SINDH HIGH COURT RULES IN FAVOR OF AL RASHID TRUST

C O N F I D E N T I A L ISLAMABAD 002023 SIPDIS SIPDIS E.O. 12958: DECL: 05/02/2017 TAGS: PTER KTFN EFIN KPAO PK SUBJECT: SINDH HIGH COURT RULES IN FAVOR OF AL RASHID TRUST Classified By: Acting Deputy Chief of Mission James Williams for Reason s 1.4(b) and (d) ¶1. (SBU) Summary: On April 26, the Sindh High Court (SHC) suspended the Pakistan government's decision to freeze the assets of Al Rashid Trust (ART) and seal its offices. The two-member bench, which included the Chief Justice, ruled there was no justification for the closing of the offices. This is an interim ruling. The court reconvenes on May 15 for further hearings on the case. For now, the court has directed the government to partially lift the ban so that ART will be able to distribute perishable food items and drugs to the earthquake-affected areas. ART stated they are contemplating creating another charity in order to "avoid a repetition of past events." End Summary. ¶2. (C) On April 26, the Sindh High Court (SHC) issued an order suspending the government's action of February 18, 2007 that froze the assets and closed the offices of Al Rashid Trust (ART),as required by UNSCR 1267. This is an interim order, however it has an immediate, nationwide affect. This allows ART access to its perishable food and medicine in order to distribute them to the earthquake-affected areas. The court also directed ART to distribute the goods through another charitable organization as the UN order forbids ART involvement. ART stated they would use Al Amin Welfare Trust. They also informed a local newspaper they were now considering forming a new charity in order to "avoid a repetition of past events." (Note: Embassy is seeking meetings with Finance Ministry and Social Welfare Ministry officials on GOP's action plan to keep ART's assets frozen and offices closed. End Note). ¶3. (C) The SHC will reconvene on May 15 to more fully examine the matter. It is likely that they will again find in favor of ART. In January 2006, this same court overturned a similar move by the GOP to freeze the assets and close the offices of ART. At issue is whether UN obligations trump domestic Pakistani law. The 2006 decision has been appealed to the Supreme Court, but post sees no movement toward an expeditious adjudication. 4 (C) Comment: The government appealed the 2006 decision and presumably will appeal this one as well. The GOP may be reluctant, however, to press the Supreme Court to hear the case while the Supreme Court and the Supreme Judicial Council are hearing the reference against the Chief Justice. End Comment BODDE