The Securities Exchange Commission of Pakistan (SECP) in its investigation has made Hascol Petroleum Ltd’s management and auditors responsible for the financial fiasco.
Sources said that the SECP, in its investigation on the first show-cause notice issued to Hascol in 2019 for inspection of financial records, has made responsible the oil marketing company management as well as auditors for over-invoicing of petroleum import.
The over-invoicing was used to secure extraordinary credits from banks, sources added.
Recently, the chairman of the board of directors of Hascol Petroleum Sir Alan Duncan in his article stated that Hascol has been facing a liquidity crisis as a result of its inability to pay its creditors.
The company owes Rs. 54 billion to 19 banks and DFIs however, We have made significant progress in talks with our creditors to restructure Hascol’s liabilities, and thereby create the necessary fiscal space to build back the company’s operations.
Sources said that SECP is also doing a forensic audit of accumulated debt based on fraudulent accounts and fake purchase orders in order to find the individuals who plotted the whole scam.
Meanwhile, the Federal Investigation Agency has also arrested an employee of Hascol in connection with this scam.
It is pertinent to note that the company’s auditors as well as members of its board and senior management had tendered their resignations when this scam emerged.
Earlier, the company approached the court for taking a stay order when SECP started an investigation against it. However, later on, it withdrew the case quietly.
Sources said that the company had also shared the overhauling and revival plan with the regulator and the latter has also considered this aspect in its investigations.
Sources also said that the adjudicating wing of SECP will conclude the investigation against the company into the second show-cause soon that was also issued in 2020 for inspection of financial records.
It is pertinent to note that Hascol Petroleum Ltd on November 15, 2021, reported a net consolidated loss of Rs. 25.2 billion for the year ended on Dec 31, 2020.
Source: Pro Pakistani