Staff Report
ISLAMABAD:
Following the refusal of the commercial banks to extend the credit facility to Oil Marketing Companies (OMCs), refineries, the Federal Investigation Agency (FIA) has intervened and assured support to banks for doing business with OMCs, refineries.
FIA, in a letter dated March 18, 2022 to the Presidents of all commercial banks, assured that the agency’s investigation should not be a concern to those not guilty of misconduct/breach of trust.
Following the initiation of an investigation by the FIA against M/s Hascol Petroleum Limited (HPL), the banks have been showing hesitation in doing business with OMCs apparently due to the investigation undergoing in FIA.
In this connection, it is to reassure that this agency fully supports any and all efforts of the banking industry to enter into any restructuring of its exposure to HPL as it deem fit as per law, said a letter of Amir Farooqi, Director, FIA.
“This agency also unequivocally assures all concerned that this investigation has been and shall continue to be conducted with the highest professional standards and should not be a source of concern to those not guilty of misconduct/breach of trust,” reads the FIA letter.
According to FIA, the FIA Sindh Zone-1 is conducting criminal investigation against officers of National Bank of Pakistan (NBP) who being government servants/bankers were involved in facilitating M/s Hascol Petroleum Limited with malafide intention, resulting in loss of billion of rupees to the bank through malpractices.
The investigation conducted so far reveals criminal negligence on the part of the bank to follow prudent banking practices. Basic purpose of the investigation is to fix responsibility and ensure conviction of those involved in criminal acts. Further, to obviate the risk of avoidable loss to the public exchequer in future, and at the same time, to raise the bar of due diligence and regulatory scrutiny/oversight at the appropriate for a, said FIA letter.
Earlier, President Arif Alvi has granted sanction for placement of Rs20 billion in the assignment account for reimbursement of Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) and refineries.
In a letter dated March 18, 2022 to the Accountant General of Pakistan, Petroleum division conveyed the sanction of the President to the placement of Rs20 billion in the assignment account titled Reimbursement of Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) and refineries
“It is requested that the Manager National bank of Pakistan Main Branch Karachi may be advised to arrange payment against the ceiling of Rs2 billion on the receipt of cheques and prescribed schedule of payment duly signed by the authorized signatories of the account,” said a letter of the petroleum division.
