The federal government has initiated a crackdown against the sugar mafia involved in multibillion rupee financial scam and price manipulation.
The Federal Investigation Agency (FIA) chief, Wajid Zia, has formed a combined investigation team (CIT), tasked to probe the three biggest groups running several sugar mills in the country related to a financial crime worth Rs. 20 billion.
In the first phase, the CIT has started legal action against JDW Group of Companies and Alliance Sugar Mills. While the JDW Group is owned by Imran Khan’s close aide Jahangir Khan Tareen, the Alliance Sugar Mills have significant shares of the family of Federal Economics, Minister Makhdoom Khusro Bakhtiar and PML-Q leader Chaudhry Moonis Elahi.
According to an official document, the CIT crackdown has the legal protection from the premier-backed Sugar Commission, which has also approved an inquiry into alleged corporate/financial crime/Benami business of JDW Group involving over Rs. 16.1 billion.
Corporate fraud of Rs. 3.6 billion by JDW through the overvalued purchase of associated company JKT Farming System Ltd and booking losses through it. Corporate fraud of Rs. 3.1 billion by JDW through investment in Faruki Pulp Ltd and booking impairment losses through it — inexplicable transfer of Rs. 2.5 billion by JDW through non-arm’s cash transfers to various sister entities via Amir Waris cash boy — inexplicable transfer of Rs. 7 billion by JDW to Dherki Sugar Mills (non-arm’s cash transfers) without true and full disclosure in the financial statement.
The document noted that the Al-Arabia Sugar Mills manipulated accounts and showed a reversal of sales to hide Rs. 1.195 billion in financial statements.
Similar irregularities have been found in the accounts of Alliance Sugar Mills, JDW, and Ramzan Sugar Mills, it added.