Who is spreading misinformation about Chinese company issue?

ISLAMABAD: The documents and minutes of the meeting of SECP commission’s different meetings, available with The News, have revealed some new facts but the question arises that who is spreading misinformation about Chinese company’s alleged money laundering issue.

The commission was not only kept abreast about each and every detail of the case but gave approval of handing over the SECP findings of this case to CSRC, reveal the documents.

SECP official Bilal Rasool — the man whose name came from Supreme Court for Joint Investigation Team (JIT) constituted for Panama Papers Case — prepared minutes of the meeting of all SECP commission’s deliberations regarding the Chinese company’s case. The entire case of Chinese company’s money laundering was discussed in his presence and in fact he prepared the minutes of the meeting until he became the member of the JIT.

The News has obtained some new documents which present true picture of this case. These documents are clearly contradicting the facts being propagated in the media especially in electronic media that the SECP former chairman kept this case hidden from everyone including his commissioners. However, the minutes of the commission’s meeting reflect that the top officials of the SECP knew each and every development of this case.

The media is continuously propagating and presenting false facts of this case that the Punjab chief minister was allegedly involved in money laundering to China. According to these documents, it has been disclosed by Yabaite in its 2016 annual report that it completed the construction of the Multan Metro Bus project before December 31, 2015 making a profit of 201 million RMB. It is pertinent to note here that Multan Metro Bus Project was commenced in May 2015. The question arises here that how Yabaite completed the project in just five months whereas the fact is Multan Metro Bus project was completed in January 2017. Similarly, Yabaite was paid $19.58 million not $17 million by Capital Construction through 16 third party companies from Hong Kong, Dubai, USA, Malaysia and other regions in small sum.

As per the documents, the SECP commission meeting held on February 21, 2017 discussed the matter of Chinese company’s alleged money laundering. The SECP commission for the first time was informed that China Securities Regulatory Commission on December 16, 2016 wrote a letter to SECP and sought some documents and information in the matter of CRSC’s investigation of Yabaite Technology Pvt Ltd for its alleged disclosure violations. The CSRC informed the SECP through its letter that Yabaite remained a sub-contractor in Multan Metro Bus Project which was awarded to Habib Rafiq Pvt Ltd. The HRL then subcontracted some projects deliverables to Capital Engineering and Construction Co Ltd which further subcontracted the project to Yabaite. 

The CSRC letter written to SECP further stated that Yabaite in its 2016 annual report disclosed completion of the construction of the above project before December 31, 2015 making a profit of 201 million RMB. The CSRC letter further informed that as of March 2016, Yabaite was paid $19.58 million by Capital Construction through 16 third party companies from Hong Kong, Dubai, USA, Malaysia and other regions in small sum. The CSRS requested for SECP assistance in obtaining contract agreement and tender documents and information pertaining to Multan Metro Bus Project.

As per the document, the commission was informed that SECP in the light of CSRC assistance request, the SECP’s Corporate Database, CRO Lahore gathered information from HRL, Matrocon Pakistan Pvt Ltd, Chief Secretary Punjab, Pakistan Engineering Council, FBR and State Bank of Pakistan. The CRO Lahore directly comes under SECP commissioner Tahir Mehmood and all the relevant information sent to SECP were also copied to the said commissioner.

In another meeting of the SECP commission held on March 21, 2017, the SECP once again took up the matter and discussed the updates and development made in the Yabaite’s alleged money laundering case. The commission was informed that the SECP had received information from office of the Punjab Chief Secretary as well as it had issued follow up letters to SBP and FBR as both the organisations had not responded yet. Though State Bank of Pakistan informed the SECP that they were collecting the required information from banks and soon they would provide the required information. The SECP commission gave approval of sharing the information to CSRC. However the entire media is propagating that the former Chairman Zafarul Haq Hijazi kept the entire SECP into dark about this pertinent case and hid it from the other commissioners.

The SECP once again discussed the matter of Chinese company’s case in its commission meeting held on July 7, 2017. The documents available with The News reveal that the commission was informed that the CSRC approached the SECP once again about the Yabaite’s alleged money laundering case.

The CSRC in its letter written to SECP informed that the investigation of the case had been completed and the CSRC was now going through administrative proceedings in which the information provided by the SECP would be used as evidence. The CSRC further wrote in its letter that as the administrative hearing proceeded, Yabaite had submitted more documents in support of its alleged participation in Multan Metro Bus Project and the CSRC needed further assistance of SECP. The CSRC also enquired if the SECP had succeeded in contacting the Capital Construction or not.

The official documents further reveal that there is only one company resembling the Capital Engineering and Construction Company but it is dormant as it has not filed any tax returns.

The said company was registered in December 1998. However there is no such company with the name of Capital Engineering and Construction Company. The SECP officials visited the address of Capital Engineering provided by CSRC but no such company existed on the mentioned address.