FIA Opens Case Against Unity Foods Over Alleged Misuse Of Funds.
✧ GENERATE BRIEFING +
The Federal Investigation Agency (FIA) has registered a formal criminal case against the former management of Unity Foods Limited over severe financial irregularities, acting on an official referral from the Securities and Exchange Commission of Pakistan (SECP). According to the First Information Report (FIR), a comprehensive SECP investigation uncovered staggering discrepancies of approximately Rs44.7 billion between the company’s published financial statements and its internal records, prompting a criminal inquiry into corporate fraud, misreporting, and inventory manipulation. The investigation specifically targets a Rs3.75 billion rights issue raised from general shareholders, alleging that roughly Rs2.87 billion of those capital proceeds were diverted for unauthorized purposes outside the scope disclosed in official prospectus documents. Furthermore, the FIA is probing an alleged Rs5.318 billion corporate loan extended from company accounts to the mother of the former chief executive officer, alongside a suspicious Rs2.6 billion advance issued by a Unity Foods subsidiary to two unidentified entities.
The Federal Investigation Agency (FIA) has registered a criminal case against the former management of Unity Foods Limited over alleged financial irregularities, following an investigation by the Securities and Exchange Commission of Pakistan (SECP).
According to the FIR, the SECP investigation identified discrepancies of around Rs44.7 billion between the company’s published financial accounts and its internal records. The regulator subsequently referred the matter to the FIA for investigation into possible criminal offences involving company funds, financial reporting and inventory records.
The case also concerns a Rs3.75 billion rights issue raised by Unity Foods from shareholders. The FIR alleges that approximately Rs2.87 billion of those funds were used for purposes other than those disclosed in the company’s issue documents.
Another transaction under investigation involves an alleged Rs5.318 billion loan from company funds to the mother of the former chief executive officer. The FIR also alleges that a Unity Foods subsidiary advanced Rs2.6 billion to two unidentified parties.
The FIA’s Corporate Crime Circle in Karachi registered the case on August 29 against the company’s former management and other accused persons under relevant provisions of the Pakistan Penal Code, following the SECP’s referral.
