ISLAMABAD: The Senate Standing Committee on Finance directed the Federal Board of Revenue (FBR), on Wednesday, to conduct a thorough inquiry into the money laundering by solar panel importers and submit it a report.

On Wednesday, a meeting of the Senate Standing Committee on Finance presided over by Senator Saleem Mandviwala was informed that seven companies have been identified in the money laundering scam by solar panel importers and six more FIRs have been registered against them.

Member Customs (Operations) said as the chairman and entire team of the FBR is new, it would not cover up the scam, adding that they have sought details from 21 banks on the import of solar panels.

Solar panels import scam: FBR, SBP heads to brief Senate panel today

She added that one importer deposited Rs14 billion and another Rs11 billion cash in the banks.

After some members of the committee, as well as, the chairman wanted the matter to be referred to the FIA because the scam was taken under the nose of the FBR, the Member Custom Policy asked the committee that as the FBR has been already investigating the matter, it should be allowed to do instead of referring it to the FIA.

SBP Deputy Governor Dr Inayat Hussain informed the committee that they have investigated the matter and sent reports to the concerned institutions including the Financial Monitoring Unit (FMU) with 37 suspicious transaction reports issued by the banks on the issue.

Mandviwala remarked that solar panel importers have succeeded in laundering Rs69 billion in the last five years but the FBR did not notice any suspicion and overall Rs25 billion were deposited in two different accounts without facing any queries. He directed the FBR to conduct an inquiry into the matter and submit its report before the committee.

The committee has also taken up the matter raised by Senator Hilalur Rehman regarding the non-payment of compensation to the affectees of Mohmand Dam. Officials informed the committee that payment had been made to the affectees and any increase in compensation amount could only be done through the courts.

On an agenda item of reported fraud of Rs5 billion in a bank in Faisalabad, the SBP deputy governor informed the committee that the incident resulted from uncertain mutual trust between the bank officials and the aggrieved party, which forced the aggrieved party to perform their transactions outside the place of business.

He said that the SBP is in coordination with both parties and the matter will be resolved soon. The committee directed the SBP to start an awareness campaign advising the account holder for not doing transactions with banks outside the banks in order to avoid any such incidents in future.

The committee was briefed on Deposit Protection Management.

The SBP deputy governor mentioned that deposit up to Rs500,000 is protected by Deposit Protection Corporation and around 94 per cent of the depositors fall under this category.

Dr Hussain stated that the deposit is being protected by Deposit Protection Corporation, a wholly-owned subsidiary of the SBP.

He further added that no depositor has lost their money in the financial history of the country.

The meeting was attended by senators Saadia Abbasi, Zeeshan Khanzada, Dilawar Khan, Kamil Ali Agha, and Syed Faisal Ali Subzwari.

Additional Secretary Finance Division, Deputy Governor SBP Dr Hussain, Member Customs, and other senior officers of relevant departments were also in attendance.

Copyright Business Recorder, 2023