KARACHI: September 20 : Pakistan’s two leading banks –Silk Bank and Meezan Bank—have facilitated Creek Marina Singapore (Pvt) Limited (CMSPL), a Singapore-based company, for a Rs 30 billion fraud by opening accounts in violation of the banking rules and without mandatory documentation which were later used the developer to defraud the buyers mostly overseas Pakistanis.
A First Information Report (FIR) registered by the Federal Investigation Agency (FIA), a copy made available to NEWSMAN, to take action against all fraudulent characters of Silk Bank and Meezan Bank as well as foreign companies involved in the fraud suggested that in 2004 Defence Housing Authority (DHA) Karachi and Meinhadt Singapore Pte Limited [thereinafter referred to as MSPL] entered into an agreed for construction of Creek Marina project located at DHA phase VIII Karachi . It was agreed between both parties to open and maintain an Escrow account for the purpose of payments received from the buyers and payments of expenses cost related to the project Creek Marina. The Escrow account was to be audited by an independent Auditor and cash flow was to be reported to DHA by MSPL. However, no Escrow account was opened till July 10 2022 after a settlement agreement between DHA, MSPL and CMPL on June 18, 2019. On May 5 , 2005 , an addendum was made to the said agreement, Creek Marina (Pvt) Limited [ thereinafter referred to as CMPL] was added as the sub-lesee third party for executing the project in Pakistan. The CMPL is a subsidiary of another foreign special –purpose vehicle company namely Creek Marina Singapore Pte Limited [ hereinafter referred to as CMSPL] –an investment holding company for CMPL –registered in Singapore entirely owned by another off-shore company namely Swifteam Holding Limited registered in the British Virgin Island.
According to the FIR, in violation of the aforesaid agreement , CMPL fraudulently opened two bank accounts i.e A/c No account no 001-02843-001 Titled Creeek Marina Pvt Limited in HSBC Bank Karachi on April 20, 2005 [authorized signatory Nasim Shahzad & others ] and A/c No 0007-70002286-03 Titled Creek Marina Pvt Limited in HBL Commercial Banking Branch on May 15, 2007 [authorized signatory Nasim Shahzad & others] . During the operation of these accounts, approximately Rs 12.1 billion and Rs 17.1 billion were credited into these accounts respectively. These two accounts were current accounts and no Escrow accounts. The fund fraudulently accrued in these accounts from the buyers [general public] and investors of the project. The management of CMPL , fraudulently invested the same in another [new] CMPL’s HBL investment plus account No 0007-79005746-80] Titled Creek Marina (Pvt) Limited in HBL Commercial Banking Branch Karachi .During that period, the Creek Marina construction project remained halted and no substantial work was being carried out by CMPL.
Again, in April 2011 the management of Creak Marina fraudulently opened another account No 001-170315-202 Titled: Creek Marina Singapore (Pvt) limited, an investment foreign company, at HSBC Pakistan main branch Shaheen Complex , Karachi , which was later transferred to the Meezan bank 2014 after HSBC merger with Meezan bank as having new account number 9902-01014732-23. The account remain none operational and dormant till June 2016, when Faisal JamIl khan , then operational manager, and Syed Ali Murad Naqvi , branch manager Meezan bank Shaheen Complex Kayani road Karachi reactivated with bank account on the request of Nasim Shazad as he was authorized signatory . The account was fraudulently reactivated in violation of the state bank of Pakistan regulation , AML/ CFT regulation , CDD,EDD, etc and without obtaining the mandatory document required for a foreign investment holding company in Pakistan i.e board of investment ( BOI ) government of Pakistan approval.
During the operation of this account the funds of Rs, 4.3 billion accrued in this account from the buyer and the investors subsequently siphoned off mainly through cash with drawl and third party payments.
Again the management of CMPL/ MSPL fraudulently opened and another bank account bearing A/c No, 2010568668 Titled: Marina Singapore (Pvt) Limited in Silk Bank main branch Karachi on Dec, 2021 [account authorized signatories : Nasim Shahzad, Mohammad Omar Shahzad , Nudrat Mand Khan and Muhammad Abdul Raheem ] with active connivance of Silk Bank officials. This account was opened in Silk Bank without obtaining mandatory documentation viz, Company’s Board of Directors resolution, Article of Association, Company registration Certificate, Form A and Form 29 , Certificate of incorpotation , SECP –approved documents , verified signatures on the AOF by the embassy official for signatories residing abroad , and approval from the BoI of Pakistan. Moreover , no biometric verification of the authorised signatories of the account holders was conducted . Shehryar Khalid –GM and Faisal Hameed ROSM of Silk Bank with criminal intention and connivance , got these accounts opened by securing deferral (for submitting request documents) on this account from the Silk Bank management. The account service department proceeded to open the account while adhering to instructions regarding its status as “Post no Debt” (PND) . Later, Faisal Hameed merely obtained a scanned copy of the account opening form with incomplete documentation. Despite PND, the account remained operational with a total and turnover of Rs 158 million. During the inquiry, the management of CMPL admitted that the majority of its debtors are employees of the company but failed to provide any passible answer / justification for funds so siphoned off from this account.
It added while fraudulently establishing a series of undisclosed bank accounts and deceitfully obtaining and embezzling investment funds under the pretense of housing project, the management of CMPL/MSPL with criminal connivance of Meezan Bank officials –Faisal Jamil Khan, , Syed Ali Murad Naqvi and Silk Bank officials Sheryar Khalid and Faisal Hameed embezzled around Rs 30 billion for personal gains of the directors and ultimate beneficiaries owners of CMPL/MSPL and CMSPL.