A subcommittee for the Senate on Funding on Monday raised serious concerns about a corruption scandal with several billion rupee in the import of solar panels.

The Senate Standing Committee on the Finance’s Under Committee questioned how certain companies managed to implement transactions that far exceeded the legally prescribed annual limit of RS20 million, with some companies allegedly processing transactions worth RS2 billion to RS5 billion in a single year.

The panel was told that a total of 11 companies have allegedly been involved in the MEGA scandal.

Communicized by Senator Mohsin Aziz called the subcommittee to discuss the details of the scandal.

The Federal Board of Revenue (FBR) was strongly criticized for its lack of discovery and preventing these suspicious transactions.

“How did a few companies manage transactions worth billions? Senator Aziz questioned.

He also investigated how companies exceeded RS20 million annual transaction limits. “Where was FBR when these suspicious transactions took place?”

The committee revealed that 11 companies were involved in RS160 billion solar panel transactions, with two key players being Star Business Solution and Moonlight from Peshawar.

A private Islamic bank revealed that the accounts of these companies were opened on its Badami Bagh branch in Lahore. Bright Star’s account was opened on August 3, 2018 by Rab Nawaz and his wife, Zainab Nawaz, while Moonlight’s account began by Zahid Akbar. Bright Star started doing business just three days after its account opened.

According to the bank’s representatives, the Bright Star Transactions worth RS2.7 billion in 2018, RS5 billion in 2019, RS1.5 billion in 2020, RS3 billion in 2021 and RS2.5 billion in 2022.

Senator Aziz pointed out that although a single-day transaction limit was RS2 million, these companies treated millions in a single day. “How was this possible?”

The bank officials replied that transactions exceeded RS2 million trigger a currency transaction report (CTR), which is then forwarded to the Financial Monitoring Unit (FMU).

FMU representatives explained that receipt of a CTR does not automatically indicate suspicion, but if a transaction appears to be questionable, a suspicious transaction report (size) is submitted and forwarded to enforcement agencies for further action.

Senator Aziz demanded clarity on the actions of enforcement agencies against the companies involved in the STRs and emphasized the need for stricter control and accountability.

It is relevant to note that South in South earlier this month revealed a massive RS106 billion laundering of money laundering money tied to fraudulent imports of the solar panel.

The study identified two brothers as the alleged Masterminds behind the operation, which depended on a web of seven Shell companies based in Peshawar and Lahore. Despite a declared economic value of only RS119 million, the companies laundered billions through over -invoiced solar panel import.

PCA finds revealed that the prices of solar panels were bloated by up to 500%, with panels imported at $ 0.35- $ 0.70 per day. Watt, which far exceeded the original $ 0.15 per Watt costs in China. To hide the illegal funds, RS42 billion was deposited in cash across several business banks.