The Jehangir Siddiqui group has rejected a news report titled “SHC orders NAB to conduct investigation in NICL case” published in Pakistan Today on Dec 9, 2017.
According to a press statement, JS Principal Secure Fund I (“JS PSF I” or “the Fund”) was launched by JS Investments Limited (JSIL”), in the year 2009. A number of unit-holders purchased units of the Fund, including NICL, after reading and agreeing with the risks and restrictions of the Fund defined in the Offering Document approved by the SECP.
In JS PSF I, NICL purchased units for Rs 2 billion in the year 2009 with a pre-defined fixed term of 3 years and 6 weeks and as per the Offering Document early redemption before maturity of the Fund carried a pre-mature charge of 5 per cent (i.e. back-end load). NICL disinvested the amount before maturity period and therefore premature withdrawal charges were deducted. Despite NICL’s premature redemption, JSIL paid Rs two billion (principle investment) and further Rs 64 million as net gain to NICL.
NICL also holds an investment in another Fund of JSIL since 2000 and has earned significantly on this investment, as well.
NAB was investigating NICL for all its investments in land and wanted to investigate NICL’s early redemption in JS PSF I. JSIL fully co-operated with NAB and provided all the relevant details and information but NAB sought details not related to NICL. Therefore, JSIL had filed the application on which Honorable High Court directed JSIL to provide all information relating to NICL. Resultantly, JSIL is now providing all information sought by NAB.
It is clarified that as per the order of the Honourable Court it is NICL which is under investigation and not JSIL. A section of the press has distorted this order, creating the wrong impression that JSIL is under investigation. The truth, as stated above, is that JSIL is not under any investigation and only NICL is being investigated for which JSIL is extending full assistance to NAB in unearthing any wrongdoing by NICL or its Chairman, on the relevant time.
