A Karachi court refused bail today to four people held in the Unity Foods case. The court will hear the bail pleas again on September 12.
Who Was Arrested
The four people in custody are:
- Jalees Edhi
- Amir Shehzad
- Safdar Sajjad
- Abdul Majeed Ghaziani
All four are current or former Unity Foods officials.
What the Case Is About
The FIA filed this case against Unity Foods' former management. It followed a referral from the Securities and Exchange Commission of Pakistan (SECP).
The FIA and SECP are looking into an alleged Rs. 44.70 billion gap. This gap sits between the company's published accounts and its internal SAP records.
Where the Money Allegedly Went
Investigators are also checking:
- Rs. 2.87 billion from a rights issue, allegedly used for purposes other than declared.
- A Rs. 5.20 billion shortfall in company inventory.
- About Rs. 5 billion in customer payments with no proof that goods were ever delivered.
- Rs. 5.31 billion in alleged payments linked to the former CEO's mother.
Former CEO Farrukh Amin and others are named in the case.
Who Owns Unity Foods
Unity Foods trades on the Pakistan Stock Exchange. The public holds 34% of its shares. Singapore's Wilmar International holds close to 42%. Wilmar has already booked a $150 million provision tied to its investment in the company.
Other Cases Still Open
SECP is running a separate probe into alleged insider trading in Unity Foods shares. A court case over Unity Foods' proposed takeover of Al-Shaheer Corporation is also still pending.
