Hundi system to be smashed: Rehman

ISLAMABAD - Advisor to the Prime Minister on Interior, Rehman Malik, on Tuesday said that Hawala system prevented inflow of foreign currency, which he said would be curbed at all costs.

While delivering his short statement in the Upper House of the parliament over the situation emerged after arrest of Munaf Kalia, leading money changer executive, Malik said that illegal flight of foreign currency through Hawala system had depreciated Rupee. He said FIA had taken action against Khanani and Kalia’s Chief Executive Officer after investigations having been carried out during the last three months.

He informed that so far only one of the twenty computers confiscated could be decoded, which revealed an outflow of Rs 39 billion. He said another US $ 32 million had been seized from Lahore, which he said was being illegally transferred. He said that moneychangers were misusing rules regarding free flow of foreign currency.

Malik further informed the House that FIA officials who had manhandled Munaf Kalia had been suspended. He said he had registered case against Kalia and Khanani with the help of expert legal aides to avoid possible violation of law. He said government would ensure rule of law and would allow no one to weaken the country’s economy through illegal means of money making.

Meanwhile, Senator Sadia Abbasi and Leader of the House in Senate, Senator Raza Rabbani engaged into a verbal brawl during Malik’s speech, in which he was informing the House on recent development over money laundering issue. Senator Abbasi was of the view that the issue was sub judice, therefore, she opined, the same should not be discussed in the House. She said discussion over the matter could have bearings over court proceedings.