Javed Afridi reacts to MG motors scam probe by FIA

ISLAMABAD: Javed Afridi, who helped brought Morris Garages (MG) into Pakistani market, has hit out at the automobile giants in the country after the Federal Investigation Agency (FIA) launched a probe into the import pricing of complete built-up (CBU) units of MG.

“For decades, Pakistani automobile consumers have been exploited by cartels that cornered them with low quality, boring models at exorbitant prices. Plus, buyers had to pay billions of rupees to get delivery of the very vehicles the price of which they had already paid,” the KP-based businessman said in a post on his social media account.

“As new entrants bring in exciting new models at far lower prices, instead of competition, we expect maligning campaigns and baseless rumours. While we know that competition is an unfamiliar phenomenon in Pakistan’s automobile industry, we invite everyone to join in a fair competition to serve Pakistani consumers with a bigger and better variety of vehicles at lower prices,” he added.

Javed Afridi statement came after a local newspaper claimed that the Federal Board of Revenue (FBR) was investigating a mega under-invoicing scam, showing the involvement of Afridi company.

According to the media reports, the company imported over 500 complete built-up (CBU) units from Shanghai China, predominantly MG GS Model, their highest specification model.

The declared customs value of $11,632 which is too low. The same model is being sold at a price above $27,000 in other countries.

“The under-invoicing evidence has also been shared with other line ministries and agencies for a thorough probe as this is inflicting billions of rupees financial loss the national exchequer,” the report said.

With over 400 CBU units already imported, the company has allegedly evaded over Rs1 billion in duty and taxes so far.