FIR lodged against NGO New Madina Welfare Society for fiscal fraud

KARACHI: MCC Appraisement East has lodged an FIR against M/s New Madina Welfare Society for submitting bogus and fabricated commercial invoice and donation certificate to get undue benefit of exemption on import of skimmed milk powder.

M/s New Madina Welfare Society imported a consignment of skimmed milk powder valuing $500 from Belgium claiming exemption under Special Provision 9913, which is meant for gifts and donations received by a charitable non-profit making hospital or institution.

The importer also submitted invoice and a donation letter from supplier M/s Solarec of Belgium, which was found to be fake on verification. The importer also mis-declared the value of the goods and submitted fake documents including invoice and donation letter to support their claim of exemption.

In this manner, the accused importer evaded legitimate government revenue to the tune of Rs11.044 million. An FIR is lodged and investigations are underway.

Information was passed through Collector Nadeem Memon and Additional Collector Rizwan Bashir to Deputy Collectors Rana Arsalan, Amanullah Tareen, who formed a team headed by Principal Appraiser Ibrahim Khan to scrutinize the case. It was all due to research of Senior Preventive Officer Malak Hashim, that such a scam was detected. FIR is lodged on the complaint of AO Ilyas Ghichki.

Last year Customs made a similar case against M/s Sahara Public Rights Welfare, but on the point of non-jurisdiction, Court ordered to release the goods.

Despite being registered as non-profit organization, M/s Sahara Public Rights Welfare was found involved in importing commercial merchandize in commercial quantities and availing exemption of Customs duty and allied taxes under Special Provision 9913.They had also submitted fake documents in support of their claims.

Non government organizations (NGOs) have been involved in money laundering and terror funding. Foreign funding is like oxygen to the NGOs operating in the country and to choke resources supply to terrorism, government should take practical steps to block foreign funding to NGOs.


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