FIA probing tax evasion of Rs80 bn in fuel supply to Nato

KARACHI: The FIA has started a probe to determine if Rs 80 billion tax has been evaded in fuel supply to NATO.

Adnan Afridi lodged a complaint with the FIA Karachi Zonal Office, which was put into the verification process on September 7, 2020. The investigation was entrusted to Inspector Fazal Muhammad of the Corporate Crime Circle. Later, the investigation was handed over to Inspector Attaullah Memon. After two months, he submitted a report, saying: “The complainant seems to be anonymous and his email is fake. So the investigation should be stopped.”

The advice to stop the investigation in just two months is strange as verifications and inquiries remain pending with the FIA for years. Later, on December 29, 2020, the zonal office was directed that the investigation should be transferred to the Federal Board of Revenue.

In the application submitted to the FIA, it was mentioned that the Pakistan State Oil first supplied fuel (jet fuel and diesel) to NATO forces in Afghanistan and deposited 17 per cent Customs Duty in the national exchequer. Then after using influence, this contract was given to Senator Taj Haider’s two companies – Alhaj Enterprises Pvt Ltd and Al-Noor Petroleum Pvt Ltd. Then ships carrying fuel from foreign countries started arriving in Pakistan and the cost of the fuel carried by a ship was shown as $3 million. According to an estimate, the above-mentioned companies brought 250 ships. If $3 million are multiplied into 250, it amounts to Rs 80 billion.

The complaint says that the Alhaj group owns offshore companies including Alhaj Energy, Alhaj Energy and Trade DMCC and Alhaj General Trading Company LLC. The complaint says the money received from the NATO under the fuel head was allegedly laundered to Dubai and the US. An Indian company has shares in the Alhaj group’s fuel storage terminal and both partners own two petrol pumps on the Shahrah-e-Faisal.

When the daily Jang contacted Taj Afridi, he said there were no FIA investigations against his group. He said the FIA had received a complaint from an unknown person and the law does not permit investigation on a complaint lodged by any unknown person. He said he got no notice from the FIA.

Director Sindh Zone FIA Amir Farooqi confirmed that first there were investigations in the Corporate Crime Circle, but after he took charge, he entrusted these investigations to the Anti-corruption Circle. And now the investigations are under way in the ACC Circle under Inquiry No 42/2021.