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Thursday March 28, 2024

AKD Securities officials violated EOBI Investment Rules

By our correspondents
January 10, 2016

KARACHI: The FIA has forwarded a report to the top officials on the accused from AKD Securities Limited and their role in causing a loss of millions of rupees to the national exchequer.

According to the report prepared by FIA Corporate Crimes Circle, the EOBI bought 17,350,000 shares of M/S Amtex Limited in two phases on August 16, 2010 and August 27, 2010 in two phases, with the approval of a two-member committee comprising the then EOBI chairman Zafar Abbas Gondal and DG (Investment) Kanwar Khursheed Wahid.

The report says Gondal, Wahid, Convener (Investment Committee) Muhammad Iqbal Dawood, DG (F&A) Mirza Imtiaz and Director (Finance) Muhammad Ayub Khan violated the Senate standing committee and the Rule 3 (f) of EOBI (Investment) Rules 1979.

It says the FIA has arrested AKD Securities Limited CEO Muhammad Farid Alam, Director Tariq Adam Ghummar and Director Muhammad Iqbal, who have been accused of facilitating in buying the shares at higher prices and selling them at lower rates for the EOBI.

Hina Junaid Balma Gumwala – another AKD Securities Limited director – is also involved in the crime but hasn’t been arrested yet.

The aforementioned AKD Securities Limited officials, the report says, violated third III Schedule of Brokers and Agents Registration Rules 2001.

According to the FIA, the services of various brokerage houses were hired because of the legal complications in selling the Amtex shares in phases directly to the EOBI. They were: AKD Securities Limited, Amcap Securities, Pearl Securities, Investment Capital Market and Foundation Securities.

It was revealed during investigation that Amcap directors – Haji Iftikharuddin, Faiza Khurram, Sajida Shehzad and Sonia Nadeem – and their Amtex counterparts – Khurram Iftikhar and Shehzad Iftikhar – were relatives and that the members of the same family occupied the offices in two separate brokerage houses. Later, the proof regarding Maryam Shehzad and Naveed Shehzad being accomplices in the crime was also obtained.

The probe also led to the fact that Khurram Shehzad was the main character in selling the shares to the EOBI and a front man of the EOBI DG (Investment). Khurram’s wife Maryam and brother Naveed were also involved in the matter.

The report says Khurram, Maryam and Naveed violated the Section 187 (j) of Companies Ordinance 1984. Others violating the Section 187 (j) of Companies Ordinance 1984 are: Amcap Securities CEO Abdul Rauf Ghani and directors – Iftikharuddin and Sonia – as well as Amtex CEO Khurram Iftikhar and directors – Shehzad Iftikhar, Nadeem Iftikhar, Zafar Saleem, Faiza Khurram and Nusrat Parveen.

The top FIA officials had briefed Interior Minister Chaudhry Nisar on the matter the other day, after which he issued the directives to complete the probe as soon as possible.

Resultantly, FIA Director (Sindh) Shahid Hayat ordered the Corporate Crimes Circle to make progress in the case.