ISLAMABAD: Irked over the undue delay of more than 20 days and deliberate concealment of relevant details/records by Securities Exchange Commission of Pakistan (SECP), the Standing Committee on Finance, Revenue and Economic Affairs of the Senate has now given 7 days to SECP to submit details of alleged corruption in Multan Metro Bus Project.
The 18.5 km-long metro bus project in Multan was inaugurated by former prime minister Nawaz Sharif in January 2017. The project was completed at a cost of Rs 28.88 billion.
Earlier, the SECP forwarded irrelevant papers about Multan Metro Bus project after an undue delay of more than 20 days to the Senate Committee when asked.
“It is, therefore, requested that the copies of all working papers, annexure, minutes of relevant commission meetings and complete information/reply in all aspects may kindly be furnished to this office within seven working days from the date of this letter as the matter have already been delayed considerably by SECP,” said a letter issued by Senate Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatisation chairman on October 27, 2017.
The Yabaite’s scam came to the fore after the regulatory authority of China raised eyebrows over the suspicious inflows into their accounts. The China Securities Regulatory Commission (CSRC) conducted a probe against Yabaite last year, as the company had claimed it had received the amount in lieu of work carried out in the Multan Metro Bus project in Pakistan.
In August this year, reports accused the Punjab chief minister of receiving more than Rs 10 million in kickbacks from the Chinese company, Jiangsu Yabeite Technology Co Ltd, in the Multan Metro Bus project, which the chief minister had rejected. It was also reported that the Sharif family allegedly transferred funds received as kickbacks in the construction of Multan Metro Bus project. And, the funds were allegedly transferred from Dubai, Mauritius and other locations.
Senate panel Chairman Senator Saleem Mandviwalla, in his letter, has sought complete information and documents regarding alleged corruption in Multan Metro Bus Project from the SECP. The Chairman sought from the SECP to response when SECP received the very first request from China Securities Regulatory Commission (CSRC) regarding Yabeite? Did that include details as reported in the new ‘like a so-called’ statement from the Capital Engineering Director and Chief Executive, a company owned by the Sharif family? Similarly, the chairman sought the complete set of all documents and correspondence exchanged with CSRC be provided including emails. Likewise, reasons of non-probing/forwarding it to the relevant agency like FIA despite the fact that company being not registered and addresses were given were fake as such SECP has no jurisdiction on individuals playing such a fraud on government?
“Is it true that very first request from CSRC indicated serious crimes including cross-border money laundering in multiple jurisdictions but still SECP opted not to refer it to the competent agency?” reads the letter.
Raising questions over the ability of SECP officer who dealt and kept custody of documents received from CSRC, Senate Panel chairman has also sought names of those officers and asked had they ever conducted investigations of white collar crimes? And, the reasons for keeping it to only three officers including the then chairman despite the fact that one was a lawyer and the other head of international affairs not having investigation experience, more the reasons for no action taken by the SECP for the last nine months.
Furthermore, is it true that for providing proper assistance to requesting authority the information received from requesting authority can be shared with other departments so that proper and accurate assistance is rendered? “But, SECP failed to do this and kept sitting on this for over eight months. These lead too many suspicions on SECP and intention behind this negligence,” said chairman’s letter to SECP.
Senate Standing Committee on Finance, Revenue and Economic Affairs chairman also asked, “Does SECP disclose facts related to the case while seeking information from Multan Development Authority (MDA) and other departments of Punjab? If not, why such serious allegations were not shared with the concerned provincial government? Again, is it a coincident that matter was referred to FIA only after suspension of Zafar Hijazi?”
It is worth mentioning here that the National Accountability Bureau (NAB) while taking a suo moto notice of corruption allegations against CM Punjab in the Multan Metro Bus project has ordered an enquiry into the corruption allegations against Punjab Chief Minister Shehbaz Sharif. The NAB took the decision to initiate an inquiry against Shehbaz Sharif on Monday, October 23, 2017, during a meeting of NAB’s director generals with Bureau Chairman Justice (retd) Javed Iqbal in the chair.
