Sitara Chemical Industries Limited (SCIL) has clarified that allegations circulating in media reports regarding an FIR registered by the Federal Investigation Agency (FIA) against its Chief Executive Officer primarily relate to the affairs of another company and not Sitara Chemical. The company said any suggestion that the allegations concern its own operations is factually incorrect.
In a notice submitted to the Pakistan Stock Exchange (PSX), the company said no competent court or authority has reached any findings or determination against either Sitara Chemical or its CEO. It categorically denied the allegations insofar as they relate to the company and stated that it would pursue all available legal remedies to protect its rights and interests.
The company also assured investors that its manufacturing operations and business activities continue uninterrupted and that the matter has had no adverse impact on its day-to-day operations.
The clarification follows widespread media reports that the FIA’s Anti-Corruption Composite Circle in Faisalabad registered a case alleging a Rs. 11.96 billion fraud involving power purchase agreements between Faisalabad Electric Supply Company (FESCO), Sitara Energy Limited, and several former FESCO officials.
According to the FIA, the case relates to alleged irregularities in electricity procurement, including claims that power purchase agreements were executed or extended without the required regulatory approvals, resulting in losses to the national exchequer. The allegations remain under investigation and have not been proven before a court of law.
According to the FIA, the investigation focuses primarily on the operations of Sitara Energy Limited, alleging that electricity was sold to FESCO at rates above those approved by the regulator while electricity was supplied to an affiliated company at lower rates.
Investigators have also alleged that subsidized gas was obtained by representing the company as a captive power plant despite discrepancies in its regulatory status. The FIA has named several current and former officials in the case, while stating that investigations into the role of additional individuals are continuing.
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.