The Federal Investigation Agency (FIA) has launched an investigation into the country’s biggest foreign currency exchange scandal which reportedly caused huge losses to the national kitty, according to media reports.
Per details, FIA is looking into alleged dubious deals between Western Union (WU), ZARCO Exchange Company Private Limited (ZECPL) and the State Bank of Pakistan (SBP) on account of misappropriation in remittances, it was reported.
A case has been registered at FIA Corporate Crime Circle Lahore, while non-bailable arrest warrants were issued for SBP Export Policy Department (EPD) Senior Joint Director Najamul Saqib.
The agency has also summoned EPD Senior Executive Director Asad Qureshi, EPD Director Muhammad Mansoor Ali, EPD Additional Director Moinuddin, WU Country Manager Abdul Hameed Fareed, former country head Sobia Rehman and Senior Vice President Middle East and Africa Jean Claude Farah. Evidence emerged regarding payment of school fees of Saqib’s son from the account of ZECPL on instructions of Mubashir Hayat Mirza, former chief executive officer of ZARCO. Under the law, Saqib and the other mentioned officials of the EPD are required to restrict ZECPL from illegal transfers of foreign exchange outside the country.
Per SBP rules, a foreign exchange company can transfer only 20% outside the country against the foreign remittances received in the country. The investigation revealed that ZECPL transferred 35% foreign exchange currency in collusion with officials of WU and SBP.
Investigations suggest that this increased transfer resulted in a surge in the value of the dollar against the rupee, causing heavy losses to the exchequer.
FIA’s investigations also reveal that WU did not pay any amount in taxes despite earning an approximate profit of Rs 1.5 billion per year. The question of tax officials’ involvement in the large-scale evasion is also being scrutinised by the FIA’s investigation team.
FIA officials involved in investigations said if the accused are arrested and requisite records are provided to the agency, it would help put a stop to illegal transfer of foreign exchange abroad in future.
However, the task had been made difficult for FIA as EPD officials reportedly refused to provide the required records, while the Finance Ministry and the SBP have also barred WU representatives from becoming party to the investigation.
