Investigators find ample evidence of forex fraud

Islamabad: Pakistani investigators claimed on Tuesday they had collected enough evidence to prove that last Saturday's crackdown on the country's biggest private foreign exchange company, Khanani and Kalia, was justified as it involved illegal physical transfer of millions of dollars abroad.

"The Federal Investigation Agency [FIA] Cyber Crime Wing has found computerised evidence of illegal transactions of millions of dollars. The FIA has done a wonderful job and arrested a number of suspects. Others will be caught soon," Rehman Malek, adviser to Prime Minister Yousuf Raza Gilani on Interior Affairs and Narcotics Control, said.

Munaf Kalia, the main suspect in the forex scandal, was handed over to the investigators by a court on a physical custody till November 17, for interrogation. His partner Javed Khanani, has already been handed over to the investigators.

Authorities in Pakistan started a crackdown against the company, its subsidiaries and a number of other currency dealers on Saturday last, alleging these entities were involved in physically transferring foreign currency abroad and depriving the country of millions of dollars - a situation that was one of the major contributing factors behind the sharp devaluation of the Pakistani rupee against the US dollar.

Charge

The directors of Khanani and Kalia International, which enjoyed more than 40 per cent of the country's foreign exchange business, have also been accused of running "Hawala" and "Hundi" business in violation of the monetary and fiscal laws of the country.

Meanwhile, Munaf Kalia, told reporters after his arrest that he was not involved in any illegal business and would present the 'real picture' after securing bail.