KARACHI: The Directorate Customs Post Clearance Audit South under the FBR has unearthed money laundering worth Rs106 billion and registered a case against seven fake companies involved in money laundering.
These companies include M/s Skylinkers Trading Company Peshawar, M/s Skylinkers Business Chain Private Limited Peshawar, M/s Bright Star Business Solution Private Limited Peshawar, M/s Moonlight SMC Private Limited Peshawar, M/s Pak Electronics Lahore, M/s Solar Site (Private) Limited Lahore, and M/s Royal Zone (Private) Limited.
According to Director Customs Post Clearance Audit South, evidence-based anti-money laundering operations have successfully dismantled the notorious money laundering cartel that laundered Rs106 billion through 7 fake companies.
During the investigation, the seven fake importers were found to be involved in over-invoicing and money laundering of Rs 106 billion against solar panel imports, even though the total value of the solar panels imported was Rs 119 million as per the income tax declaration.
According to sources, the syndicate headed by Rab Nawaz and his brother Ahmed Nawaz used this web of fake companies for their illegal activities. The cartel laundered billions, causing huge losses to the country. Out of the Rs 106 billion laundered, Rs 42 billion was deposited as cash deposits in commercial banks to hide the illegal origin of the said funds.
All the local sales of Rs 85 billion of these bogus companies were declared in the names of unregistered and unidentified persons. During the investigation, clear evidence was found that large-scale over-invoicing was identified at the import stage.
The actual price of the solar panels, as per the original commercial invoice from the exporting country China, was 0.15 cents per watt, and they were later imported into Pakistan at a value of 0.35 to 0.70 US dollars per watt, indicating massive over-invoicing of between 235% and 500%.
Moreover, how did the dummy owner of this entity, who was declared as a salaried person in the income tax return, with an annual income of Rs 250,000 and a business capital of Rs 450,000, import solar panels worth Rs 2.5 billion?
The PCA investigation also revealed that the illicit funds were ultimately transferred to the bank accounts of four companies based in China. Interestingly, these companies were owned by Rab Nawaz, who also operated a network of seven shell companies in Pakistan.
These China-based companies also played a role in hiding the actual export values of solar panels, adding another layer to the illicit activities. According to sources, the Customs Post Clearance Audit teams led by DG PCA Chaudhry Zulfiqar Ali and Director PCA South Shiraz Ahmed have played a significant role in uncovering the depths of this fraud.
With the mobilization of special teams and the acceleration of investigations, the FBR is determined to bring all the culprits to justice. The efforts of the FBR have dismantled this notorious network and the elimination of this syndicate marks a significant breakthrough in the fight against financial crimes.
