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New anti-corruption law in Pakistan

Scott McDonald in Islamabad

Pakistan's military regime today backed up its crackdown on corruption with tough penalties of up to 14 years in jail for those convicted of graft or refusing to pay back loans.

After a deadline set by new military ruler General Pervez Musharraf for defaulters to pay back their loans passed yesterday, the government beefed up patrols at airports to prevent anyone accused of graft or loan defaults from fleeing.

The government also put into effect a new law that deals severely with those who are caught, indicating it would go after all those it accuses of looting the country over the past 15 years.

The crackdown is seen as the first major test of the new military regime.

Shortly after seizing power on October 12, Musharraf announced a massive crackdown on loan defaulters -- estimated to owe banks 211 billion rupees -- and warned he would deal harshly with those who did not comply.

''All the offences defined in the order shall be non-bailable and a person who commits the offence of corruption and corrupt practices shall be punishable with imprisonment for a term which may extend up to 14 years,'' the new law said.

Bankers today estimated that about seven billion rupees had been recovered before the expiry of the deadline, slightly more than three percent of the total.

Most of the money was borrowed by a politically connected elite.

Witnesses said the police carried out raids in the capital Islamabad, in Lahore, the capital of populous Punjab province, and in Karachi, but it was not known if anyone was arrested.

The new law also said that people convicted of corruption would lose their right to hold office for 21 years and that the assets ''found to be disproportionate to the known sources of his/her income'' would be seized.

''We want to give a clear message to wilful defaulters and the general public that the era of loot and plunder comes to an end and nobody will be allowed to do so in the future,'' Interior Minister Moinuddin Haider was quoted by APP as saying.

Newspapers reported that representatives of several companies belonging to the family of ousted prime minister Nawaz Sharif had also made payments to their creditors yesterday.

The News said 271 million rupees were paid before the deadline expired, while The Nation said the family's Ittefaq Group paid 371 million dollars.

UNI

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