ISLAMABAD: A Chinese investor, deceived by his Pakistani partners, has requested Pakistani authorities/ regulators to provide a fast-track forum to resolve business disputes and legal issues involving foreign investors.
Chinese investor, Zhicheng Li, talking to journalists here on Sunday, narrating the problems faced by him in getting justice after facing financial fraud in country has demanded that Pakistan needs to have a fast-track forum to resolve business disputes and legal issues involving foreign investors.
Li said that he was deceived by his Pakistani partners in their oil and gas development business and the local partners got a duplicate entity registered at the Securities and Exchange Commission of Pakistan (SECP) having the similar name and also opened parallel bank accounts using fake affidavits and fake signatures.
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Cheng Li (Donald) has a claim over 45% of the profit proceeds of the $178 million project for supplying processing gas units, an LPG recovery plant, and allied facilities at the Nashpa oil field located in district Karak of Khyber Pakhtunkhwa. His company, NASYS International Limited (Hong Kong), had a sole agency agreement with the China HBP for the Pakistani market.
Li has been running from pillar to post for the last six years to get his issue resolved. His Pakistani partners have reduced his share of M/s NASYS International Co. (Pvt.) Limited from 45% to only 1 percent by submitting forged documents to the Securities and Exchange Commission of Pakistan (SECP).
The foreign investor has accused that two Pakistani shareholders registered a duplicate entity with the same name and style as NASYS International, a partnership firm registered with the Registrar of Firms. They also opened parallel bank accounts with the title NASYS International at two banks using fake affidavits and fake signatures.
During the project duration, the proceeds were en-cashed in the parallel bank account of the duplicate firm instead of the bank accounts of M/s NASYS International Co. (Pvt.) Limited, incorporated with the SECP. This way, his partners defraud Zhicheng Li of his 45% share of the total proceeds of around 13 million dollars in various projects.
Zhicheng Li told journalists that he has filed cases in court against reducing his shares in the company through forgery but hasn’t gotten justice in six years. He filed a complaint with the FIA against his partners for defrauding him through duplicate entities and bank accounts, but the agency is unable to conduct a fair inquiry.
Instead, said Li, when he came to Pakistan to pursue my case and present all evidence to the relevant investigation officer, the Director FIA, Islamabad Zone transferred the case to the Anti-Corruption Circle (ACC) from the FIA’s Commercial Banking Circle (CBC) without giving him a hearing opportunity, he said.
Li explained that if the projects were won and signed by M/s NASYS International Co. (Pvt.) Limited, then the proceeds should also be received or en-cashed in the company’s account. The duplicate entity, the firm with the same title, didn’t do any projects or business; then from where did the heavy proceeds come into the firm’s account, asked Li Donald and added that it is an open and shut case; all evidence is available.
Responding to a query, he objected that the FIA director transferred the case to a non-relevant department on the application of the accused while not giving me a hearing opportunity despite repeated follow-ups.
Giving the background details of the business, Li said that the issue traces back to 2015, when China HBP won a contract worth $178 million from the OGDCL for the supply of processing gas units, an LPG recovery plant, and allied facilities at the Nashpa oil field located in district Karak of Khyber Pakhtunkhwa.
The China HBP had a sole agency agreement with M/s NASYS International Limited (Hong Kong) for the Pakistani market, a company founded by Zhicheng Li.
In order to execute the project, Zhicheng Li, in partnership with two Pakistanis, has established a local company with the title M/s NASYS International Co. (Pvt.) Limited, with the shareholding of Li Donald at 45%, Naveed at 45%, and Rehan at 10 percent, incorporated at the SECP.
Zhicheng Li has been known to both Pakistanis since 2004, as he has been exporting solar panels, accessories for motor boats, and fabrics to them.
After knowing of the situation, Zhicheng Li filed a complaint with the FIA in October 2017. The FIA kept it on hold for over three years and closed it in 2020 for no reason. Zhicheng Li filed a request to reopen the inquiry in 2020 and furnished all the facts to the new investigation officer.
At the conclusion of the investigation, the investigating office (IO) composed the FIR, which was also reviewed by the FIA’s legal team and submitted for Director FIA approval. However, despite repeated requests, the investor was unable to get time for a fair hearing. Later, the case was transferred to another department.
The company M/s NASYS International Co. (Pvt.) Limited won several other projects in the field of energy with the efforts and experience of Zhicheng Li and earned sufficient profits that roughly amounted to over 13 million dollars. However, for all the efforts in winning contracts ended at losing all his earnings to the hands of different people from public and private sector, said a disappointed Zhicheng Li.
Copyright Business Recorder, 2023