FBR nabs Rs106bn solar panel scam

Investigation reveals that seven fake companies were used to over-invoice solar panel imports
An undated image of solar panels. — Canva
An undated image of solar panels. — Canva 

The Federal Board of Revenue (FBR) has exposed a massive money laundering scam worth Rs106 billion, cleverly disguised as solar panel imports. This significant fraud was uncovered by the Directorate of Customs Post Clearance Audit South.

The investigation revealed that seven fake companies were used to over-invoice solar panel imports and carry out illegal transactions. These companies include Messrs Sky Linkers Trading Company, Bright Star Business Solution, and Royal Zone (Private) Limited, among others.

According to the director of Customs Post Clearance Audit South Shiraz Ahmed, the fraudsters imported solar panels at inflated prices, paying $0.35 to $0.70 per watt for items that originally cost only $0.15 per watt. This inflated the declared value by up to 500%.

The scheme, led by Rab Nawaz and his brother Ahmed Nawaz, involved over-invoicing solar panel imports and laundering of Rs106bn through fake companies, causing heavy financial losses to Pakistan's national exchequer.

Moreover, one startling discovery was of a salaried person earning just Rs250,000 a year who was listed as the owner of a company that imported solar panels worth Rs2.5bn. Funds were eventually routed to bank accounts in China to further conceal the fraud.

Notably, under the guidance of DG PCA Chaudhry Zulfiqar Ali, special teams are intensifying their efforts to bring the culprits to justice. This move aims to combat financial crimes in Pakistan.