08-02-2008, 05:58 PM
A citizen Faisal Kothari says that the first time in corporate history of Pakistan a certain corporate entity through its usual audited accounts, recently announced a modest after tax profit. Only after no less than a period of whole 10 days chewed its words and withdrawing its figures announced a sizable loss after-tax. In the process the investors believing the words of announcement invested in its in the unduly swollen shares and lost most heavily when these shares came tumbling down on the âerroneousâ figures withdrawn and substituted with âcorrect figuresâ. He is surprised that no regulatory authority had so far come out as to how the said entity was allowed to seek investment from the public on premium.
The innocent Faisal till today does not know that Corporate Law Authority, SBP etc have no interest with the common man. For example it is a common feature the Development Authorities only inform the public about legal status of any housing project only when they are sure the advertiser had pocketed much money. For example a housing project was announced in daily newspapers in 1992 and after 8 years when public had paid all balance installments and extra charges, in 2000 Rawalpindi Development Authority announced that its NOC reference mentioned in 1992 advertisement was not issued by it. The other example is seeing the mushroom growth of lucky draw installment schemes in 1985 when the Federal Ombudsman advised Ministry of Finance to stop these schemes, the examplory reply came from the then Corporate Law Authority (now Exchange Commission of Pakistan) advising the Ombudsman that CPL should not intervene in the matter as when public will suffer it will itself refrain from indulging in such schemes. This speaks a lot and same attitude almost in all respects whereas ordinary public is concerned persists.
No illegality or public fraud can be committed unless there is an internal blessing hand and in our beloved country State Bank, SECP and Development Authorities have played the major roe in depriving the public of their savings and causing damage to the economic foundations of the country. All these authorities, not surprisingly, always wake up when the looters have pocketed sufficient enough.
Huffaz Seamless Pipe Factory is the one share of which lost about 75% of its face value. During the last 20 years it ha hardly given 8-10 times Dividend and that too a small amount only to fill up mandatory fie requirements. It share had bee floating around R. 4 to Rs. 5 till last year. About three months back the SECP allowed this company having a too bad record of dividend to offers its Right Shares at a premium of Rs. 25/- (Rs. 35 per share). All of a sudden before offering right shares the companyâs share touched Rs. 90/- at trading floor. It is the same game as the above reader Faisal quoted namely allowing the company artificially increase its figures, allure pubic pockets, when public pockets have been cleaned come to real figures.
The innocent Faisal till today does not know that Corporate Law Authority, SBP etc have no interest with the common man. For example it is a common feature the Development Authorities only inform the public about legal status of any housing project only when they are sure the advertiser had pocketed much money. For example a housing project was announced in daily newspapers in 1992 and after 8 years when public had paid all balance installments and extra charges, in 2000 Rawalpindi Development Authority announced that its NOC reference mentioned in 1992 advertisement was not issued by it. The other example is seeing the mushroom growth of lucky draw installment schemes in 1985 when the Federal Ombudsman advised Ministry of Finance to stop these schemes, the examplory reply came from the then Corporate Law Authority (now Exchange Commission of Pakistan) advising the Ombudsman that CPL should not intervene in the matter as when public will suffer it will itself refrain from indulging in such schemes. This speaks a lot and same attitude almost in all respects whereas ordinary public is concerned persists.
No illegality or public fraud can be committed unless there is an internal blessing hand and in our beloved country State Bank, SECP and Development Authorities have played the major roe in depriving the public of their savings and causing damage to the economic foundations of the country. All these authorities, not surprisingly, always wake up when the looters have pocketed sufficient enough.
Huffaz Seamless Pipe Factory is the one share of which lost about 75% of its face value. During the last 20 years it ha hardly given 8-10 times Dividend and that too a small amount only to fill up mandatory fie requirements. It share had bee floating around R. 4 to Rs. 5 till last year. About three months back the SECP allowed this company having a too bad record of dividend to offers its Right Shares at a premium of Rs. 25/- (Rs. 35 per share). All of a sudden before offering right shares the companyâs share touched Rs. 90/- at trading floor. It is the same game as the above reader Faisal quoted namely allowing the company artificially increase its figures, allure pubic pockets, when public pockets have been cleaned come to real figures.