Unity Foods Faces FIA Probe Over Alleged Billions in Fund Diversion
The Federal Investigation Agency (FIA) has registered a criminal case against former leadership of Unity Foods Limited over alleged financial irregularities involving billions of rupees. The case, filed by FIA’s Corporate Crime Circle in Karachi, names former CEO Muhammad Farrukh Amin Godil, his mother Fehmida Amin, former CFO Jalees Edhi, former director and CEO Amir Shehzad, and director Safdar Sajjad. The case follows an investigation by the Securities and Exchange Commission of Pakistan (SECP).
Former Unity Foods CEO, Four Others Named in Rs44.7bn Financial Fraud Case
According to the FIR, the alleged wrongdoing stretches from the 2017-18 financial year through 2025 and includes six major allegations. These include the alleged diversion of Rs5.32 billion through purported loans to the former CEO’s mother, and the alleged misuse of Rs2.87 billion from a Rs3.75 billion rights issue. The FIA also alleges that Rs2.6 billion was advanced through Unity Foods’ subsidiary Sunridge Foods to two undisclosed parties without proper documentation or approvals.
Another major allegation concerns Rs12.45 billion in liens placed on Unity Foods’ bank deposits in connection with borrowings of former subsidiaries Unity Technologies and Unity Plantations. The FIA also alleges that company resources worth around Rs1.1 billion were supplied to Al-Shaheer Corporation without corresponding recovery, allegedly benefiting an acquisition linked to the former CEO. The investigation further examines transactions involving nominees and other individuals associated with the former management.
The largest allegation involves a Rs44.7 billion discrepancy between Unity Foods’ published financial statements and its internal SAP records. The FIA says the discrepancy includes questionable receivables, an inventory shortfall of about Rs5.2 billion, roughly Rs5 billion in aged receivables from Sunridge Mart and other accounting inconsistencies. The FIA has assigned an officer to investigate the case, while the roles of additional directors, officers, auditors and other parties may be examined as the investigation proceeds. The case remains at the investigation stage, and the allegations have yet to be proven in court.
