Panama case: Committee formed to probe allegations of record tampering by SECP

A four-member committee of Federal Investigation Agency (FIA) has been constituted to investigate the allegations of tampering with record of Security and Exchange Commission of Pakistan (SECP) leveled by the Joint Investigation Team (JIT) in its report submitted to the Supreme Court bench.

The committee for on the directives of Supreme Court, comprises Deputy Director Ayaz Khan, Tahir Tanvir and Farooq Latif and would be headed by Director Anti-Corruption Wing Maqsoodul Hasan.

Supreme Court bench ordered the FIA to probe charges against SECP chairman and directors that they tampered with record related to the Sharif family money trail.

It also alleged in its report that the SECP chairman and executive director were tampering with the record and showing non-cooperative attitude. The report stated, "The JIT asked the SECP for record of Chaudhry Sugar Mills and all past inquiries against Sharif family but the SECP denied any inquiries held against Sharif family in the past, while a witness told that the SECP chairman directed not to search the record of inquiries."

The Securities and Exchange Commission of Pakistan (SECP) is the successor of the erstwhile Corporate Law Authority (CLA), which was an attached department of the Ministry of Finance. The process of restructuring the CLA was initiated in 1997 under the Capital Market Development Plan of the Asian Development Bank (ADB).

A Securities and Exchange Commission of Pakistan Act was passed by the Parliament and promulgated in December 1997. In pursuance of this Act, the SECP, having autonomous status, became operational on January 1 1999. The Act gave the organization the administrative authority and financial independence to carry out the reform program of Pakistan’s capital market.