Probe sought into the fraud import and export of gold

The federal tax ombudsman, Mushtaq Sukhera, has directed the Federal Investigation Agency (FIA) to initiate criminal proceedings against those involved in a scam of fraudulently importing and exporting gold worth over Rs 5 billion.

The letter, Sukhera wrote to the director general of the FIA, a copy of which is available with Geo.tv, reads that the Federal Board of Revenue (FBR) should order its chief collector North, Central and Enforcement South to initiate departmental inquiries against officers involved in the scandal, which has caused a huge loss to the national exchequer.

Sukhera directs that disciplinary action be taken against those found involved in the illegal import and export, in violation of SRO 266(1) 2001 and SRO 760(1)2013 under the custom’s rules.

In a separate letter, the ombudsman also asked the ministry for commerce to constitute a committee comprising of representatives from the State Bank, the FBR and the Trade Development Authority (TDAP) to review the relevant laws governing the import and export of gold, such as the Gold Jewellery and Gemstones Order 2001, and the Precious Metals Jewellery and Gemstones Order 2013, to plug its loopholes. The report, he writes, should be presented in 45 days.

Those privy to the development, tell Geo.tv, that Sukhera has separately taken notice of the fake export of gold, jewellery and gemstones by private companies in the country. Moreover, customs collectors in Peshawar and Karachi were found involved in money laundering through gold export and misstating the export of gold.

According to details, 22 cases were identified from the Peshawar customs collectorate of illegally importing and exporting gold and other precious stones worth more than Rs1.36 billion. While in Karachi, 249 incidents of major fraud of gold worth Rs48 billion were uncovered.

Several private companies were also found involved in the sham export of gold worth Rs18.23 billion.

Further, a rebate of Rs6.69 was claimed on the export of gold, which was never undertaken. The ombudsman in his judgement observed that five exporters were repeatedly failed to remit foreign exchange. “It is rather strange that the collectorates have failed to recover the adjudged amount of fine imposed against the clearing agents, who were otherwise licensee of the department,” Sukhera wrote. He also questioned why their departments have not initiated a process to recover the money.