Peshawar Companies Allegedly Main Culprits in Rs. 106 Billion Solar Panel Import Scam

Senate Sub-Committee on Finance and Revenue convened on Monday to address a corruption scandal involving Rs. 106 billion in transactions linked to solar panel imports. One lawmaker disclosed that two companies based in Peshawar were allegedly the main culprits in the fraud. A total of 11 companies have been accused of involvement in the mega scandal. Member Customs revealed that Peshawar-based Bright Star and Moonlight inflated invoices by Rs. 70 billion and remitted Rs. 106 billion abroad while selling solar panels worth Rs 85 billion locally. It was disclosed that banks flagged suspicious transactions against the importers in 2023, but the Financial Monitoring Unit (FMU) admitted it lacks mechanisms to independently generate Suspicious Transaction Reports (STRs). Officials from a private bank revealed that accounts implicated in the scandal were opened at their Badami Bagh Lahore branch. Two individuals allegedly opened an account for one of the complicit companies which began operations just three days after account activation in 2018. According to records, the company called Bright Star allegedly executed transactions amounting to Rs. 2.7 billion in 2018, Rs. 5 billion in 2019, Rs. 1.5 billion in 2020, Rs. 3 billion in 2021, and Rs. 2.5 billion in 2022 with no Currency Transaction Reports (CTRs) submitted for each. The Financial Monitoring Unit (FMU) explained that CTRs are reviewed for suspicious activity and converted to Suspicious Transaction Reports (STRs) when warranted. These STRs are then forwarded to enforcement agencies for action. A case against the companies is currently underway in the customs court. The sub-committee has demanded detailed records from the central bank and commercial banks within ten days to further investigate the matter. The committee sought details of all suspicious payments flagged by the Federal Board of Revenue (FBR) so far. It also demanded detailed records from the central bank and commercial banks within ten days to further investigate the matter.