Responding to allegations levelled by former Sindh home minister and Pakistan People’s Party (PPP) estranged leader Dr Zulfiqar Mirza, Anver Majid has claimed that he owned only eight sugar mills and not 18.
Earlier in February 2015, Sindh High Court (SHC) had refrained Mirza from levelling “false and baseless” allegations against Majid, especially in interviews with TV channels, without backing up his claims with proofs. The directions came in response to an application filed by Majid against Mirza, Geo Tv, Dunya News, Ary Communications, Dawn News, News One and Pakistan Electronic Media Regulatory Authority (PEMRA).
He said that there are 37 sugar mills in the province out of which 33 are operative. He said that he owned Ansari Sugar Mills Limited, Bawani Sugar Mills Limited, Khoski Sugar Mills (Pvt) Limited, Tando Allayar Sugar Mill (Pvt) Limited, Chambar Sugar Mills (Pvt) Limited, Naudero Sugar Mills (Pvt) Limited, New Dadu Sugar Mills (Pvt) Limited and Larr Sugar Mills Limited.
He said that Bawani Sugar Mills was purchased in November 2010 by the Omni Group from the Dewan Group. “This sugar mill had been running at 20 per cent of its installed production capacity and owed approximately Rs 700 million in long term loans to various banks,” he clarified.
He said that the State Bank of Pakistan (SBP), formed a consortium of 15 financial and non-financial banking institutions and 10 leasing and modaraba companies to handle the re-structuring of the credit facilities of Dewan Group.
“This consortium approved the sale of Khoski Sugar Mills (Pvt) Limited (KSML) in the 4th Quarter of 2010 and gave the management of Dewan Group time to find a buyer,” he said, adding, “When Dewan Group failed to identify a potential buyer, the banking consortium approached and offered KSML to Omni Group, based on the credentials as well as successful track record of the Omni Group in successfully reviving sick industrial units in Sindh.”
“The Omni Group accepted the above offer and acquired KSML from the Dewan Group after settling Rs 450 million in favour of a banking consortium led by the National Bank of Pakistan (NBP). In May, 2012, the Omni Group purchased Chambar Sugar Mills (Pvt) Limited (CMSL) through the Sindh High Court (SHC). The mill had been lying incomplete and uncommissioned for over 22 years,” he claimed.
He said that Omni Group purchased the Naudero Sugar Mills, from the liquidator in October 2001 in an open bid and New Dadu Sugar Mills (Pvt) Limited previously known as Dadu Sugar Mills was purchase through the official assignee of the SHC in an open bid in May 2008.
He said that Larr Sugar Mills Limited, the most recent revival of a sick unit by the Omni Group, was closed since 2010 due to serious disagreement amongst the shareholders. “LSML owed approximately Rs 776 million to a consortium of banks including NBP, Bankers Equity, HBL, Saudi Pak and ZTB,” he claimed, adding, “In addition, LSML owed a total of Rs 422 million to the government in taxes and to its suppliers and sugar cane growers.”
He said that Mirza alleged that Sindh Bank Limited (SBL) was established by former president Asif Ali Zardari and the Sindh government to bankroll Omni Group’s predatory business practices. He claimed that Mirza made false allegations against him with respect to NBP, SBL and SBP in his TV interviews. He said that the group have always met their financial obligations in a timely manner and have paid approximately Rs 20 billion in principal, markup and pledge adjustment in the past three years.
“As a matter of fact, more than 12 banks and non-banking financial institutions of Pakistan, including private sector banks such as Standard Chartered Bank (Pakistan) Limited, Summit Bank Limited, Silk Bank Limited, Habib Bank Limited, United Bank Limited, Bank of Punjab, Bank of Khyber, Pak Libya Holding, Pak Iran Holding, Orix Leasing, NBP Leasing are lenders of the Omni Group,” he claimed.
He further said that none of the non-sugar businesses of the Omni Group (which comprise of a substantial portion of the Omni Group’s portfolio), are financed by Sindh Bank Limited.
