EOBI shares scandal: Report in SC has no mention of AKD Securities

The inquiry determined shares had been purchased on maleficent recommendations of the investment committee


News Desk February 16, 2016
Aqeel Karim Dhedhi addressing a press conference in Karachi. PHOTO: MOHAMMAD NOMAN/EXPRESS



AKD Securities – which has been in the eye of the storm over an Employees Old-Age Benefits Institution (EOBI) shares scam – is not mentioned in a joint report submitted in the Supreme Court by FIA and SECP.


According to the report submitted by the FIA in the apex court, names of then EOBI chairman Zafar Iqbal Gondal, DG Investment Kanwar Khursheed Wahid, CEO of Messrs Amtex and Amcap Securities, Chairman SAZ Capital Aslam Motiwala, Khurram Shehzad, Maryam Shehzad and Navid Shehzad have been included.

According to FIA, a committee consisting of Gondal and Wahid recommended purchase of Amtex shares – a company which had been listed on the bourse on April 13, 2010. Subsequently 17.35 million shares worth Rs337.66 million were bought on August 16 and 27, 2010, in violation of EOBI rules.

The inquiry determined shares had been purchased on maleficent recommendations of the investment committee which cost the exchequer Rs290 million.

Amcap Securities, the report said, had played a key role in the sale of Amtex shares. The inquiry further discovered that that EOBI bought Amtex shares from SAZ Capital at a price of Rs19.34 per share despite being valued at Rs11.60 in the market just a few days earlier, thus costing EOBI Rs20 million.

Published in The Express Tribune, February 16th, 2016.

COMMENTS (2)

Investment Banker | 6 years ago | Reply It's time to round up and clean all regulating bodies you ommited SECP officials. They have a very important part in this transaction.
Lawyer | 6 years ago | Reply Dear ET, It is odd that you are commenting on a sub-judice matter. But what is even more odd is that you are not reporting the fullness of what is submitted in court (which is public record). Letters were also submitted to show the SECP was not cooperating in the investigation as several SECP member seem complicit in the scam and the FIA/NAB will also be looking into that matter. This is a proper corruption investigation. Please check independently from court if you have any doubts on my words. Sincerely,
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