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3 Faisalabad cosfined Rs 51m forforgery in export quotaMUZAFFAR QURESHI

KARACHI: The Export Promotion Bureau (EPB) has imposed fines of over Rs. 42 million Rs. 7 million and Rs. 2 million on Shabbir Associates, Saaqib Fabrics and Hitec International, respectively, the three Faisalabad textile export firms, which were adjudicated guilty of forgery in export licences issued by the EPB for textile exports quota.

The penalties are contained in an order issued by the Vice-Chairman of EPB under SRO 11 of 1999 and SRO 1 of 2000 after detailed hearing of the cases in which the owners of the firms confessed to having committed forgery.

In addition to fines for violating rules of Textile Quota Policy, the owners of the three guilty firms have been asked to immediately provide quota, for the excess quantities shipped to EU in Cat-20, from whatever source possible. The order also provides that shipment of excess quantity of quota up to September 30, 1999 against forged licences shall not be counted towards the performance of the exporters in the year 2000 or in any subsequent year.

The judgement was passed after issuing show-cause notices to these firms and careful study of the explanations submitted by them and after personal hearings in which the owners of accused firms confessed to their crime.

Saaqib Saeed of Saaqib Fabrics, who is also owner of Shabbir Associates and was accompanied by his father, Muhammad Saeed Ahmed, told the Vice-Chairman of EPB during the hearing that he had accepted the liability of Saaqib Fabrics for the forgery even though it was allegedly committed by their agent and employee Irshad Ahmed.Saaqib stated that export proceeds in this case were remitted to Pakistan in full for the actual and full quantity of goods exported as per the forged licence. He produced Bank Credit Advice (BCA) as evidence.

He said that Irshad Ahmed, who is also owner of Hitec International, was responsible for all paper work relating to their exports including purchase and rent of quotas but they were shocked to learn from the show-cause notice that Irshad never actually made the quota payments that were entered in the accounts of Saaqib Fabrics. Instead, he falsified the documents to show that quota licences had been duly obtained. Relevant voucher purporting to be the acknowledgment of Irshad Ahmed for receiving money on this account was provided by Saaqib Fabrics.

Saaqib Fabrics admitted that fraud/forgery was committed and it got involved in the proceedings. This was due to inexperience and undue reliance on Irshad Ahmed and there was no intention of guilt on their part.

Saaqib also accepted the liability of Shabbir Associates for forgeries even though the same was allegedly committed by agent Irshad Ahmed. The firm offered all quotas held by the company to adjust against its liability in EU Cat-20. The excess quantity shipped by Shabbir Associates through forgery of export licence amounted to 87,083.10 kg.

In case of Hitec International, which is owned by Irshad Ahmed, an employee and agent of Saaqib Fabrics, the adjudicating officer was told that Irshad was at present out of the country. Announcing the ex-parte verdict, the EPB Vice-Chairman ordered the Hitec International to pay a fine equal to 200 percent of the FOB value of consignments, namely, 27,063 dollars equal to Rs. 1,350,763 at the exchange rate thus comes to Rs. 2,701,526.

Pending the provision of quota for the excess quantity and payment of fine quota servicing for Hitec International, Faisalabad, would remain suspended.