FBR uncovers Rs106 billion money laundering scandal in import of solar panels

Karachi: The Directorate of Customs Post Clearance Audit (South), under the Federal Board of Revenue (FBR), has exposed a massive money laundering operation worth Rs106 billion and filed cases against seven fake companies involved in the scheme.

The implicated companies include:

M/s Sky Linkers Trading Company, Peshawar

M/s Sky Linkers Business Chain (Pvt) Ltd, Peshawar

M/s Bright Star Business Solution (Pvt) Ltd, Peshawar

M/s Moonlight SMC (Pvt) Ltd, Peshawar

M/s Pak Electronics, Lahore

M/s Solar Site (Pvt) Ltd, Lahore

M/s Royal Zone (Pvt) Ltd

According to Shiraz Ahmed, Director of Customs Post Clearance Audit (South), the operation successfully dismantled a notorious money laundering cartel that funneled Rs106 billion through fraudulent imports involving these seven companies.

Investigations revealed that the fake importers engaged in over-invoicing during solar panel imports.

Despite declared import values of only Rs. 11.9 million as per income tax records, the syndicate laundered Rs106 billion.

The operation was led by Rab Nawaz and his brother Ahmed Nawaz, who utilized the fake companies as a front for their illegal activities. Of the laundered amount, Rs. 42 billion was deposited in commercial banks as cash to obscure its illicit origins.

The remaining Rs. 85 billion was declared as local sales under unverifiable identities.

Export documents from China revealed that the actual cost of the solar panels was $0.15 per watt. However, the panels were imported into Pakistan at inflated prices ranging between $0.35 and $0.70 per watt, representing over-invoicing of 235% to 500%.

Adding to the irregularities, the declared owner of one of the companies, listed as a salaried individual with an annual income of Rs. 250,000 and capital of Rs. 450,000, astonishingly facilitated solar panel imports worth Rs2.5 billion.

The investigation uncovered that the laundered funds were eventually transferred to four Chinese companies, also owned by Rab Nawaz, who was operating the fake network in Pakistan. 

The Directorate General of PCA, led by Chaudhry Zulfiqar Ali and Shiraz Ahmed, played a pivotal role in uncovering the fraudulent scheme. Special teams have been mobilized to ensure the prosecution of all involved parties.

This major breakthrough signifies FBR's commitment to combating financial crimes and dismantling illegal networks that inflict substantial economic harm.