Fake firms exposed in Rs3.26bn router imports

Summary

• KARACHI: A customs investigation has uncovered the alleged use of fake companies to import 71,815 internet routers worth Rs3.26 billion without approval from the Pakistan Telecommunication Authority (PTA).
• According to an investigation report prepared by Customs authorities in Karachi, two companies allegedly imported the routers while committing under-invoicing and suspected trade-based money laundering.
• What initially began as an investigation into the suspicious import of more than 71,000 routers has now expanded into a wider probe involving alleged fake companies, hidden operators, suspicious financial transactions and billions of rupees in trade flows.

AI Generated Summary

KARACHI: A customs investigation has uncovered the alleged use of fake companies to import 71,815 internet routers worth Rs3.26 billion without approval from the Pakistan Telecommunication Authority (PTA).

According to an investigation report prepared by Customs authorities in Karachi, two companies allegedly imported the routers while committing under-invoicing and suspected trade-based money laundering. The companies identified in the report are Muslim Sons Enterprise and Mosani Syndicate.

The report described both firms as allegedly fake or paper companies. They were reportedly registered in the names of frontmen and allegedly used as “market IDs” for hidden operators involved in the import business.

The registered business addresses of the two companies also raised serious questions. Investigators found that one address was being used by a flour and rice shop, while the other was a rented residential property.