Probing Rs20 bn financial crime: FIA begins crackdown on three sugar millers

ISLAMABAD: The federal government has formed a high powered combined investigation team to probe an alleged financial crime of over Rs20 billion involving three biggest groups running sugar mills in the country.

The CIT formed by head of Federal Investigation Agency (FIA) Wajid Zia has initiated legal actions against JDW Group of Companies, owned by PTI leader Jahangir Khan Tareen and Alliance Sugar Mills owned by RYK Group with major share of family of Federal Minister for Economic Affairs Makhdoom Khusro Bakhtiar and PML-Q leader Chaudhry Moonis Elahi.

The action is coming up in light of the federal cabinet's 23rd June decision which came in light of Sugar Inquiry Commission's recommendations, official documents revealed. The CIT, headed by Director FIA Dr Rizwan, has been empowered to start inquiry against alleged corporate/financial crime/benami business of JDW Group involving over Rs16.1 billion in light of Sugar Commission's recommendations.

"(Alleged) corporate fraud of Rs3.6 billion by JDW through overvalued purchase of associated company JKT Farming System Ltd and booking losses through it," read a document submitted before the federal cabinet on 23th June. “[Alleged] corporate fraud of Rs3.1 billion by JDW through investment in Faruki Pulp Ltd and booking impairment losses through it -- inexplicable transfer of Rs2.5 billion by JDW through non-arm's cash transfers to various sister entities via Amir Waris cash boy -- inexplicable transfer of Rs7 billion by JDW to Dherki Sugar Mills (non-arm's cash transfers) without true and full disclosure in the financial statement," added the official document exclusively available with this correspondent.

“[Alleged] corporate fraud by Al-Arabia Sugar Mills through GNC undisclosed (grantis) sales and accounting jugglery of reversal of sales -- inexplicable transfer of Rs1.195 billion by Al-Arabia to Ramzan Sugar Mills not disclosed in financial statements --inexplicable transfer of Rs402 million by Al-Arabia to Sharif Feed Mills and Sharif D. Farms since 2017-18," the document further read.

“Inexplicable cash transfer of Rs2.25 billion by Alliance Sugar Mills to Asad Hussain in (Ali Traders Gujrat) through CPVs not disclosed in financial statements (excess payment of Rs3.4 billion by Asad Hussain to the company)," official document revealed.