ISLAMABAD – In meeting of the Senate sub-committee of the Senate Standing Committee on Finance and Revenue led by Senator Mohsin Aziz, fresh revelations have emerged regarding a massive over-invoicing in the import of solar panels, involving transactions worth billions of rupees. The meeting examined the involvement of two major companies, namely Bright Star Business and Moonlight Traders, in financial irregularities.
During the meeting, it was revealed that transactions from these companies raised serious red flags, with Bright Star and Moonlight, two major players, at the center of the issue. These companies are accused of conducting suspicious transactions worth Rs106 billion between 2018 and 2022, with a substantial portion of these dealings made in cash. Senator Mohsin Aziz raised alarming questions about how companies, operating under tight import restrictions, were able to conduct such massive transactions. “How is it possible that companies managed to make huge single transactions when ordinarily far less amount raises red flags.” Aziz inquired.
It was revealed that the companies in question—particularly Bright Star and Moonlight—used accounts opened in Lahore’s branches of private banks carry out transactions for import of solar panels. “Bright Star alone made over Rs2.7 billion in transactions in 2018 and continued making payments, including Rs5 billion in 2019, Rs1.5 billion in 2020, and Rs2.5 billion in 2022,” said the officials. Similarly, Moonlight reported Rs7.9 billion in turnover, with a significant amount in cash. The Committee also uncovered multiple instances where solar imports were cleared at highly inflated values. “Some solar containers were cleared at lower than market prices, while others were cleared with inflated values. The FBR should have been alerted to this discrepancy much earlier,” noted Senator Shahzeb Durrani, a member of the committee.
The Financial Monitoring Unit (FMU) and Federal Board of Revenue (FBR) raised concerns about the nature of these transactions. FBR officials confirmed that around Rs46 billion in suspicious transactions were flagged, many of them involving cash payments, which raised serious concerns of potential money laundering. Senator Durrani expressed deep frustration over the delayed response to these financial irregularities. “This is a high-level example of money laundering, but what’s troubling is that we are only now beginning to connect the dots,” Durrani stated. He further added, “What action has been taken, and why has it taken so long to address this issue?” The State Bank of Pakistan (SBP) and the respective banks involved have also come under scrutiny. State Bank officials revealed that penalties were imposed on private banks for their negligence in whole fiasco. One bank was fined Rs40 million, while the other bank faced a penalty of Rs27 million for their failure to report the financial irregularities in a timely manner. In response to these violations, Senator Aziz remarked, “We are now hearing of fines and penalties, but what concrete action has been taken against actual perpetrators of scandal?”
The subcommittee has called for a thorough investigation into the actions of the companies and the involved financial institutions. As of now, three individuals have been arrested in connection with the scandal, though they are currently out on bail. However, many questions remain unanswered.
Senator Aziz stated, “We are still waiting for concrete evidence that will confirm whether money laundering to the tune of Rs70 billion actually occurred. The delay in uncovering these transactions is deeply concerning.”
As part of the ongoing inquiry investigation, the Senate Finance Sub-Committee has made several key recommendations:
– A full audit of all companies involved in solar imports from 2018 to 2022.
– Enhanced monitoring and regulation of financial transactions involving solar panel imports.
– Immediate investigation into the role negligence of commercial banks.
– Stronger enforcement mechanisms to prevent money laundering and corruption in the solar import sector.
The Senate Finance Sub-Committee’s meeting on the over-invoiced import of solar panel has uncovered troubling details, but many questions remain unanswered. The committee has vowed to continue pressing for answers and to ensure that action is taken against the culprits involved in these suspicious transactions. The findings highlight the urgent need for stronger regulation in Pakistan’s banking import sector to prevent further financial irregularities.
Senator Aziz concluded, “The time has come for us to hold those responsible accountable, and we will not rest until the truth is fully exposed.”
