Mobile franchises close after raids by security agencies

Some franchise owners picked up but released later, police deny involvement.

KARACHI:

Franchises of some cellular mobile companies (CMOs) have closed their businesses across Karachi amid fears of raids from security agencies, sources in the telecommunication industry and their franchises say.

The security services, earlier this week, started conducting raids on particular franchises of two telecom operators and detained a few franchise owners. The news spread panic and fear among franchises of other companies, which decided to close their business on Monday as they could be the next target.

The franchise owners also closed their business as a mark of protest against the raids by the law enforcement agencies (LEAs).

On Thursday, however, franchises of some CMOs started reopening their business, but franchises of other operators kept the shutters closed.

As CMOs did not give an official statement, the reasons for the raids could not be confirmed. However, at least two telecom sources confirmed the development.



The franchise owners, according to sources, are facing threats and pressure from LEAs. Those who have been released are not willing to speak on record and some have even gone into hiding.

Some franchise owners were taken to police detention centres and allegedly forced to pay money, sources said. The security services denied the raids and arrests.

The closure of franchises – the most important sales channel for CMOs – is causing a lot of inconvenience to the general public that depend on the franchises to buy new cellular connections, top-up their mobile credit and buy prepaid cards.

If any franchise is involved in any illegal activity, police can take action against it according to the law, commented a PTA official. “If the franchise has any complaint, it can send it to the mobile operator, which can forward the matter to the PTA,” he said.

None of the CMOs contacted gave any official statement, but a couple of officials said the franchises had started opening gradually. Later, the CMOs took notice of the matter and decided to hold a meeting with the PTA and security agencies on Friday to resolve the matter.

All new connections are being sold through biometric system in Karachi, therefore, the sale of unauthorised SIM cards shouldn’t be the reason, a telecom official said while commenting on the possible reasons behind the raids.

PTA had directed all CMOs to complete the deployment of biometric devices at their customer care centres and franchises in Karachi by November 30 and all over the country by December 20.

Another telecom source, however, said the raids could be a reaction of the introduction of biometric system. The franchises might have tried to sell the previous stock to meet sales targets, bypassing the SOP, he said.

Security agencies refute allegations

Special units of the police including Crime Investigation Department, Special Investigation Unit, Counter Terrorism and Financial Crime Unit as well as the Federal Investigation Agency denied their involvement in the raids and accused officials of the Crime Branch of detaining and blackmailing the franchise owners.

“SIU has not taken into custody a single person from the franchises,” said SIU chief SP Farooq Awan while talking to The Express Tribune. “Ask the Crime Branch officials. They are doing this.”

“We had arrested employees of a telecom company (about two weeks ago in response to the Supreme Court’s notice) and registered a case before handing them over to the FIA,” said in charge of CID’s Counter Terrorism and Financial Crime Unit Raja Omer Khattab.

“Some officials of the Crime Branch are harassing the franchise employees and blackmailing them,” he said.

“We do not exactly know which police unit is doing this, but it is happening,” FIA official Habibur Rehman said. “This has become a good business.”

The CID also denied the allegations. “We do not conduct any raid,” said CID chief Additional IG Iqbal Mehmood.

Crime Branch officials including DIG Kamran Fazal refused to comment.

Published in The Express Tribune, December 20^th, 2013.

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