PM orders action inRs120b solar scam

Two high-level committees formed to probe over invoicing involving importers, govt officials

KARACHI:

Prime Minister Shehbaz Sharif has ordered immediate legal action against all individuals involved in the Rs120 billion solar panel over-invoicing and money laundering case, according to an official statement.

The prime minister expressed concern over the illegal scheme, which continued from 2017 to 2022 and highlighted the negligence of multiple institutions. He ordered departmental action without delay against all government officials identified as being involved or negligent in the scandal.

To ensure accountability, the Prime Minister's Office has formed two high-level committees. A 'Committee for Disciplinary Action' has been established to oversee action against officers and officials of relevant institutions who facilitated over-invoicing. The committee is headed by the secretary of the Establishment Division, with senior officials from the State Bank, the Federal Board of Revenue (FBR), the Federal Investigation Agency (FIA) and the Intelligence Bureau (IB) as members.

A 'Monitoring Investigation and Prosecution Committee' has also been formed to assist in investigations and legal proceedings related to trade-based money laundering cases linked to solar panel over-invoicing. This committee is headed by the director general of Pakistan Customs Intelligence, with members from the Anti-Money Laundering Authority, the chief collector of Customs Enforcement, the deputy commissioner of FIA Islamabad, and senior IB officials. Both committees are required to submit performance and progress reports to the Prime Minister's Office every 15 days.

The prime minister has also directed the law minister to nominate two qualified lawyers as special prosecutors in Karachi and Islamabad to pursue these cases.

The FBR's Directorate of Post Clearance Audit uncovered this major scandal involving importers transferring funds abroad through over-invoicing. Subsequently, the Customs Adjudication Authority, in a landmark decision, imposed penalties of Rs111 billion on fake companies after charges were proven. Separate penalties have also been imposed on individuals.

The next phase of accountability will focus on recovering penalties, confiscating assets purchased through illegal earnings, and introducing systemic reforms to prevent trade-based money laundering. According to the letter issued by the Prime Minister's Office, these measures bring not only private individuals and companies but also government officials under strict accountability.