Court denies bail to four current, former officials

Mettis Global reports that a court has rejected bail requests from four people who are current or ex-officials of Unity Foods, linked to alleged financial discrepancies of Rs44.7 billion. The next hearing on those applications is set for September 12, and the four are currently held in custody. The Federal Investigation Agency lodged proceedings against the firm's previous leadership, acting on a reference from the SECP.

The probe centers on a gap between the published accounts and the in-house SAP data, which casts doubt on the firm's reported financial position. Officials are also scrutinising the use of Rs2.87 billion raised via a rights issue, while a Rs5.2 billion inventory gap is under review. Around Rs5 billion in receipts is being examined because proof of matching goods deliveries could not be found, and Rs5.31 billion in payments that allegedly went to the former chief executive's mother are also being looked into.

Individuals named in the case include the former chief executive, and a separate probe into alleged insider trading in the company's shares is also under way. Public shareholders hold around 34% of Unity Foods, which trades on the PSX, while Singapore-based Wilmar International owns around 42%. Wilmar has booked a provision of approximately $150 million tied to its stake, and court proceedings over the proposed acquisition by Al Shaheer Corporation remain pending.