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KARACHI: Directorate of Post Clearance Audit (South), Karachi has unearthed a complex web of deceit and fiscal fraud involving fictitious solar panel companies, which reportedly transferred Rs 73 billion out of Pakistan.

According to details, the Directorate during the sectoral audit of solar panel imports assigned by the Federal Board of Revenue (FBR), identified significant irregularities and violations in the operations of various importers.

As a result, two FIRs have been lodged against two companies. The charges included over-invoicing, obstruction to audit, and using illicit funds to finance imports, ultimately leading to trade-based money laundering (TBML).

The investigation has exposed the modus operandi of these companies, including the suspicious closure of their registered premises.

Further investigation revealed mutual fund transfers between these two companies, suggesting a strong association between them and both were located in Peshawar.

Alarming evidence has emerged, indicating that these associated importers transferred a staggering total of Rs 73 billion out of Pakistan in connection with solar panel imports.

The investigation found that in 2,718 import Goods Declarations (GDs), the combined over-invoicing amounted to a staggering Rs 38 billion. The declared import values were exceptionally high, ranging between USD 0.35 to 0.70 per watt, a significant deviation from the bonafide prices of solar panels, which should range between USD 0.17 to 0.22 per watt, as confirmed by the Pakistan Solar Association.

Moreover, income tax records provided compelling evidence that these companies operated as fictitious entities, utilising illicit funds far exceeding their legitimate financial worth.

Similarly, the sales tax declarations corroborated the over-invoicing scheme, as solar panels originally imported at Rs 73 billion were subsequently sold in the local market for only Rs 46 billion, highlighting the stark contrast between import and local sale values.

In response to these findings, DG PCA Chaudary Zulfiqar Ali assigned the PCA South to accelerate the investigation. Director PCA South, Sheeraz Ahmed, and his team played a pivotal role in uncovering these severe violations in the solar panels sector.

Meanwhile, sources in PCA said authorities are actively pursuing further investigations to bring the culprits to justice and hold them accountable for their actions.

This expose of a massive illicit scheme involving substantial fund transfers and fiscal fraud underscores the critical need for rigorous monitoring and enforcement measures in the business and import sectors.

The investigation against these companies is a stark reminder of the importance of stricter regulations to prevent such incidents and safeguard the integrity of Pakistan’s financial system.

Copyright Business Recorder, 2023

Comments

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Abdullah Sep 06, 2023 01:52pm
Seems that all the black money imran khan ,bushra bibi,Farah gogi was transferred this way.
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MalikSaabSays Sep 06, 2023 02:22pm
If the above is true....a job well done. But this is the first step, so don't stop here. Main thing is conviction.
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SAMIR SARDANA Sep 06, 2023 05:54pm
WHERE DOES SPV COME FROM ? WHO HAS THE WAFERS ? PRC ! PRC AND PAKISTAN = BUM CHUMS ALL IMPORTS IN EXCESS OF 1BILLON USD INTO PAKISTAN - WITH COO OF PRC ,SHOULD BE CANALISED VIA TCP ! TCP WILL SIGN LONG TERM DEALS WITH CHINESE CORPORATES AND GET USANCE CREIDT IN YUAN AND LOWEST FOB RATES AND FREIGHT ! THAT ENDS MONEY LAUNDERING AND USD SMUGGLING AND HAWALA ! THAT ALSO GETS IN CUSTOMS DUTY AND WIPES OUT THE IBR AND HAWALA GAP ! STEP 2 - COMPUTE THE ECONOMIC LOSS OF THIS OVERINVOICING AND OFFER THAT AS AN INCENTIVE, TO PRC, TO SET UP ASSEMBLY OPERATION, IN PAKISTAN ! THAT WILL KILL THE SCAM ! ALLOW CHINESE COMPANY,NIL TAX AND 100% PROFIT REPATRIATION ! CHINESE SPV MAKERS SELL VIA INTERMEDIARIES - BECAUSE THE IMPORTERS WANT IT THAT WAY - TO STASH USD, IN TAX HAVENS ! SO PRC WILL BE HAPPY TO SELL TO TCP AND START ASSEMBLY IN PAKISTAN SOME IN THE GOVTT WANTS TO ALLOW THIS STATUS TO GO ON ! SAMIR SARDANA
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Attu Ram Punjabi Sep 06, 2023 08:17pm
No action will be done because sir, so many case against so many person in pass time, I never hard hard line as punishment for culprits plz
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Attu Ram Punjabi Sep 06, 2023 08:18pm
@MalikSaabSays,, U are right but no punishment & no justice, so many other person ready Futher fraud plx
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Fakob Sep 06, 2023 08:30pm
@Abdullah, Patwari spotted ,
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maqbool Sep 06, 2023 10:18pm
as usual these cases will be swept under the carpet as in every other case
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Aziz K Sep 06, 2023 11:27pm
The whole government machinery including Customs, FBR, State Bank of Pak couldn't detect a MEGA FRAUD of PKR73 Billions but they arr quick to slap Rs124,000 tax when a foreign exchange earner brings an iphone along for his/her personal use. What a country???
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Sagar Baloch Sep 07, 2023 03:13am
They will secure a bail from court.a little bribe to investigation team.sweets for emerging govt.transfer of current officers incharge.modificiation of evidences.hence no proof.case closed.
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Farrukh Kiani Sep 07, 2023 07:16am
Every state machinery in Pakistan is Chor. All the employees their bosses and the handlers
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Usman Sep 07, 2023 11:15am
@Fakob, Proud of him.He is not a youthia atleast.patwaris still have logic and undrstand when explained to thim.Youthias are a lost case full of ignorance and are members of a cult whose leader was so weak that he ran the country with help of a peerni.
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Saqib Sep 07, 2023 07:51pm
@SAMIR SARDANA, with all due respect the people with vested interests have completely high jacked the system and whether is TCP or any government entity, it is under their control.Only solution is to restore the people's right to elect their own Government which will bring the things in control!!!
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Khan Sep 07, 2023 08:13pm
@Usman by what logic, a convicted person hidden in London and still, patwari call him 'sher'. He even cannot dare to come to Pakistan during his own party's government when his brother was prime minister. And by what logic abdullah instantly declared Imran Khan and Bushra bibi, Farah's names? Is he the investigating officer?
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Qaiser Sep 07, 2023 11:29pm
To quote a famous saying of Ch Shujaat Hussain "mitti pao, roti showti Khao"...
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