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Javed Afridi responds to ‘MG Motors mega under-invoicing scam’ rumors

MG Capital is accused of evading over Rs1 billion in duty and taxes so far

11:05 PM | 14 Feb, 2021
Javed Afridi responds to ‘MG Motors mega under-invoicing scam’ rumors

ISLAMABAD – Javed Afridi, who helped bring British carmaker MG (Morris Garages) to Pakistan, has hit out at the automobile giants in the country amid reports of a federal investigation into an under-invoicing scam.

“For decades, Pakistani automobile consumers have been exploited by cartels that cornered them with low quality, boring models at exorbitant prices. Plus, buyers had to pay billions of rupees to get delivery of the very vehicles the price of which they had already paid,” the KP-based businessman said in a post on his social media accounts.

“As new entrants bring in exciting new models at far lower prices, instead of competition, we expect maligning campaigns and baseless rumors.

“While we know that competition is an unfamiliar phenomenon in Pakistan's automobile industry, we invite everyone to join in a fair competition to serve Pakistani consumers with a bigger and better variety of vehicles at lower prices,” he added.

https://www.facebook.com/JAfridiofficial/posts/274727457347494

The statement of Javed Afridi, who is the CEO of MG Capital, comes hours after a local newspaper claimed that the Federal Board of Revenue (FBR) was reportedly investigating a mega under-invoicing scam showing the purported involvement of (Afridi’s) one of the new companies owned by a leading Chinese automobile corporation.

Citing its sources in FBR, the Business Recorder maintained that to date, the company appears to have imported over 400 CBU units from Shanghai China predominantly MG HS Model, their highest specification model, with declared customs value of $ 11,632 which is “absurdly low” considering the same vehicle is being sold at a price above $27,000 in other countries.

“The under-invoicing “evidence” has also been shared with other line Ministries and agencies for a thorough probe as this is inflicting billions of rupees financial loss the national exchequer,” it further reported.

With over 400 CBU units already imported, the company is accused of evading over Rs1 billion in duty and taxes so far.

Pakistan's JW-ZES Group is the local partner of MG Motors and Javed Afridi, the CEO of Haier Pakistan and owner of PSL franchise Peshawar Zalmi, is the major stakeholder. The company debuted in Pakistani auto market with MG HS, a compact SUV, in November 2020.

Just last month, MG Pakistan launched two more cars, MG ZS and MG ZS EV following a positive response from the local consumer market.

Over the weekend, Afridi had teased the fans by standing next to the MG 5 sedan.

However, it is yet to be confirmed if the car will be coming to Pakistan’s market any time soon.

Daily Pakistan Global Web Desk

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Currency Rates in Pakistan Today - PKR to US Dollar, Euro, Pound, Dirham, and Riyal 12 April

Pakistani currency remains unchanged against US dollar and other currencies in open market on April 12, 2024.

US Dollar rate in Pakistan

On Friday, the US dollar was being quoted at 277.4 for buying and 280.65 for selling.

Euro was quoted at 299.95 for buying and 302.9 for selling while British Pound stands at 349.5 for buying, and 353 for selling.

UAE Dirham AED was at 75.45 and Saudi Riyal's new rates was at 73.30. 

Today’s currency exchange rates in Pakistan - 12 April 2024

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