ISLAMABAD: The Directorate General of Post Clearance Audit unearthed a mind-boggling mega scandal of financial fraud, mis-declaration and smuggling in which ghost construction companies with the assistance of black sheep of customs department deprived the national kitty of billions of rupees, it is learnt.
As per investigation report, hundreds of used vehicles for construction purposes were got cleared through Lahore dry port taking undue benefits by using the name of ghost construction companies during past two years.
According to law, the facility is available to companies, which are running construction projects and they can import used vehicles to fulfil their needs.
The PCA in its initial investigation report has alleged officials of Lahore Customs Appraisement for their involvement in clearance of prime movers by breaching legal process, under which a prime mover of less than 380 horsepower cannot be imported.
But, these fake companies imported the vehicles having horsepower less than the described and sold them in local market by earning profit of billions of rupees. The illegal business was being run from past two year in an organised way.
Sources claimed that many high ups started efforts to save the mafia of construction companies and specific customs officials, adding that a pressure was being developed on director general of PCA to hand over the investigations of the case to blue-eyed officials.
For the first time in the history of PCA, the department using its legal authorities in June 2016 ordered to impound eight used prime movers of JP Construction and Trading Company (NTN 4332595-5) and H Ali Construction Company (NTN 4375297-7) on the charges of fiscal fraud, mis-declaration and smuggling. The vehicles had been given in the custody of National Logistic Cell (NLC).
Now, the PCA has forwarded the reports of the cases to Lahore Customs Adjudication in which not only importers but also customs officials have been alleged for irregularities. In the report, the PCA has imposed allegations of fiscal fraud, mis-declaration and smuggling, as under Import Policy Order 2013-15, the prime movers with less than 380 horsepower cannot be imported.
Earlier, the Customs Appraisement highlighting the illegal import of prime movers having horsepower less than 380 sent a case to Customs Adjudication, but the report was withdrawn later on undisclosed reasons and the said movers were released without any order, the report states, adding that the customs officials did not explain any reasons and give reference of law in clearance of the prime movers.
It is mentioned in the PCA report that when construction companies, including JP and H Ali were asked to provide details of financial status, imports, employees and income, they did not file any reply. Later, the PCA officials gathered information through its sources reaching a point that the said companies are not more than the ghost companies.
According to the report, the Supreme Court of Pakistan by upholding the decisions of the Sindh High Court had directed that the construction companies could import necessary vehicles only for their ongoing projects.
The report also alleged that the customs officials cleared the vehicles without keeping in view the old and current performance of the companies.
The Customs Today learnt that the construction companies taking undue benefits in guise of import policy imported various trucks, cranes and other vehicles, which were sold in local markets. It is also learnt that further investigations by the PCA will unveil that this scandal prevails not only in Lahore but also in Karachi.