Major forex dealers arrested: FIA to seek Interpol assistance in forex scam

[Naveed Yaseen]

FIA to probe forex smuggling scandal
By Ikram Hoti
ISLAMABAD: The FIA is taking over a foreign exchange smuggling investigation from Pakistan Customs after making arrests of a number of big shots in the foreign US dollar outflows scandal, say credible sources.

They said the FIA is also being handed over a Customs Intelligence (CI) case that suffered long for want of conclusive evidence on account of CI-ANF wrangle over seizure of multimillion-dollar consignment of heroin-producing material. Arrests are expected in this case too, said sources requesting not to be identified.

Gangs operating across Pakistan and China were last week busted after the Pakistan Customs seized substantial consignment of Pakistani currency a fortnight ago which was being transported from China in exchange for foreign currencies like US dollar, pound sterling and euro at Sost border. The smuggling of currency out of Pakistan contributed to a substantial crunch on the country’s forex reserves and jacked up their open-market prices over the past 3-4 months.

The seizure and the high-level inquiry, including interrogation of one such gang members, brought the relevant government agencies closer to deeper information on the racket, and the subsequent investigations resulted in the arrests on Saturday, say these sources.

Talking to The News spokesman for Federal Board of Revenue (FBR), Mahmood Alam said, “Pakistan Customs made the seizure and it is already conducting a high-level inquiry.”

The FIA officials pointed out that the gangs in China were only some of the operators that were buying up foreign currencies in Pakistan and smuggling them out of the country, not only to China but to India and Iran as well.

The other case FIA is taking over relates to the inconclusive inquiry into the identity and arrest of importers of huge heroin-producing material into Pakistan.

A gang of three Pakistanis had been unearthed that was behind the shipment of history’s largest consignment of heroin-making material caught by Pakistan Customs on March 23, 2008. The Senate Committee on Narcotics Control was also kept on board on this issue, but no inroads could be made into the gang network.

The Director General ANF and the Chairman FBR had to represent their respective sides at the hearing of conflicting claims over the seizure of a container at the Karachi Port.

The shipment was caught by the Customs with convincing evidence presented to the Senate Committee with photographs and the container’s original seal of import. However, the ANF-Customs wrangle continues to prevent conclusion of investigations that could do more.

One of the three men that formed the purported gang included Kamran Iskandari an importer-cum-clearing agent now in ANF custody. The other two were, Amir Khan and Randhawa.

It was a Pakistani company by the name of M/s Randhawa in Korea that shipped this, as the committee was told.

To the members of the committee, the ANF took the plea that Customs was attempting a cover-up, while the FBR pleaded that the ANF was trying to make an unjust claim on the seizure.

The consignment caught by Pakistan Customs contained hazardous materials worth hundreds of millions of dollars. Later, the Customs top authorities confirmed to The News that it was Sana Trading Company, Karachi, in whose name the shipment arrived. However, ìthis company disowned the shipment, only to further complicate the issue and to obstruct investigations.î

http://www.thenews.com.pk/top_story_detail.asp?Id=18247