Unity Foods officials denied bail, court proceedings adjourned
Four current and former Unity Foods executives remain in custody after bail applications were rejected, and the case has been postponed to September 12.
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Open on Business Recorder## Court Update
Four officials of Unity Foods Limited, a listed company on the Pakistan Stock Exchange, were denied bail by the Federal Investigation Agency (FIA) and remain in custody. The court has adjourned the hearing to September 12.
## Accused Individuals
The bail applicants include former Chief Financial Officer Jalees Edhi, director Safdar Sajjad, former director Abdul Majeed Ghaziani, and Amir Shehzad, who served as a director of Unity Foods and later as CEO of its subsidiary Sunridge Foods.
## Background of the Investigation
The case stems from an FIR filed by FIA’s Corporate Crime Circle on August 29, alleging massive misuse of funds at Unity Foods. The Securities and Exchange Commission (SECP) highlighted suspected criminal breach of trust, falsification of accounts, misuse of company and shareholders’ funds, and possible money‑laundering.
## Allegations and Financial Impact
Key allegations include: - A Rs44.7 billion discrepancy between published financial statements and internal SAP records. - An inventory shortfall of about Rs5.2 billion. - Approximately Rs5 billion in receivables without evidence of delivery. - Diversion of roughly Rs2.87 billion from a Rs3.75 billion rights issue. - Payments totaling Rs5.318 billion involving the former CEO’s mother and other related‑party transactions.
## Ownership and Investor Concerns
Unity Foods is about 34 % publicly held, with Singapore‑based Wilmar International owning roughly 42 % and the former CEO’s family holding about 24 %. Wilmar has recorded a $150 million provision linked to its investment in Unity Foods, underscoring the potential impact on foreign investors.
## Ongoing Legal Proceedings
In addition to the criminal case, Unity Foods faces several civil matters before the Islamabad High Court and the Sindh High Court, including challenges to SECP’s investigation orders, alleged insider trading, and a proposed takeover of Al‑Shaheer Corporation Limited.