Monday, August 24, 2009

FIA wants to investigate all 23 forex companies

* Addl DG says inquiries will help stop ‘white collar’ crime * Senate body says FIA can launch investigation after obtaining proofBy Sajid ChaudhryISLAMABAD: The Federal Investigation Agency (FIA) on Tuesday demanded the State Bank of Pakistan (SBP) allow investigation of all 23 foreign exchange companies in the country to discourage them from engaging in illegal practices.During a meeting of the Senate Standing Committee on Finance chaired by Senator Ahmed Ali, Federal Investigation Agency (FIA) Economic Crime Wing Additional Director General (ADG) Irfan Nadeem Syed requested SBP Governor Syed Salim Raza to allow the FIA to proceed with the investigation. He said the investigation would ensure that the exchange companies refrained from indulging in “white collar” crime.Discussing the investigation into the Khanani and Kalia Exchange Company, Syed informed the committee that a detailed challan, comprising 250 pages of the FIA’s findings, had been submitted to court. He said the evidence had been sufficient for the court to reject the bail pleas of the accused. He claimed it was clear the company had been involved in organised crime and had indulged in affairs that were outside its purview and in violation of law. He said the investigation had taken seven months and had covered all aspects of the activities carried out by the company.Syed said the FIA was committed to curbing organised crime from society and would fulfil the country’s expectations. He also informed the committee that an interim challan of the investigation into the affairs of the Sahara Exchange Company had been submitted in court, adding another investigation was underway to examine the ZARCO Exchange Company.The ADG informed the committee that the preliminary investigation had revealed the owner of ZARCO owned property worth billions in the US. He said the FIA was also examining the company’s tax payments, adding it would determine if complete taxes had been paid on funds transferred abroad.Only with proof: In response, the committee said the FIA should not be allowed to investigate companies without sufficient proof. However, FIA officials maintained there was sufficient evidence of the exchange companies involvement in unfair practices for an investigation to be required. Meanwhile, an SBP official told the committee that prior to the investigations, the exchange companies had propelled the rupee-to-dollar exchange rate to Rs 85. He said this rate had come down once appropriate action had been taken.Regarding the suspension of the foreign exchange companies’ licences, the committee directed the SBP and the FIA to make coordinated efforts to ensure the elimination of all illegal practices.

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