Serious financial, administrative and corporate governance concerns have been raised over a Rs. 556.8 million solar panel transaction involving Pak Datacom Limited, with a request submitted to the Securities and Exchange Commission of Pakistan (SECP) for an investigation.
A 23-page complaint, supported by internal company records, correspondence and documents related to Pak Datacom’s solar business, alleges that normal procurement, commercial, internal audit and computerized recording procedures were potentially bypassed during the purchase and sale of solar panels in May and June 2026.
Pak Datacom officials Ali Saleem Rana and General Manager Waseem Ahmed rejected the allegations, saying they were made by the company’s former chief executive and had no basis in fact. They maintained that major business and financial decisions are taken with approval from the Board of Directors and in accordance with company rules and procedures.
According to the complaint, Pak Datacom paid Rs. 556.828 million in advance to Karachi-based MSBI for the purchase of solar panels through cheque No. 68817614 on May 25, 2026.
The complaint claims that the solar panels were subsequently sold to another Karachi-based company, Fabrica, with invoices issued in June. Around Rs. 556 million was reportedly expected to be received from Fabrica by August 31, 2026.
The complainant has questioned the commercial rationale and execution of the transaction and alleged that the deal may have been used to increase reported revenue before the close of the financial year.
The complaint alleges that the purchase and subsequent sale of around 20 to 30 containers of solar panels were largely paper transactions.
It further alleges that certain warehouse-related documents or gate passes may have been prepared without corresponding physical movement or delivery of the goods.
However, the documents provided do not contain conclusive evidence proving that the transaction was fictitious or that the alleged irregularities occurred.
The complaint also raises questions about the relationship between MSBI, the alleged supplier, and Fabrica, the buyer.
It alleges that the two entities could potentially have a common interest or connection. However, the documents accompanying the complaint do not include SECP records establishing common ownership between the two companies.
The complaint further claims that several officials involved in Pak Datacom’s commercial and solar operations were allegedly not fully informed about the transaction.
These reportedly included the Chief Commercial Officer, General Manager South, Deputy General Manager Solar Business, Senior Manager Marketing and account managers associated with the solar business.
Questions have also been raised over whether the procurement, finance and internal audit functions were adequately involved in the transaction.
The complainant has alleged that the transaction was not subjected to a pre-audit despite the company’s approved policies and that the purchase and subsequent sale were not fully processed through the company’s Odoo computerized system.
The documents show that Pak Datacom had already entered the solar business before 2026.
The company’s solar business was presented at the 214th Board meeting held on October 26, 2022, where approval was reportedly granted for the import of up to 48 containers annually.
After import restrictions and foreign exchange constraints eased, Pak Datacom began directly importing solar panels from Chinese manufacturer LONGi in August 2023.
According to an April 2025 business plan, the company had imported and sold 25 containers, equivalent to around 10.7 megawatts of solar panels. The document reported revenue of around Rs. 364 million and net profit of Rs. 32.15 million, although Board member Shamim Ahmed Shirazi disputed the calculation and estimated net profit at around Rs. 28.9 million.
On April 18, 2025, former CEO Brigadier (retd.) Syed Zulfiqar Ali reportedly submitted a solar business plan to the chairman and Board members.
The plan proposed importing 80 to 100 containers during FY2025-26. For 100 containers, it estimated costs of around Rs. 1.486 billion, revenue of Rs. 1.634 billion and profit of Rs. 148.6 million.
The proposal also included plans to expand into other solar panel brands, inverters, lithium-ion batteries, supercapacitors, local inverter manufacturing and complete solar solutions.
The chairman subsequently suggested that the strategic proposal should first be reviewed by the Strategy and Planning Committee.
The complaint compares the 2026 transaction with Pak Datacom’s previous direct-import model and claims that importing directly from LONGi had been more profitable.
It alleges that the new transaction through a local supplier generated a relatively lower margin after taxes and other expenses.
The complaint estimates that keeping around Rs. 500 million in a commercial bank for approximately three months could have generated between Rs. 12.5 million and Rs. 15 million in returns, compared with an estimated net profit of around Rs. 10.5 million from the solar transaction after associated expenses.
These calculations remain part of the complainant’s claims and have not been independently verified.
The complaint also links the transaction to Pak Datacom’s financial performance.
It points to the company’s nine-month results released on April 30, 2026, claiming that earnings per share had declined significantly compared with the previous comparable period.
The complainant alleges that recording more than Rs. 500 million in solar sales before the financial year-end may have helped increase reported revenue.
The complaint also refers to an alleged statement by Ali Saleem Rana during an employee meeting on July 23, 2026, regarding the potential impact on company revenue and employment if the solar business had not been undertaken.
The complainant claims to possess an audio recording of the remarks, but the recording was not included in the documents provided.
The 23-page complaint raises concerns beyond the solar transaction, including certain expenditures made between July 2025 and June 2026.
It alleges that more than Rs. 62 million was spent on vehicles, including a Toyota Fortuner and Isuzu pickups, while more than Rs. 20 million was allegedly spent on Board and committee meetings and related compensation.
The complaint also raises questions about salary increases and employee performance ratings during the period.
These allegations have also not been independently established.
The complainant has asked the SECP to investigate the Rs. 556.8 million solar transaction, examine the role of management officials involved and determine whether the chairman and Board members fulfilled their responsibilities under the Companies Act, 2017.
The complaint also cites relevant provisions of the Companies Act and the Listed Companies (Code of Corporate Governance) Regulations, 2019.
It additionally calls for examination of possible money laundering, misuse of funds and potential commissions or financial benefits connected to the transaction. No conclusive evidence supporting these allegations was included in the material provided.
Responding to the allegations, Ali Saleem Rana and General Manager Waseem Ahmed said the claims were being made by the company’s former CEO and were not based on facts.
They said important financial and business decisions at Pak Datacom are not made at an individual’s discretion but are subject to Board approval and established company procedures.
According to them, the matters in question were handled with the required approvals and the company maintains relevant legal, financial and business records.
The matter now remains subject to any further proceedings or investigation by the relevant authorities.
