Privileged & Conjidestial 36. However, also amongst the Swiss documents is x draft of a letter, again dated 25 Apeil 1995, which seems w indicate that the adresse was 1) be paid 5% of the sale price of aircratt tor lus assistance in securing the sale to the Government of Pakistan {page}. ft appears likely that this is a draft of the agreement under which Marieton was to receive 5% of the sale price of the aircraft. This is reinforced by typed wotes of meetings in Paris on 29 March and 26 April 1995, also found in the Swiss documents (see pages {...|). These refer wo mestings with Dassault in which “comuission* of 5% is discussed and itis suggested that the ayreement would be signed by Marletom. The mestings were attended by a Mr Chowzenoux and a Mr Carreyrow who were signatories to Dassault's Jemer of 25 Aprii 1995, Both notes refer to “Asif” (likely w be ‘Ms Zaréari) and the first refers im terms to Mr Lodhi. The author of the notes is not clear. However, the first lists various expenses, including a return flight from Geneva w Paris and the cost of an airport car in Geneva Consequently, it seems fikely that the author of the motes was Mr Schlegedmitch Capricorn Trading SA (“Capricorn”) ‘57. The Twelfth Defendant was incorporated in the BVI on 5 January 1994 with company number 105280 (vee page [..l). Again, Mr Zardari seem to have been the alter ego of Capricara and the controlling mind behind #. A mandate form for opening an accoumt at Citibank ia ‘Switzerland in the name of Capricorn lists Mr Zardari as the beseficisl owner of Capricoms: (page f...D. 58. Capricorn appears to have been used to collect secret commissions from a Dubai firm of gold ‘und silver traders, ARY Traders ("ARY"). Qn 7 November 1994, the relevant Government ‘Committee approved a proposal w change the scheme whereby gold and silver were imported into Pakistan. it was envisaged that {0 of so firms would be licensed w import gold/silver and ‘Bo imports would be allowed other than through these firms gramed a licence in December 1994. During the period from December 1994 w the dissolution of Benarir Bhutto's Government ia November 1996, ARY confirmed w hold the only such licence and, therefore, had an effective monopoly in relation to this business. 59. No copy of any writen agreement berween Capricora and ARY has been found, but there is evidence that Capricorn received substantial sums from ARY. A handwritten schedule similar tw that for Bomer was found amongst the Swiss documents which details movements in and out of Capricorn’s Cikibank accounts in Genova and Dubai (see pages {|}. The sheet for Capricorn's Citibank Dubai account refers «9 Mr Zardari as tie beneficiary of the account (age [...]: the same sheet records the receipt of two US $5 million paymens fom ARY, one ponent oe) 15.‘on 5 October 1994, and one on 6 October 1994. In relation wo the first payment, there is an advice from Citibank confirming that the payments were recived froin ARY (page [...]). AS 1w the second payment, there isu fax from Mr Schlegetmilch w Mr Razzak of ARY chasing this (page }. A tolex contirming the second payment is at page { |}. Subsequently, all the funds in Capricorn’s Citibank Dubai account were transferred wo its accounts at Citibank in Swinzertand (pages |p). \Nassam Overseas Inc (*Nassam*) 60. The Thirteenth Defendant was another vehicle usod by Mr Zardari. Although company searches hhave been undertaken in the BVI, there is a0 evidence of Nassau having been incorpordiod there. | am not presently aware of the place of this company's incorporation. However, it appears w have been in existence since at leust 1990 because funds from its account at Barclays Bank in Geneva sem tn have beca used in the purchase of the property in Hammersmith fr Maristoa Securities Ine (see paragraph { | above} (pages { |). 61. More importantly, there were 1mo letters im the Swiss documents, both dated 29 June 1994 (pages |) and both in the same form as the agreement with Mariston (see paragraph {| above). One lester agreed to pay Nassam 3% of the total amount paid io Cotecna by the Goverumnent of Pakistan if Cotcna secured a contract within 6 months: the second letter agreed ‘© pay Nassam 3% of all amounts paid to SGS. As Ihave ssid, contracts were signed by both Cotecna and SGS in September 1994. On the face of it, therefure, Nassam would have been due in the region of USS8 million under these letters. We do not currently have evidence of ali these payments. We ouly have evidence of one payment: US $100,803.26 was paid by ‘Cotwcns into Nassam's account at Barclays Bank in Geneva on about 9 June 1995 (sce page [...). ‘Dargal Associated SA ("Dargal*) 62. The Fourteenth Defendant was incorporated ip the BVI on 14 June 1994 with company number 120518, Dargal appears io have struck an agreement with a Polish tractor company ZPC Ursus (CUrsus") whereby Dargal would receive payments in the event of Ursus receiving an onder from the Agricultural Development Bank (*ADB*) (a bank wholly owond by the Saw of Pakistan) for the purchase of tractors 63. The purchase of tractors by ADB from Ursus was authorised by the Ministry of Commerce on 16 October 1994 (page { J). Letters of credit were arranged to pay for the tractors meuneaimes 16Privdeged & Canpbeniial (pages [.)). The unit price fer these wactors was USS4,650 and there are invoices for 6,300 ‘tractors (aggregate value US$29,295,000) ipages |), from Urout on | February 1995 for US $76,846.82 and a second on 16 February 1995 tov US $74,464.10 (pages...) ‘These payments were made w Dargal's account st Cantrade Ormond Burrus Banque Privée SA in Geneva. Two further imwices in the ammunts of US $1.473.260 40 and US $345,579.60 wore set to Ursus by Mr Schlegetmitch (signing as 2 dinctor of Dargal) oa 27 February 1995 (pages |). Mr Schlegeimilch's covering lester ‘ers w Uru’ agreement with Dargal and the imwices stated that they are in respect of 6,000} tractors to the Agricultural Development Bank" (pages |...) According tw the imoices, Payments were Ww be made to Dargal's account with Banque Cantrade Ormond, Burrus SA, Geneva. THE SWISS PROCEEDINGS 6. uate aimee sed 5855 445 Hate 1 responte © 4 request for asistnce made by the Government of Pakistan wo the Swiss Federation, which relied in part upow the Swiss documents, the Swiss Federal Potice made blocking orders on 8 September, 17 Sepiember and 7 October 1997 in respect of. in weal, seven banks, where there was evidence of accourts beld or controlled by Mr ‘Zardari, A copy of the (Orders (in Freach and with English translation) appears at fexhibit) | [* Is the State able or willing wo reveal the terms of the order?} 2 a. Coe aietyyPrivileged & Confidential shareholders are all entities registered in the Ile of Man, or persons concerned in the company registration business, 40 that the uitimate benelicial ownership of their share capital or assets is concealed (pages [ |). ‘The addresses in Englant given for Parsonage and Winkfid are the offices of Lawrence Jooes, suliciwrs 68. The Fifth Defeodant, Otto, is also an isle of Man registered company. It is shown at HM Land Registry ax baving a charge over Rockwood House (che property of Romina) Its address in England is the sane as the London office of the Ninth Defendant, Mr Howard, the salicitor 68. As octal in pacagraph ___abuve, the Ninth Defendant, Mr Richard Howard, is an English soliciwor He appears w have been the solicitor responsible tor the conveyancing work which {ed w the acquisition of the Rockwood Estate when he was a partner at the fim of Lawrence Jones, 70. AS appears from paragraphs $3 © 64 above, the Ninth w Fourtwenth Defendants, the BVI company, were used as vehicles w receive secret commissions. While the Sixusen Defendant, Mr Schlegelmilch, was, of course, the individual responsible for administering the secret cominissions received by the HVI companies on behalf of Mr Zardari, Ms Bhutto and/or Nusrat Bhutto. Apart from the evidence of Mr Schlegelmilch's imulvement referred w above, papers have been discovered which show that he had privale funches with Nusrat Bhuw and te Pakistan Ambassadir in Berne. A copy of the guest list foc lunch on 27 August 1995 at the then Ambassador's residence in Berne is at page | | and a copy of an extract from the Ambassador's cogapement book is at page [ |. Ti. The Fifteenth Defendant, Mr Lodhir, was involved im the contracts to supply submarines and wrcraft W the Pakistan miliury and, at the least, feceived secret commissions ia relation w the first (soe paragraphs 54 w 5? atove) ‘THE TRACING CLAIMS 72, Theres, i is comtended, clear evidence wo connect Mr Zardari, Nuscat Bhutu and/or Ms Bhutto with a mumber of assets within the jurisdiction, and in particular with three propentes Although it is not possible at this stage 10 prove the route by which sums derived from corruption (whether ax described above at paragraphs {] to |} or otherwise) were converted into ‘sas within the jurisdiction, i is submitted that there is very strung evidence potating to this conclusion, given: wk “18