The Senate Standing Committee on Finance and Revenue called for a comprehensive audit of all solar panel imports since 2018, following revelations of Rs70 billion in alleged under- and over-invoicing by two importers. The probe highlighted significant financial irregularities and negligence involving commercial banks.
According to a news report, the subcommittee expressed dissatisfaction with existing investigations and raised fresh concerns over over-invoicing and dubious cash transactions by Bright Star Business and Moonlight Traders, two major companies at the center of the scandal. Between 2018 and 2022, the companies reportedly conducted transactions worth Rs106 billion, much of it in cash, with questionable import practices raising serious red flags.
Senator Mohsin Aziz questioned how such large-scale irregularities went unnoticed during a time of stringent import restrictions aimed at stabilizing the economy. “How did these companies manage massive single transactions, bypassing scrutiny that would normally flag far smaller amounts?” he asked.
The transactions, officials revealed, were conducted using accounts at Dubai Islamic Bank and Askari Bank in Lahore. Bright Star’s transactions alone totaled Rs2.7 billion in 2018, escalating to Rs5 billion in 2019, Rs1.5 billion in 2020, and Rs2.5 billion in 2022. Similarly, Moonlight recorded a turnover of Rs7.9 billion, with substantial amounts handled in cash.
The investigation also uncovered discrepancies in import values. Some solar panel containers were cleared at rates significantly above market value, while others were inexplicably undervalued. Senator Shahzeb Durrani criticized the Federal Board of Revenue (FBR) for failing to detect these discrepancies earlier.
The Financial Monitoring Unit (FMU) and FBR officials raised concerns about money laundering linked to these transactions. Around Rs46 billion in suspicious transactions were flagged, many involving cash payments.
The State Bank of Pakistan confirmed it had penalized the banks involved for their negligence. Askari Bank was fined Rs40 million, while Dubai Islamic Bank faced a Rs27 million penalty for failing to report the irregularities promptly.
While three individuals linked to the scandal have been arrested and are currently out on bail, Senator Aziz emphasized that numerous questions remain unanswered, including the full extent of financial wrongdoing in solar panel imports.
The Senate committee has recommended a full audit of all solar panel imports between 2018 and 2022, stricter monitoring of financial transactions in the sector, and a thorough investigation into the role of commercial banks in facilitating these irregularities. The subcommittee stressed the urgency of addressing the gaps in oversight to prevent future scandals.
