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Will probe envoy-designate’s role as Azgard Nine Limited’s director investment
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Also summons SECP chairman, PSX MD to record statements
LAHORE: The National Accountability Bureau (NAB) has summoned the newly appointed Pakistan’s Ambassador to the United States (US) Ali Jahangir Siddiqui for a probe into an embezzlement allegation on March 22.
Siddiqui has been accused of causing losses worth Rs 40 billion to various financial and government institutions and will be questioned by a Combined Investigation Team (CIT) during his appearance before NAB.
The anti-graft watchdog will interrogate Siddiqui under section 19 of National Accountability Ordinance (NAO) 1999, at NAB Complex Thokar Niaz Baig for his role as director investment in Azgard Nine Limited (ANL).
“You are advised that failure to comply with this notice may entail penal consequences as provided in section 2 of the schedule of NAO 1999,” said the NAB call-up notice to Ali Jahangir Siddique dated March 15.
According to documents available with Pakistan Today, Ali Jahangir Siddiqui is summoned to respond to allegations that include syphoning off funds amounting to Euro 23.758 million in 2008 for the purchase of an Italian Company “Monte Bello SRL” using a foreign company which resulted in a loss to the company shareholders.
He is also accused of selling shares of Agritech Limited to different financial and government institutions by ANL at a higher price than the market price to settle loan defaults, which resulted in an approximate loss of Rs 40 billion to the respective institutions.
It is relevant to mention here that reportedly in 2016, Securities and Exchange Commission of Pakistan (SECP) in its report said that prices of Azgard Nine group’s shares were artificially increased from Rs24 to Rs70, and payments were also made to an unidentified party.
NAB has also asked heads of various departments and organisations to record statements before NAB and provide information for the ongoing inquiry against directors and owners of ANL and Agritech Limited.
Securities and Exchange Commission of Pakistan (SECP) chairman has been requested to depute concerned officer on March 20, along with details pertaining to ANL and Agritech Limited.
The SECP chairman has been asked to furnish in detail the action SECP took after misstatements were made by various stakeholders at the time of Agritech Limited’s listing. The chairman’s representative to the NAB will also be questioned regarding writing off inquiries into the offshore fund transfers by ANL.
According to documents available with Pakistan Today, Agritech Limited was listed on the Stock Exchange without disclosing any overdue or defaults made by the company. Furthermore, the Offer for Sale Documents (OFSD) approved by SECP boasts success story of Agritech Limited which misguided the general public.
Similarly, EFG Hermes Pakistan Limited (formerly Invest & Finance Securities Limited) and BIPL Securities (formerly KASB Securities) Chief Executive Officers (CEOs) have been summoned on March 21, to record statements and provide underwriting reports of the company.
Arif Habib Limited CEO, Asif Maqbool Sukhera and Fasih Uz Zaman have been asked to record their statements on March 20.
Moreover, Pakistan Stock Exchange (PSX) Managing Director has also been requested to depute a concerned officer on March 20 to provide a copy of the documents which were considered by the stock exchange at the time of Agritech Ltd’s listing in 2010. Copy of the relevant regulatory framework applicable at that time especially with regard to the bar on listing securities having overdues has also been summoned by NAB.
On March 8, Prime Minister Shahid Khaqan Abbasi approved the appointment of Ali Jahangir Siddiqui, son of prominent businessman Jahangir Siddiqui, as Pakistan’s Ambassador to the United States.
Siddiqui has been serving Abbasi as a special assistant, advising the prime minister on economic and business matters and is chairman of JS Bank Ltd and son of stockbroker-turned-banker Jahangir Siddiqui.
He has previously been a director in Airblue — which is also connected to the prime minister’s family — Lucky Cement, Azgard Nine, and numerous other companies.
He will replace Aizaz Chaudhry in Washington, a career diplomat who previously served as a foreign secretary before being appointed the ambassador to the US.
A petition has also been filed in the Lahore High Court which contends that the appointee doesn’t have the prerequisite experience to serve as an ambassador to the US, hence the court should immediately declare Siddiqui’s appointment as null and void.
The petition also states that the appointment has been made without consulting the federal cabinet.
