Rs 73 billion money laundering scam in solar panels import unearthed
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Billions of rupees involved in a colossal money laundering operation have come to light during a customs audit conducted on two solar panel importers in Pakistan, according to official documents obtained by The Express Tribune. This illicit financial activity was orchestrated through an elaborate over-invoicing scheme executed by the entities Bright Star Business Solutions Private Limited and Moonlight Traders.
Following a comprehensive investigation subsequent to customs clearance, the Directorate of Customs Post Clearance Audit (South) has initiated separate legal proceedings against these two companies.
Reports suggest that these entities imported solar panels valued at Rs35 billion from China, but shockingly managed to funnel a staggering Rs73 billion in illicit funds overseas by artificially inflating the invoice values. What initially appeared to be a Rs73 billion worth of solar panels ended up being sold in the local market for Rs46 billion.
The investigation laid bare the non-operational nature of these two companies, uncovering serious violations and irregularities during the audit of their imported solar panels. This included the illicit transfer of Rs73 billion and the manipulation of the values of the imported solar consignments.
It was determined that Bright Star Business Solutions (Pvt) Ltd and Moonlight Traders had imported a total of 2,900 consignments of solar panels from China between 2017 and 2022, with over-invoicing amounting to Rs38 billion.
To further substantiate the import prices, the audit team delved into the sales tax records of the importers, revealing a significant disparity between the actual price per watt of the imported solar panels and what was declared in the goods declaration.
Bright Star claimed imports of solar panels worth Rs47.6 billion, while Moonlight declared imports of Rs25.4 billion. Both companies were deemed to be dummy entities, as their income tax returns failed to reflect the legitimate income required.
Furthermore, the investigation unveiled close ties between these two companies, as evidenced by bank statements indicating financial transactions between them. Remarkably, their offices were found to be situated in the same building at Dean Trade Centre in Peshawar Cantt. Astonishingly, these importers managed to shift Rs73 billion abroad, despite their financial records showing a mere Rs110 million in assets.
Source: Express Tribune link
