Beema Pakistan fights back
BPCL responds to the allegations by SECP
Winding up petition is based on malafide intent, says BPCL
We invite the press to investigate the matter and decide for themselves, BPCL
Consequent upon a Press Release sent to the Media by SECP for immediate release as at March 1st, 2010 Islamabad; proclaiming massive fraud committed by the Chairman & Chief Executive Mirza Shahnawaz Agha and others; towards the acquisition of Beema-Pakistan Company Limited in 1999; and followed by yet another Press Release on March 09, 2010 declaring that the said Regulator SECP is liquidating Beema-Pakistan Company Limited and other few Companies, it has become incumbent upon the Company to post its rebuttal before the press for the benefit of the Share-Holders and the Public at large. Keeping in view that the matter is being heard by the Honorable High Court, and hence is subjudiced, the management has decided to categorically respond to each allegation publicized in the aforesaid Press Release yet remain within the ambit of law and reproduce for the press only what has already been presented before the Courts and leave the decision to the fine judicial system.
With reference to the winding-up petition mentioned in the SECP press release, it was filed by the SECP in 2007 and as the case is coming to a head, now the Press Release in their wisdom became necessary in 2010 to allegedly influence the verdict of the courts and or to further defame the Company as a defence against their own crimes committed thus far. The said winding-up petition is being based upon a fake and fraudulently engineered ‘inspection report’ Some anonymous letter from some Haroon Zakria with a fake address of the Karachi Stock Exchange accompanied by a ‘draft photo copy of a half yearly report’ from a “sacked-by-the Management” auditor Muniff Ziauddin & Co was considered as the reason to initiate an inspection and enquiry by SECP.
The term “fraud” has been used liberally to emphasize their engineered attempt to rob the Company of its wealth and business. The management allowed the inspectors to freely pick-up / examine any file and any paper in the Company and the story of the two lands which were a “considered transaction” by the Company and “not” a consummated transaction have been made the bed-rock of alleging fraud of Rs. 60.8 million. All transactions were done by the management strictly in accordance with law. We say this because based upon the photo copies of the said “considered but not consummated transaction” the SECP wrote to Registrars of respective lands and obtained an adverse report. The numbers communicated to the Registrar of lands were wrong, and this is addition to the suspect and notorious standing of the Registrar as is evident from Suite # 27 of 2010. These fake reports were presented before Lower and High Courts to establish ‘fraud’ by the at SECP to rob the Company and its stake-holders.
Responding to the allegation regarding the properties comprising the asset base of BPCL and their mutation the management has clearly stated in the courts that the properties put into Beema-Pakistan Company Limited comprise of 3204 acres in all and are duly surveyed and assessed by reputed licensed surveyors and valuation consultants at a value in excess of Rs. 1 billion. Despite this fact, in the three ‘hearings’ held by the SECP, head by their then Chairman Razi ur Rehman Khan and fourteen others, the Chairman BPCL, Mr. Agha offered to substitute the current properties with new ones so that the SECP’s objection to hold agricultural properties which have questionable valuation in their opinion can be substituted with urban properties. While the management initiated a process of substitution within the SECP’s knowledge they issued notices to sellers under Section 30 of the SECP Act subverting the transactions and causing a direct loss to the Company of Rs. 240 million. The Company has in writing raised their claim on the SECP. As for the mutation of these properties, it was the discretion of the management under the Companies Ordinance 1984. The demands of the SECP on the contrary are ridiculous and by design to cause interference into the affairs of the Management and stake-holders.
On the subject of the DHA residence, once again this narration and allegation is based on lies as is evident from the paper trail of the property. The property was “first” bought from the personal funds of the Chairman and Chief Executive in 2006 and subsequently transferred to Beema-Pakistan Company Limited to enhance the capital base of the Company. Observing the nefarious designs of the Regulators it was promptly re-acquired back from the Company and a loan of Mr. Agha to the Company was adjusted. This transaction was within the authority of the Management of the Company and is clearly out side the ambit of the regulators. Regulators are not Operators of enterprise.
Foreign under writing is another allegation leveled by the SECP at the Chairman BPCL. This is another attempt based on lies by the SECP to block the liberty of the Directors and enterprise permitted by law. The legitimate off-shore income of the Mr. Agha is being labeled as one that was not his but that of Beema-Pakistan Company Limited. Ofcourse this is ludicrous as which Company that has a suspend registration can sell insurance in this day and age of electronic due-diligence.
All mandatory regulations were duly fulfilled by BPCL, which is evident from the fact that the license of the company was reinstated by the same regulators about two years prior to the investigation. The management was not given enough time to launch products and plans and establish the credibility of the company in the market. Immediately after the AGM in 2007, concurrent with the launch of the first securitized insurance product, with many in line ready for launch, SECP suspended the share trading of BPCL, thus defaming the company and sabotaging the underwriting activity and huge response BPCL received for its first product. Concerning the allegation of sales proceeds being used by the company, SECP needs to decide whether it was the foreign underwriting or the share sale proceeds that were being used to operate the company BPCL denies this allegation as rubbish, yet this narration supports the dichotomy of their own allegations.
The disclosure about ECL is also based on lies as the Minister of Interior in the last Caretaker Government had found the request of SECP as illegal and had issued orders for removal the names of all from the ECL. The case that the Chairman & Chief Executive had lodged in the High Court was against a demand of a Section Officer seeking a bribe of Rs. 2,000,000/- per head for twenty people placed on the ECL (some deceased). This case was withdrawn and was not dismissed as alledged by SECP owing to reasons of it being time cumbersome.
In view of the above it is submitted that the game plan is clear and open: Identify a profitable concern; find a skeleton in its closet, discredit the management through fake notices and penalties, forfeit shares and sell it to preferred taker for personal gain. This has happened recurrent by now and it is time this is put to rest as this criminal activity will arrest and freeze all enterprise emerging in Pakistan. We are committed to ensure the perpetrators of this crime be brought to law in their true colours.