ISLAMABAD: After industrial banks present reluctance to increase credit score to grease advertising firms (OMCs) and refineries, the Federal Investigation Agency (FIA) has intervened and guaranteed assist to the industrial banks in doing the banking operations with OMCs.
Following the initiation of an investigation by the FIA in opposition to the officers of the National Bank of Pakistan (NBP) allegedly concerned in facilitating M/S Hascol Petroleum Limited with malafide intention, the banks had refused to increase credit score limits to OMCs, refineries of the nation. However, now the FIA has stepped in and guaranteed the industrial banks that the company’s investigation shouldn’t be a priority to these not responsible of misconduct/breach of belief.
Amir Farooqi, Director, FIA, in a letter dated March 18, 2022 to the Presidents of all industrial banks of Pakistan regarding the assessment of banking operations with Oil Marketing Companies (OMCs) mentioned that that FIA Sindh Zone I is conducting a felony investigation in opposition to officers of the National Bank of Pakistan (NBP) who’re authorities servants/ Bankers concerned in facilitating M/S Hascol Petroleum Limited with malafide intention leading to lack of billions of rupees to the financial institution by means of malpractices.
According to a letter of the Director, FIA, the investigation carried out to this point reveals felony negligence on the a part of the financial institution to comply with prudent banking practices. Basic goal of the investigation is to repair duty and guarantee conviction of these concerned in felony acts. Further, to obviate the danger of avoidable loss to the general public exchequer in future, and on the identical time, to boost the bar of due diligence and regulatory scrutiny/oversight on the applicable fora.
Recently, this company is knowledgeable that banks are displaying hesitation in doing enterprise with OMCs, apparently as a result of above referred investigation present process on this company.
In this connection, it’s to reassure that this company totally helps any and all efforts of the banking business to enter into any restructuring of its publicity to HPL because it deem match as per regulation ,” mentioned the FIA letter..
“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 FIA letter.
According to sources, the present complete working capital services out there with Parco is Rs 144,550 million, NRL Rs 105,850 million, PRL Rs 51550 million, CPL (Cnergyico Pk Limited) Rs 46550 million, and ARL Rs 3000 million.
It is related to notice that Oil Companies Advisory Council (OCAC) had earlier written a letter to the Governor of State Bank of Pakistan (SBP) and sought intervention after banks refusal to increase the credit score limits to OMCs/refineries. OCAC additionally warned the Governor SBP that hesitation of banks to increase financing services to OMCs, refineries might result in an oil disaster within the nation.
It is pertinent to say that President Arif Alvi has to this point granted sanction for placement of Rs20 billion within the project 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 position of Rs20 billion within the project 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,” mentioned a letter of the petroleum division.