After the dismissal of Benazir Bhutto's first government on 6 August 1990 by President Ghulam Ishaq Khan on grounds of corruption, the government of Pakistan issued directives to its intelligence agencies to investigate the allegations. After the fourth national elections, Nawaz Sharif became the Prime Minister and intensified prosecution proceedings against Bhutto. Pakistani embassies through Western Europe—in France, Switzerland, Spain, Poland and Britain—were directed to investigate the matter. Bhutto and her husband faced a number of legal proceedings, including a charge of laundering money through Swiss banks. Though never convicted, her husband, Asif Ali Zardari, spent eight years in prison on similar corruption charges. After being released on bail in 2004, Zardari suggested that his time in prison involved torture.
A 1998 New York Times investigative report claims that Pakistani investigators have documents that uncover a network of bank accounts, all linked to the family's lawyer in Switzerland, with Asif Zardari as the principal shareholder. According to the article, documents released by the French authorities indicated that Zardari offered exclusive rights to Dassault, a French aircraft manufacturer, to replace Pakistan's air force's fighter jets in exchange for a 5% commission to be paid to a Swiss corporation controlled by Zardari. The article also said a Dubai company received an exclusive licence to import gold into Pakistan for which Asif Zardari received payments of more than $10 million into his Dubai-based Citibank accounts. The owner of the company denied that he had made payments to Zardari and claims the documents were forged.
Bhutto maintained that the charges levelled against her and her husband were purely political. In 2006, after 15 long years an Auditor General of Pakistan (AGP) report was brought forward when then-President Pervez Musharraf was trying to gain support from Bhutto. According to this report, Benazir Bhutto was ousted from power in 1990 as a result of a witch hunt approved by then-president Ghulam Ishaq Khan. The AGP report says Khan illegally paid legal advisers 28 million rupees to file 19 corruption cases against Bhutto and her husband in 1990–92.
Yet the assets held by Bhutto and her husband continue to be scrutinised and speculated about. The prosecutors have alleged that their Swiss bank accounts contain £740 million. Zardari also bought a neo-Tudor mansion and estate worth over £4 million in Surrey, England, UK. The Pakistani investigations have tied other overseas properties to Zardari's family. These include a $2.5 million manor in Normandy owned by Zardari's parents, who had modest assets at the time of his marriage. Bhutto denied holding substantive overseas assets.
Switzerland
On 23 July 1998, the Swiss Government handed over documents to the government of Pakistan which relate to corruption allegations against Benazir Bhutto and her husband. The documents included a formal charge of money laundering by Swiss authorities against Zardari. The Pakistani government had been conducting a wide-ranging inquiry to account for more than $13.7 million frozen by Swiss authorities in 1997 that was allegedly stashed in banks by Bhutto and her husband. The Pakistani government recently filed criminal charges against Bhutto in an effort to track down an estimated $1.5 billion she and her husband are alleged to have received in a variety of criminal enterprises. The documents suggest that the money Zardari was alleged to have laundered was accessible to Benazir Bhutto and had been used to buy a diamond necklace for over $175,000. The PPP has responded by flatly denying the charges, suggesting that Swiss authorities have been misled by false evidence provided by the Government of Pakistan.