FIA supports banks entering into Hascol’s debt restructuring

March 21, 2022 (MLN): After commercial banks show hesitancy to extend credit to Oil and Marketing Companies (OMCs), Federal Investigation Agency (FIA) has intervened and reassured its support for all efforts of the Banking industry to enter into debt restructuring of Hascol Petroleum Limited (HPL).

Recently, the agency was informed that banks are showing hesitation in doing business with OMCs, apparently due to the investigation undergoing against Hascol Petroleum Limited (HPL).

“In this connection, it is to reassure that the Agency fully supports any and all efforts of the Banking industry to enter into any restructuring of its exposure to HPL as it deems fit, as per law,” FIA in its letter issued to president of all commercial banks said.

FIA Sindh Zone-I is conducting a criminal investigation against officers of the 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 billions 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. The basic purpose of the investigation is to fix responsibility and ensure the conviction of those involved in criminal acts. Further, to obviate the risk of avoidable loss to the public exchequer in the future, and at the same time, to raise the bar of due diligence and regulatory scrutiny/oversight at the appropriate fora.

FIA 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, it said.

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