Saudi Investors of Karachi Electric File Petition Against FIA for Alleged Inaction
Saudi investors of Karachi Electric, represented by White Crystals Limited, have filed a writ petition with the Islamabad High Court (IHC) requesting action against the Federal Investigation Agency (FIA) for their perceived inaction in response to a complaint regarding the potential misappropriation of Rs10.5 billion of foreign investors’ funds. The investors are seeking a judicial order to compel the FIA to initiate a thorough investigation.
White Crystals Limited, a subsidiary of the Saudi conglomerate Aljomaih Group, holds a substantial stake as a foreign investor in Pakistan. They allege that there have been irregularities in the handling of sale proceeds from an investment firm in Pakistan. In 2021, Infrastructure and Growth Capital Fund LP (IGCF) sold a significant portion of its interest in the firm to Busicentco Incorporated for approximately Rs10.5 billion. However, the investors, including White Crystals Limited, claim that these funds were transferred to a bank account held by Cynergico Mu Incorporated (C-Mu Inc.), a Mauritian entity partially owned by IGCF-OGL, rather than being held for the benefit of IGCF’s limited partners.
The investors assert that the funds were wrongly portrayed as the property of C-Mu Inc., potentially causing harm to IGCF investors. They allege that the application submitted to the State Bank of Pakistan (SBP) for repatriation of the funds was inexplicably withdrawn under instructions from C-Mu Inc., jeopardizing the interests of IGCF’s limited partners.
The transferred funds are currently held by DW Pakistan Private Limited (DWPL) in a bank account. The investors have raised questions about the legitimacy of the funds being held in DWPL’s account and the withdrawal of the repatriation application without informing the limited partners. They suspect potential wrongdoing in the mode and manner of the transfer to DWPL and point to inaccuracies and incomplete information provided by the IGCF manager, which is now under the control of Shaheryar Arshad Chishty.
White Crystals Limited lawyers claim to have previously reached out to the CEO of a bank in Pakistan for answers but received no response. They filed a complaint with the FIA in August 2023 after failing to receive a satisfactory resolution. The investors allege multiple offences, including criminal misappropriation of property and cheating. They argue that the FIA has the authority to investigate such offences under the Federal Investigation Agency Act 1974. They also suggest that if the transfers violate SBP regulations or involve offences, they could potentially be considered money laundering under the Anti-Money Laundering Act 2010.
Seeking redress and justice, White Crystals Limited has approached the IHC to intervene and compel the FIA to consider their complaint and launch a comprehensive investigation. The writ petition filed with the IHC requests appropriate directives for swift and impartial action from the FIA. A spokesperson for the FIA confirmed that they have received the complaint and reminders from White Crystals Limited’s lawyers.
Shaheryar Arshad Chishty, the majority owner of DWPL, stated that he has not seen the IHC petition yet and cannot comment on the matter.
More detail via GEO TV here… ( Image via GEO TV )
