KARACHI: Four current and former officials of Unity Foods Limited remained in custody after they were unable to secure bail in the FIA’s multi-billion-rupee corporate crime case, while the scheduled court proceedings were adjourned until September 12.
The accused seeking bail include former chief financial officer Jalees Edhi, director Safdar Sajjad, former director Abdul Majeed Ghaziani, and Amir Shehzad, who served as a director of Unity Foods and later as chief executive of its subsidiary, Sunridge Foods.
The latest development follows an FIR registered by FIA’s Corporate Crime Circle, Karachi, on August 29 against former Unity Foods chief executive Farrukh Amin and other current and former company officials.
The case was registered on a reference submitted by the Securities and Exchange Commission of Pakistan after its examination identified suspected criminal breach of trust, falsification of accounts, misuse of company and shareholders’ funds, and possible money laundering.
Farrukh Amin was earlier released after a Karachi magistrate declined FIA’s request for his physical remand in view of a protective order issued by the Sindh High Court. He was directed to furnish a bond, cooperate with the investigation and not leave the country without permission. The four other accused were handed over to FIA for investigation and subsequently moved bail applications.
A central allegation concerns an estimated Rs44.7 billion difference between Unity Foods’ published financial information and its internal SAP records.
The investigation also covers an alleged Rs5.2 billion inventory shortfall, approximately Rs5 billion in receivables without evidence of corresponding deliveries, and suspected diversion of around Rs2.87 billion from a Rs3.75 billion rights issue raised for specified expansion projects.
FIA is also examining alleged payments of Rs5.318 billion involving the former chief executive’s mother, other related-party transactions, and the possible use of Unity Foods’ funds and resources for connected entities.
Unity Foods is listed on the Pakistan Stock Exchange, with approximately 34% of its shares held by the public. Singapore-based Wilmar International holds around 42%, while Farrukh Amin and his family own approximately 24%.
The case has wider implications for public shareholders and foreign investors, as Wilmar has recognised a US$150 million provision relating to its investment in Unity Foods.
Separately, several regulatory proceedings involving Unity Foods remain before civil courts, the Islamabad High Court and the Sindh High Court. These include challenges to SECP’s investigation orders, alleged insider trading in the company’s shares and the proposed takeover of Al-Shaheer Corporation Limited.