Facts dug out so far show that Unity presently owns just Rs 900 million in the form of cash deposits, fixed assets and investment in hospitals and real estate. It has used the rest of the money to settle insurance claims by some 256 people. [break]
“Our investigations showed that Unity presently has only Rs 100 million in cash in different banks and financial institutions,” said a source.
Of that amount, IME Financial Institution and Nepal Investment Bank have deposits worth Rs 4.7 million and Rs 8.1 million respectively. Unity has invested Rs 60 million in a hospital in Pokhara, Rs 80 million in a hospital in Itahari and Rs 120 million in real estate through the Unity Real Estate and Housing company.
The company has used Rs 80 million to acquire a 58 percent stake in Central Rural Development Bank. The report also found that Unity has made an investment worth Rs 50 million on Reliable Investments, a company owned by Kalu Gurung.
Interestingly, the company has paid about Rs 25 million to take over Lifevision, another network marketing company, which came under the government axe and was closed last year on charges of evading tax and operating a faulty network marketing model.
Moreover, company records show that the total transactions of the company during fiscal year 2007/08 was just Rs 36 million. However, transactions last fiscal year increased dramatically to Rs 720 million.
“This indicates that the company´s business thrived mainly just over the last couple of years,” said the source. Before the government took action against the company, top brass at Unity had told myrepublica.com a few weeks ago that its members totaled 650,000, of whom 400,000 were Nepalis and 250,000 international clients.
They had boasted having mobilized over Rs 6 billion in cash from Nepali clients alone. The company also claimed to have remitted some Rs 3.7 billion it collected from its overseas operations.
However, the latest company balance sheet that investigators unearthed amounted to a mere Rs 200 million.
The joint team of the Department of Revenue Investigation (DRI), Nepal Rastra Bank (NRB) and the Insurance Board (IB), meanwhile, failed to submit its final report on Thursday also.
“We dug out all the facts related to it fraudulent activities and violation of banking and insurance laws. However, we could not yet conclude our investigations on possible violation of the Foreign Exchange Act (FEA), the Anti-Money Laundering Act and revenue laws because we managed to take control of the company´s crucial digitized data just today (Thursday),” said the source.
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