The Federal Investigation Agency (FIA) has summoned PTI leader Jahangir Tareen and his son Ali Tareen tomorrow to respond to eight questions, with the relevant documents relating to JDW.
A press statement issued by the FIA said that it was investigating the PTI leader on allegations of “criminal breach of trust, financial fraud and money laundering by JDW and its related companies JKFSL & FPML, since August 8 2020”.
The FIA said that it wants to see the “complete inventory, with commercial invoices wherever applicable” of the plant, machinery and equipment, any fixed assets, stores, spares and loose tools and intangible assets owned by JKFSL as of November 20, 2013.
The agency has also sought the independent valuation report of JKFSL which was done by the audit company AF Ferguson & Co.
“Annual (audited) financial statement where a true a clear disclosure has been made by JDW (prepared by Kamran lqbal Yousafi FCA, KPMG-Taseer Hadi & Co Chartered Accountants) vis-a-vis choosing a pre-meditated 'non-arms length purchase price', reasons for not measuring the price at arm's length and the financial impact thereof (as required by Para 13 of 4th Schedule to Companies Ordinance 1984),” said the FIA.
The investigating agency also sought the “engagement letter” JDW had formed for the “valuation of JKFSL assets” by Unicorn International Survoyers.
Apart from this, the FIA wants the complete details of the 35,000 acres of farmland owned by the PTI leader. It added that the information must be “correct to acres, owned by or under lease of JDW clearly showing plot-size, location along with title and lease deeds”.
“MCIB-JDW documents (Engagement Letter, Correspondence & Bank's Reports) pertaining to engagement of JDW with MCB Investment Bank in 2012/2013) that suggested an injection of Rs2/3 Billion in FPML as disclosed by Jahangir Khan Tareen (then) CEO JDW in his statement given to FIA on April 9 2021,” said the FIA.
The agency has asked the PTI leader to share the details of foreign assets owned by him and his son in the UK and other countries, including the “family-owned 12-acres Hyde-House in New Hampshire”.
The FIA said that the house was mentioned by then CEO of JKFSL Ali Tareen in his statement given to FIA on April 9 2021. It has asked that the Tareens mention if the “assets have been declared to FBR or not, acquired by or on behalf of the then CEOs JDW and JKFSL or their family members”.
“The details should include complete description of assets, location, mode and cost of acquisition along with money trail,” said the FIA.
The FIA reminded the Tareens that they had failed to produce the documents despite “repeated summons and requests sent to JDW, JKFSL & FPML officers”. It added that the CEO/ CFO/ Co. secretary had informed the FIA that the transactions were with the PTI leader and his son.
The FIA said that Jahangir and Ali will have to appear before it on Tuesday, April at 10:00am.
The FIA warned that “non-compliance” of the “call up notice and continued failure to produce the relevant record” will lead the FIA to believe that the omission is deliberate. It added that the investigation “will [then] proceed on the basis of documentary evidence available on records”.
An FIA Lahore investigation team registered a case of alleged fraud of Rs3.14 billion on March 22 against Jahangir and Ali.
The FIR states that Jahangir allegedly transferred illegal shares worth billions of rupees to Farooqi Pulp Mills Limited (FPML), which is owned by his son and close relatives.
It says the transfers, especially after 2011-12, were "patently fraudulent investments which ultimately translated into personal gains" for Jahangir's family. Some Rs3 billion were invested and laundered through the same factory.
The FIR outlines when and how FPML was made back in 1991.
It includes sections 406, 420 and 109 of the Pakistan Penal Code with Section 3/4 of Anti-Money Laundering Act, 2010. Rana M Shawaz is the investigation officer.