Unity Foods faces FIA investigation over alleged Rs44.7bn financial irregularities

The Federal Investigation Agency (FIA) has registered a criminal case against the former management of Unity Foods Limited, a company listed on the Pakistan Stock Exchange, following an investigation by the Securities and Exchange Commission of Pakistan (SECP).

The SECP probe uncovered significant financial discrepancies, including a reported Rs44.7 billion difference between the company’s published accounts and internal SAP records. Specifically, of the Rs3.75 billion raised through a 2019 rights issue intended for expansion and diversification, approximately Rs2.87 billion was allegedly diverted from its stated purposes.

Other major irregularities identified include: - The alleged payment of Rs5.318 billion from company funds to the mother of the former CEO under the guise of loan repayments. - A Rs2.6 billion advance made through a subsidiary to two undisclosed parties. - A Rs5.2 billion discrepancy between recorded inventory and physical stock. - A lack of evidence regarding goods supplied against liabilities totaling approximately Rs5 billion.

The FIA’s Corporate Crime Circle in Karachi is investigating the movement of funds and the roles of various directors and officers to ensure investor protection and financial transparency.