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SECP in contact with CSRC over Multan Metro issue: Senate body informed

SECP in contact with CSRC over Multan Metro issue: Senate body informed

ISLAMABAD: The Securities and Exchange Commission of Pakistan has informed the Senate’s Committee on Finance, Revenue and Economic Affairs that it was in contact with China Securities Regulatory Commission (CSRC) on the issue of violation of Chinese securities laws by a company related to Multan Metro Bus project.

The committee met here under the chairmanship of Senator Saleem Mandviwalla. The meeting was attended by senators Ilyas Ahmad Bilour, Ayesha Raza Farooq, Nasreen Jalil, Saud Majeed, Osman Saifuallh Khan and Mohsin Aziz, and representatives of SECP, Federal Board of Revenue (FBR), Auditor General of Pakistan (AGP) and Fiannce Division.

The SECP representative informed the committee that the Commission had also referred to Federal Investigation Agency (FIA) the case related to fake letters of Punjab chief minister and two senators written in favour of Yabaite Technology Company Limited, which was being investigated in China for alleged violation of securities laws.

The SECP official made it clear that it could not initiate any investigation in Pakistan unless the CSRC established the violation of its law linking companies or individuals in Pakistan.As reported by the CSRC, the Yabaite China claimed that it worked as a sub-contractor of Capital Engineering and Construction Co Ltd in the Multan Metro Bus Project.

The SECP representative said the Capital Engineering and Construction Co Ltd was not a company incorporated/registered with the SECP.

As per details provided by the CSRC, the SECP officials visited the address of the Capital Engineering and Construction Co in Pakistan and found no office there, he added.

The official said investigation into the affairs of Yabaite by the Chinese authorities was still underway, which the CSRC would share with the SECP.

Earlier, the committee expressed displeasure over the delay in investigation by the SECP into the matter.  Saleem Mandviwala said the SECP officials were not providing factual details about the issue and suggested that forensic details should be produced before the committee. He also suggested that all the five SECP members should be summoned for the purpose. However, other committee members differed on the matter.

Earlier, the AGP representatives briefed the committee that there were about 293 observations or audit paras recorded by the AGP office in the accounts of different departments for fiscal year 2016-17, which involved amount of about Rs 387 billion.

The committee decided to take audit as a single point agenda in its next meeting and also assigned senators Mohsin Aziz and Ilyas Ahmed Bilour to select the cases for discussion. It was decided that the committee would look into the cases of fraud and embezzlement in addition to those pertaining to misappropriation of over Rs 100 million.

The committee deferred discussion on an adjournment motion regarding the impact of third tire federal excise duty (FED) on tobacco products, which was violation of WHO’s Framework Convention of Tobacco Control (FCTC), besides increasing tobacco consumption in the country.The FBR representatives informed the committee that they had already enhanced the excise duty on tobacco to a considerable level.  On the issue of difficulties being faced by importers on the import of solar power generator system, the committee was informed by the FBR that no consignment was pending at ports.