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How SECP head shut down Chaudhry Sugar Mills money laundering investigation.
https://www.dawn.com/news/1342029/fia-goes-ahead-with-secp-probe-at-brisk-pace
Sources in the FIA and SECP said that the team’s first order of business was to meet Muzzafar Ahmed Mirza, the commission’s chief prosecutor and head of its Prosecution and Legal Affairs Division.
Mr Muzzafar was asked to remain available during the holidays and ensure that officials of the law department were present, along with all the relevant records.
An FIA official Dawn the FIA team started its work on the same day as it was notified not only to save time, but also to maintain secrecy and avoid any hindrance in the investigations, referring to SECP Chairman Zafar Hijazi.
The accusation of record-tampering was levelled against incumbent Mr Hijazi, as it was alleged that he closed an inquiry of money laundering by Chaudhry Sugar Mills — owned by the Sharif family — with retroactive effect.
“The FIA officials came prepared and knew where to start. Within minutes of taking charge, Mr Arsalan, deputy director of the Enforcement Department, was called to answer some questions,” the official said. His interview lasted for more than four hours.
In its response to the JIT’s allegations, submitted to the Supreme Court, the SECP maintained that investigations against Chaudhry Sugar Mills were completed in 2013, before the incumbent government came to power.
But a startling revelation was made by Maheen Fatima, the current director of the Internal Audit and Compliance Department, before the JIT and the FIA team — that she had initiated investigations against Chaudhry Sugar Mills in 2011, but the case was closed in 2016
In her statement to the JIT, which was also repeated in front of the FIA team, Ms Fatima claimed that the investigation into money laundering by Chaudhry Sugar Mills was dumped in March 2013, at the time of the elections.
In view of these contradictory statements, sources said that those examined by the FIA team included Abid Hussain, who was heading the Enforcement Directorate in 2011 and is currently the executive director of the Corporate Supervision Department in the SECP’s Company Law division.
In addition, then acting SECP chairman Tahir Mahmood — who is currently working as commissioner of the Company Law Division — was also asked if the investigations against Chaudhry Sugar Mills were finalised in 2013 or not.
Another officer, Ali Azeem, who was executive director in 2016, told the FIA team that the Chaudhry Sugar Mills case was closed in 2013 and referred to the official statement submitted by the SECP to the Supreme Court.
But sources in FIA said that it was clear from the statements that after Mr Hijazi took over as the chairman in Dec 2014, he reshuffled executives in the commission and closed the sugar mills inquiry after the Panama Papers case surfaced.
This has made the SECP a divided house, since those related to the Enforcement Department maintain that the case was closed in 2016, while the official stance of the commission is that the case was closed in 2013.
The FIA team is expected to finalise and submit its report to the JIT on June 30 or July 1, 2017.
https://www.dawn.com/news/1342029/fia-goes-ahead-with-secp-probe-at-brisk-pace