- Siddiqui is named in 19 inquiries pending at NAB, FIA, SECP
ISLAMABAD: Ali Jahangir Siddiqui, Pakistan’s ambassador to the US and a business tycoon, is allegedly named in 19 inquiries pertaining to corruption, money laundering, and violation of the State Bank of Pakistan’s rules, Pakistan Today has learnt.
Siddiqui, son of Jahangir Siddiqui, is accused of embezzlement of at least 55 billion rupees and a probe regarding this alleged corruption in progress with the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), and Securities and Exchange Commission of Pakistan (SECP).
Documents available with Pakistan Today quoting inspection reports of the NAB, SECP, FIA and SBP disclosed that Siddiqui allegedly caused over Rs55bn loss to the national exchequer. They further stated that that various departments, including NAB, FIA, SECP and SBP, are conducting inquiries against Siddiqui and others.
The inquiries in which Ali Jahangir Siddiqui is named include collection of Rs430 million worth bonus from Jahangir Siddiqui and Company Ltd (JSCL); Rs 255 million loss to the National Insurance Company Limited (NICL) due to investment, insider trading of Azgard Nine Limited (ANL); stock market fraud; Agritech share-holders scandal; purchase of Italian company Monte Bello SRL; insider trading of Pakistan International Container Terminal (PICT) shares and money laundering; illegal relocation of CNG stations of Sprint Energy; financial scandal of Employees Oldage Benefits Institute (EoBI); fraud in EFU shares; Federal Employees Benevolent Funds (FEBF); Sindh Social Relief Funds; illegal issuance of right share of Rs 22 million of the JSCL; fraud in ICI shares; obtaining two licenses of banks in violation of the rules of the SBP; fraud in the value of the shares of CDF; wrong use of powers in the JS Bank; and fraud in the minimum need of capital to the JS Bank.
Similarly, the JS Group in connivance with the management of the National Bank of Pakistan sold 100 million shares of the ANL at price of Rs24/share higher than the market price.
Similarly, the SECP has already unearthed a fraud of 20.55 per cent shares in the ANL; the company (ANL) faced bankruptcy in 2010 as it failed to clear its loans worth billions of rupees. The decision to sell the shares of ANL was made under a master restructuring and credit agreement with a group of banks to come over the bankruptcy of the company.
Likewise, Ali Jahangir Siddiqui allegedly benefitted with a bonus worth Rs430 million from the JSCL while small shareholders of this company (JSCL) were given only 70 paisa per share.
Moreover, the JS Group established different subsidiary companies and allegedly involved in the increase and decrease of share’s value and also deceived the State Bank’s regarding the limit of capital.
Furthermore, the SBP in its seventh annual general meeting recommended the SECP to conduct an inquiry by disclosing the presence of fake small shareholders. Also, the Transparency International also requested the chief justice of Pakistan to form a joint investigation team (JIT) to probe the scam.
Well-informed sources said that Prime Minister Shahid Khaqqan Abbasi might face investigation over appointing his business partner Ali Jahangir Siddiqui as the envoy to the US. Though the speed to conclude these inquiries by these departments against Ali Jahangir Siddiqui and Jahangir Siddiqui so far remained very low, the NAB and other departments have tightened the noose around Siddiqui and stepped up the process to conclude these inquiries.
The sources claimed that former NAB chairman Qamar Zaman Chaudry had shelved the inquiries against JS Group allegedly because of pressure from the PM Secretariat, adding that the NAB had filed reference in the accountability court against all the accused, except Ali Jahangir Siddiqui.
It is relevant to mention that NAB Lahore has summoned Ali Jahangir Siddiqui and chief executive officers (CEOs) of five companies to record statements in ANL scandal and purchase of Italian company on, 20, 21 and 22 March 2018.
Reportedly in 2016, the 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.
