25 September 2004	Saturday	09 Shaban 1425

KARACHI, Sept 24: The corporate crime circle of the FIA has unearthed, what they claimed as, the country's biggest re-insurance scam involving more than Rs950 million.

Deputy Director Wasif Abbas of the circle told newsmen here on Friday that a raid was conducted on the office of M/s Trans Asia Consultants, owned by Dr Saeed A. Shah.

Fake paper treaties, forged re-insurance guarantees, suspicious letters, stamps etc., were recovered during the raid, he said, adding that other documents related to the firm's business appeared to be of the Provident Capital Indemnity Limited, a company registered in San Jose, Costa Rica.

According to Mr Abbas, Dr Shah's firm did represent the PCIL, but it was hoodwinking Security and Exchange Commission of Pakistan in connivance with more than a dozen private general insurance companies, causing the national exchequer a loss of millions of rupees.

He said that Dr Saeed had been assisting 11 firms in undertaking insurance business over and above their actual financial strength. These insurance companies, he added, had been submitting to the SECP, Income Tax department, Excise department, etc., documents of fake accounts and financial statements supported by forged guarantees extended by the PCIL.

Mr Abbas identified the 11 insurance firms as the Jupiter Insurance, Sea Field, Progressive, Continental, Union, Asian Mutual, North Star, Pak General, Pak Equity, and the Credit and Cooperative Insurance Society of Pakistan.

An investigation into these companies' affairs would be initiated soon whereas the concerned authorities might see if they were evading taxes also. Dr Shah, a mechanical engineer by his academic qualifications, has been arrested by the corporate crime circle and a case (No. 10/2004) has been registered against him under section 420, 406, 467, 468, 471 and 109 of the PPC.