KARACHI: In an unprecedented detection, the Post Clearance Audit (PCA) South has unearthed illegal pilferage of confiscated goods from two sea ports of Karachi.
Led by DG PCA Chaudhary Zulfiqar Ali and Director PCA South, Sheeraz Ahmed, the PCA team uncovered this first-of-its-kind scam that underscores systematic manipulation to misappropriate confiscated / government owned goods valued at a staggering Rs 83 million.
Based on its intelligence network, PCA South got a crucial tip-off that a cartel of unscrupulous importers was involved in pilfering offending goods (machine parts, electronic items, aluminum sheets etc.) from the sea ports which had been “confiscated” upon adjudication by the adjudicating authorities.
PCA’s initial scrutiny of customs data uncovered three fraudulent importers M/s Sadiq Jahan Lahori & Company, M/s Glowell Industries (Private) Limited, and M/s Znz Brands who suppressed and defied the adjudication orders to misappropriate confiscated goods in league with port authorities and customs functionaries.
The fraudulent removal of confiscated goods took place at the Karachi International Container Terminal (KICT) and Qasim International Container Terminal (QICT) operating under the Customs Appraisement Collectorates of West and Port Muhammad Bin Qasim, Karachi.
The Adjudicating authorities confiscated the offending goods in 3 import GDs; while granting the importers the option to redeem confiscated goods upon payment of redemption fine totaling Rs 28 million, in terms of SRO 499(I)/2009, dated 13.6.2009. The importers fraudulently obtained possession of “confiscated” goods without settling the redemption fines, thus stealing government property from the ports.
This clandestine operation resulted in the loss of government owned goods worth Rs. 83 million. PCA authorities apprehend that the scope of this intricate scam can be much wider and detected three cases are merely a tip of the ice berg. The sophisticated fraud poses challenging questions about port security and compliance, pointing to serious systemic flaws.
PCA South has lodged 3 FIRs implicating importers M/s Sadiq Jahan Lahori & Company, M/s Glowell Industries (Private) Limited, and M/s Znz Brands, besides also implicating their accomplices and clearing agents i.e. M/s Ashraf Forwarding Agent, M/s Nasir Steel Co, and M/s Sial Enterprises.
Accused Usman Tariq, Director of M/s Glowell Industries has been arrested, while two PCA teams have been mobilized to arrest the remaining fraudsters and their accomplices, who connived in the organized theft. PCA South’s efforts in detecting this intricate fraud reaffirm their commitment to upholding integrity within customs and port operations. The authorities have vowed to tighten audit controls and enhance compliance monitoring with full force of the law.
The unearthing of this intricate fraud serves as a glaring testament to the complexities and challenges inherent within port operations and customs clearances. It also highlights the necessity for heightened vigilance and reformative measures to safeguard governmental assets from falling prey to scurrilous activities.
With special teams mobilized and the investigations accelerating, the FBR is determined to bring all culprits to justice. This scandal serves as a stark reminder of the lengths to which criminal entities can go to rob the national exchequer. Despite pressures and dearth of logistics, the PCA South’s stern action highlights its unwavering resolve to take to task fraudulent elements to safeguard national economy. Their stern actions are aimed at sending a strong message to potential fraudsters to preempt recurrence of such crimes in future.
An official said Post Clearance Audit (PCA) is the future of Pakistan Customs. Director Sheeraz Ahmed has organized the Directorate of PCA in a very professional manner and the team has developed a very efficient synergy. Earlier, PCA was considered a bad posting and officers/officials were reluctant to be posted at PCA. PCA is now lodging FIRs and a writ of PCA has been established on traders.