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Jahangir Siddiqui & Co.

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JS Group, also known as Jahangir Siddiqui Group, is one of the biggest financial services provider of Pakistan, as well as the second largest shareholder of EFU Insurance. It is headquartered in Karachi, with important district offices in Lahore and Islamabad.

The investment branch of JS Group and the Pakistan arm of American Express were merged to form JS Bank Limited. [when?]

JS Air

JS Group includes a charter airline branch called JS Air (also known as JS Charter), which was set up in 2005 and operates regional low-passenger volume corporate flights, mostly serving the oil and gas industry. Between 2006 and late 2007, JS Air set up a joint venture with Airblue,[further explanation needed] the second largest airline in Pakistan, marking the nation's first ever airline joint-venture. Ultimately, the cooperation was stopped as it proved to be unsuccessfull.[1] Currently, JS Air only operates one single airplane, a 19-passenger Beech 1900C turboprop aircraft.[citation needed]

On 28 March 2011, JS Air have asked relevant authority that their operating license be withdrawn, their website has also shut down.[2]

JS Air disaster

Main article: 2010 Karachi Beechcraft 1900 crash

On 5 November 2010, a JS Air Beechcraft 1900 carrying staff of Italian oil company Eni crashed one minute after takeoff from Jinnah International Airport in Karachi, killing all 21 passengers and crew on board. The pilot had reported engine troubles, before the aircraft went down near a military depot in Gulistan-e-Jauhar, a suburb of Karachi. The Civil Aviation Authority of Pakistan gave a technical fault as most probale cause for the disaster. [3][4]

Land grabbing case

Prominent members of the JS group including the CEO Jahangir Siddiqui had been placed on the Exit Control List (ECL) in December 2010, for land grabbing in Karachi. The names of Jahangir Siddiqui’s wife, Mehwish Siddiqui, his son, Ali Jahangir Siddiqui, and his brother Zahid Siddiqui had also been placed on the ECL. Jahangir Siddiqui had recently illegally occupied a plot of 1,000 square yards in Karachi in connivance with the owner of an estate agency, using forged documents. [5][6]

In 2007, Pakistan's regulatory body, the Securities and Exchange Commission of Pakistan (SECP), found Jahangir Siddiqui & Company Limited guilty of undertaking investments in associated parties without disclosure or informing of shareholders in the company. The shareholders of the Company on April 29, 2006 passed a resolution to make investments of Rs.150 million in the related parties and associated companies of Network Microfinance Bank Limited (NMFBL) and Jahangir Siddiqui Infocom Limited (JSIL) (both controlled bt the JS Group). According to the report, the Company had failed to comply with the requirement of the Notification by non-providing the required information to its shareholders in the general meetings of the Company held on September 29, 2007 and November 24, 2007.[7]

Allegations of Fraud and Insider Trading

In January 2011, a Srilankan Newspaper, the Sunday Leader, gained access to an investigation report [8] by the Securities and Exchange Commission of Pakistan (SECP).[9] The report is said to have uncovered fraud and insider trading by JS Group Companies. Specifically, JS Global Capital Limited was found to finance the insider trading in a company called Azgard Nine Limited, which 6 months earlier had remitted 23.758 million Euros outside Pakistan. [10] [11]

The Securities and Exchange Commission of Pakistan (SECP) of Pakistan uncovered that most of the transactions of Azgard Nine Limited were made by JS Global, JS Group companies, JS Group mutual funds (managed by JS investments), sponsors/directors of Azgard Nine Limited, Live Securities and Aziz Fidahussein brokerage house and his family members. [12]

Securities and Exchange Commission of Pakistan (SECP) uncovered that JS Global Capital was the financier of the shares, and JS Global clients were the financees. 11 JS Group companies where involved, eight clients the JS Group and and four individuals with personal relationships to Jahangir Siddiqui and were involved in the insider trading; and in addition Ali Jahangir Siddiqui ( Jahangir Siddiqui’s son) was stated to be a common director in both Jahangir Siddiqui and Company Limited and Azgard Nine Limited and a Member of Audit Committee and Member of Finance Committee of Azgard Nine Limited[13].

False Allegations

Character assassination campaign has been launched against Mr. Siddiqui and he is being harassed on the pretext of illegally occupying a piece of land, which Siddiqui says legitimately belongs to him. Not only that, his name has also reportedly been put on ECL, which seems to be an attempt to tarnish his image but in practice this is a wrong message to investors.

The Sindh High Court issued notices for January 5 to defendants in a lawsuit filed by Jahangir Siddiqui of JS bank. The plaintiff filing the suit for defamation sought damages worth Rs5 billion for alleged allegations in the press and media. The defendants are Qamarunnisa, wife of Syed Irshad Ali, Syed Eijaz Ali Naveed, Ghanwar Khan, the Anti-Corruption Establishment director, and EDO Revenue Mustafa Jamal Qazi. [14] [15] [16]



References

  1. ^ JS Air to operate Gwadar for Air Blue
  2. ^ JS Air request license cancellation
  3. ^ News article on the air crash
  4. ^ JS Air crash at the Aviation Safety Network
  5. ^ Land grabbing scam, Qadeer Tanoli, The News, Thursday, December 09, 2010
  6. ^ Jahangir Siddiqui’s name in FIR for land grabbing, Imran Hafeez, The Tribune, International Herald Tribune, December 8, 2010
  7. ^ SECP vs. Jahangir Siddiqui, Enforcement Department, Company Law Division, 2008
  8. ^ Investigation Report on The Manipulative and Other Prohibitive Activities into Azgard Nine Limited ( ANL ), Period under review April 2, 2007 to July 13, 2007 & November 29, 2007 to April 22, 2008 , Securities & Exchange Commission of Pakistan, Securities Market Division. December 8, 2008.
  9. ^ Massive Fraud And Insider Trading Uncovered In Pakistan, Abdul H. Azeez, The Sunday Leader, January 02, 2011
  10. ^ Colombo Herald Aggregator, February 2011
  11. ^ Pakistan Economy Blog
  12. ^ Financial Institutions Report, Insider trading, Institute of Business Administration, Siraj and Khan, February 02, 2011
  13. ^ Business Week Profile, Ali Jahangir Siddiqui
  14. ^ Harassment of a role model entrepreneur
  15. ^ Jahangir Siddiqui case: Politically-motivated harassment alleged
  16. ^ Defamation: Jahangir Siddiqui sues for Rs5b
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