No evidence of Yabaite’s business in Pakistan, says Chinese regulator

ISLAMABAD: The official statements of SECP and CSRC have confirmed that based on Chinese regulator’s existing investigation, they do not have any evidence showing that Yabaite has any business transactions with claimed Pakistan entities or natural person.

The CSRC official letter dated August 30, 2017 which it sent to the SECP has clarified and confirmed two very important aspects which were being propagated and wrongly reported in the electronic media.

The media was continuously reporting that the Chinese officials had visited Pakistan twice and recorded the statement of the so-called CEO of Capital Engineering and Construction Company, Faisal Subhan.

However, not only the SECP, but also the China Securities Regulatory Commission (SCRC), has confirmed that Chinese never visited Pakistan on this count proving majority of the Pakistani electronic media and top anchors wrong.

The CSRC official letter sent to the SECP also clarified that “during the investigation period of this case, the CSRC enforcement staff have never inquired, nor attempted to inquire local officials from Pakistan, or any Pakistani citizens. Even if they may want to obtain inquiry records from Pakistani citizens in future, they would request for this procedure to be conducted by the SECP as assistance under the IOSCO MMOU.”

Finally, they have also confirmed that “based on CSRC’s existing investigation findings, they do not have any evidence showing that Yabaite has any business transactions with claimed Pakistan entities or natural person”.

The CSRC letter further states that “currently this case is still ongoing and they may not share any information before the final decision of Administration Sanction is reached and made public, and considering the confidentiality and independent nature of CSRC investigation process, they may not share investigation report at any stage.”

The SECP in its statement issued on August 30, stated that based on the above confirmations received from the CSRC, and to ensure complete transparency and a thorough independent investigation into the affair from a Pakistani standpoint, it has today sent letters to the FIA and Government of Punjab along with the information/documents pertaining to SECP (which have already been shared with the Ministry of Finance) with the advice to investigate the matter independently.

However, it is pertinent to mention here that the Ministry of Finance wrote a letter to the SECP after the information of Chinese company case were leaked to the media to hold an inquiry to ascertain who leaked the sensitive information to the media. But the SECP instead of holding an inquiry sent the entire case file to the Finance Ministry as its reply.