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Corruption in Agosta 90 Deal : Sarakozi & Zardari

Around 2 millions lost their lives during partition of India and creation of Pakistan in 1947. Thereafter hundreds of soldiers have lost their lives while defending Pakistan. If the corruption scandals in defence purchases are true, which seems to be so its most unfortunate. The corrupt people are getting wealthy at the cost of blood of millions of innocent patriotic Pakistanis. .......... If Mr.Zardari is innocent he must conduct an independent inquiry to clear himself from this serious allegation !
Asif Ali Zardari is blamed to have looted Millions of Dollars of Bribes Paid to him in French Submarines Corruption Deal  Pakistan's Zardari 'Pocketed Millions' in French Subs Deal By Michael Streeter, Graham Tearse, Fabrice Arfi and Fabrice Lhomme Paris, France, 13 January 2011 (MediaPart) - Official Pakistani documents detailing how the country's president, Asif Ali Zardari, benefited from massive, secret payments connected to the sale of French submarines to Pakistan have been seized as evidence by a Paris magistrate investigating a suspected widespread scam surrounding the deal. The documents, revealed here for the first time by Media Part, show that the payments to Zardari and others took place on the fringes of the sale of three Agosta-class submarines by the French defence contractor, the DCN, to Pakistan in the 1990s. The French sale succeeded against rival offers by Swedish and German contractors.
The sale, and the payment of bribes associated with it - officially termed as commissions - are at the core of what has become known as the 'Karachi Affair', currently the subject of two French judicial investigations and which has rocked the French political establishment  with its potential far-reaching ramifications within France. A key allegation in the developing affair is that the cancellation of commissions paid out in the submarine deal was the motive behind a  'suicide' bomb attack in Karachi on May 8th, 2002, that left 11 French engineers dead. They were in Pakistan to help build one of the Agosta submarines.

Increasing evidence suggests that cancellation of the commissions, ordered by former French President Jacques Chirac, was decided after it was discovered they were in part re-routed back to France to fund political activities of Chirac's principal political rival, Edouard Balladur.

The documents, now in possession of Paris-based judge Renaud Van Ruymbeke, were found during a French police search in June 2010 of the home of Amir Lodhi, one of the intermediaries involved in securing the Agosta contract. Lodhi held a copy of a report by a Pakistani anti-corruption service, the Ehtesab [Accountability] Cell.
Lodhi, 61, the brother of a former Pakistani ambassador to the United States [Maleeha Lodhi], is a close friend of Zardari, who [illegally] became president of Pakistan in 2008 one year after the assassination of his wife, Benazir Bhutto.
The raid on Lodhi's home in the French capital [Paris] was carried out by detectives from the French police national financial investigation division, the DNIF, (Division nationale des investigations financiers). The Ehtesab Cell documents were the object of a formal report by the DNIF, established on June 17th, 2010, and reveals that Zardari received backhanders worth 6,934,296 euros between October and December 1994. That report is now among the evidence collected by Van Ruymbeke in his investigations launched last autumn into the financial aspect of the Agosta submarine sale, and in particular whether commissions paid abroad were re-routed to fund political activities within France.

Originally written in English, the Pakistani document was translated by the DNIF investigators and now provides the first clear details about the scale of the payments made to Zardari, amounting to several million euros, as well as the channels used, including offshore companies, bank accounts and a British tax haven.

Bank Transfers to the Virgin Islands.The Agosta submarine contract was signed between the two countries [France and Pakistan] on September 21st, 1994, just weeks before the first payments began.

At the time, Zardari was a minister in the Pakistani government then led by his wife, [corrupt] Prime Minister Benazir Bhutto. Importantly, Zardari was the key figure for all public contracts signed with foreign countries. That position earned Zardari the unflattering nickname in his own country of "Mister 10%".

The main document seized by French investigators is a photocopy of an original dated November 9th, 1997, concerning a request by Pakistan to Switzerland for cooperation in a judicial investigation.

The request by the Pakistani authorities to Switzerland aimed, according to the officer, "to obtain all the necessary information to pursue a criminal investigation and to try the former prime minister of Pakistan, Madame Bhutto, her husband, Monsieur Asif Ali Zardari, her mother, Begum Nusrat Bhutto and the other members of the Bhutto government, public servants and civilians implicated in the conspiracy of Madame Bhutto and/or her husband to misappropriate public funds for their own profit."

The French police report said the document explicitly referred to the Agosta contract: "This request concerns several cases of malpractice including that of the purchase of French submarines." According to the DNIF investigators "the chronology and the currency [of the sums paid] suggest that these payments are secret commissions paid by the DCN-I [the commercial arm of the submarine builders DCN] to Monsieur Zardari and Monsieur Lodhi for their considerable service in assuring that DCN-I got the contract."

Huge sums are recorded at the end of 1994 alone, when a company called Marleton Business Inc. was set up through a lawyer in the tax haven of the British Virgin Islands for use by Zardari. A first payment of some of 5.5 million francs (about 838,000 euros) took place in October 1994  "of which 70% goes to Monsieur Zardari (AAZ) and 30% to Monsieur Lodhi  (AL)," noted the French police report.

Sarkozy's Ministry 'Approved' Bribe Sums
A second transfer took place two months later, in December, for an altogether larger sum of 59.48 million francs, (about 9.06 million euros) "divided into 41.636 million [francs] for Monsieur Zardari and 17.844 million for Monsieur Lodhi". That represented 6,934,296 euros for the current [unlawful] president of Pakistan, and 2,971,841 euros for his partner.

According to the French investigators, the official Pakistani documents seized in Lohdi's Paris home also explain that "Messieurs Lodhi and Zardari received their bribes in the bank accounts of a series of offshore companies."

The report says they are all based in the Virgin Islands and they are identified by the DNIF as: Marvil Associated Inc., Penbury Finance, Oxton Trading, Crimities Holding and Dustan Trading.

The banks involved in the payments were also recorded in the Pakistani documents, as well as the bank accounts used. "The commissions paid into the accounts, notably opened by these companies at the Pasche bank and the bank of Piguet et Cie, in Switzerland, were probably supplied by transfer from the Banque francaise du Commerce exterieur [French bank of Foreign Trade], account number 2700 0008358 or  IV10000083580."

Several high-profile witnesses questioned in November and December 2010 by judge Van Ruymbeke have insisted that the bribes paid in 1994 were perfectly legal and were approved by France's then-Defence Minister, Francois Leotard, and its budget minister, now France's President, Nicolas Sarkozy.

In a statement he gave to Van Ruymbeke on November 9th, 2010, former DCN-I Finance Director, Gerard-Philippe Menayas, said "the total volume of the commissions was validated, contract by contract, by the ministers of the budget and defence."

In a statement given to judge Van Ruymbeke on December 7th, 2010, Jacques Dewatre, who in 1994 was head of the French foreign intelligence service, now called the DGSE, testified that "The approval for commissions is the responsibility of services which depend upon the Minister of Defence and the Minister of the Budget."

MediaPart has learnt Van Ruymbeke's investigation has already established that, in order to convince the Pakistani authorities to choose the French submarines, a very structured network of corruption was established by a French state company dedicated to such activities. This was the Societe francaise de materiels armement, the SOFMA, which partnered the designers and builders of the submarines, the DCN.

Van Ruymbeke has evidence that the SOFMA set aside the equivalent in francs of 51.6 million euros for bribes to be paid out in the Pakistan deal.

Influential agents working with the SOFMA used the money to gain the favours of numerous Pakistani dignitaries, in both military and political spheres. While the practice of commission payments was then legal for France, the reception of bribes was illegal in Pakistan.

Asif Ali Zardari was one of the main benefactors of the paid bribes, according to a former SOFMA Managing Director, Henri Guittet. He evaluated the sum paid to Zardari as being 4% of the total value of the sales contract, which amounts to a value of 33 million euros. "I believe there was one percent paid upon the signature of the sales contract, which means at the moment when everything can get underway and when notably the deposit and [partial] down payment has been paid, and one percent later," he said in a formal statement. "The remaining two percent was pro rata with the payment of the clients."

But French judicial investigators are investigating whether the Agosta contract also involved illegal payments in France. It was in the summer of 1994, despite the fact that negotiations with Pakistan over the sale were already successfully concluded, that the government of then-Prime Minister Edouard Balladour imposed two Lebanese intermediaries in the contract, Ziad Takieddine and Abdulrahman El-Assir.

They were promised supplemantary commission payments worth more than 30 million euros. Both judge Van Ruymbeke and judge Marc Trevedic, who is heading investigations into the murders of the French engineers, have collected evidence suggesting that part of the supplementary commissions was destined for Balladur's 1995 presidential election campaign.

Trevedic's investigation has discarded the theory touted by the Pakistani authorities that the engineers were targeted by al-CIA-da. He is now centering on suspicions that the bomb attack was directly or indirectly linked to the secret financial arrangements surrounding the Agosta deal. More precisely that it was in retaliation for the non-payment of commissions promised to Pakistanis after they were all blocked by Balladur's rival Jacques Chirac, after he won the 1995 elections.
Allah knows best.






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