worth $117,000 on April 30, 2017, revealed the documents submitted with the (DoJ). The Supreme Court and the Election Commission of Pakistan (ECP) asked simultaneously for hearing miscellaneous petitions against the PTI because it allegedly continues to raise donations/ funds through firms and individuals from the US since Feb 2010. The PTI received funds worth some $3.5 million through its foreign accounts since 2010, documents continued to reveal, also this correspondent had access to.
The purpose of collecting such funds was to help the PTI establish genuine democracy in Pakistan.
Mohammad N Khan, a US national (PakSword: foreign national with mashkook hubbulwatni), formed a company, PTI US LLC, (Registration Number 5975) in 2010 which raised $2.344 million from Feb 2010 to June 2013. And then PTI formed a new firm (Registration Number 6160) in 2013 which raised around $850,000 till April 2017 and practice goes on.
The PTI Pakistan received funds $190,000 in 2011, documents revealed that party raised funds worth some $775,000 in June 2012 and then another tranche worth $284,000 collected through this firm in December 2012. Party received $627,610 in June 2013 and $384,000, $165,000 and $30,000 also received into its foreign account till December 2013.
Contributions/ funds worth $90,000 were received by PTI Pakistan through its central bank account in 2014.
Aftab Shah, an American citizen and Ali Asim Khan, a Canadian citizen (PakSword: foreign nationals with mashkook hubbulwatni), raised these funds.
The PTI US-LLC raised $401,956 but transferred $305,000 to Pakistan in April 2015 and $75,000 were transferred to PTI in October 2016.
Mr Sajjad Burki, a US citizen, who is President of PTI USA LLC California, Faisal Irshad, a US citizen (PakSword: foreign nationals with mashkook hubbulwatni) and Kaleem Syed, a Pakistani national were part of this campaign.
PTI Secretary General Jahangir Tareen says,
“According to US laws, it’s only legal to collect donations though FARA, 1938 registered firm — therefore, it’s only legal way to collect donations. These are not really companies but donation collection vehicles — yes these are special purpose companies set up by the PTI. Their only purpose is to channel donations as does the US laws." (PakSword: describes why it was required to set up the firms to collect donations)
Under the PPO 2002, every political party is obligated to disclose the source of funds/donations, observed senior lawyer Ali Zafar. Election laws allow accepting donations from individual including foreign nationals, Mr Zafar said. A party can create firms to raise funds if it discloses the source of income, Mr Zafar said. But in the case of PTI, he added: “PTI could form a firm under US laws for raising donations but collected amount must be disclosed in its annual declarations submitted with ECP.”
@Farah Sohail
