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The FIA ​​steps in after commercial banks refuse to extend credit limits to OMC refineries

ISLAMABAD: After commercial banks show reluctance to grant credit to oil marketing companies (OMCs) and refineries, Federal Investigation Agency (FIA) intervened and secured support to commercial banks in do banking operations with WTO.

After initiation of an FIA investigation against the officers of the National Bank of Presumably Pakistan (NBP) involved. in facilitating M / S Hascol Petroleum Limited with intention of bad faith, the banks had refused to extend credit limits to WTOs, refineries of Village. However, now the FIA ​​has taken a step in and assured commercial banks that the agency’s investigation should do not be a concern for those who are not guilty of misconduct / violation of trust.

Amir Farooqi, FIA Director, in a letter dated 18 March 2022 to the Presidents of all commercial banks of Pakistan related to review of banking operation with The oil marketing companies (OMC) have said that the FIA ​​Sindh Zone I is leading a criminal investigation against officers of the National Bank of Pakistan (NBP) who I’m government employees / bankers involved in facilitating M / S Hascol Petroleum Limited with resulting bad faith intention in lost of billions of rupees per bank through unfair practices.

According to a letter of the Director, FIA, reveals the investigation conducted so far criminal negligence on the part of the bank to follow prudent banking practices. Fundamental purpose of the investigation is a fix responsibility e ensure belief of those involved in criminal acts. Furthermore, to overcome the risk of avoidable loss for the public chessboards in futuree, at the same time, raise the bar of due diligence e regulatory control / control in the appropriate locations.

Recently, this agency was informed that banks are showing hesitation in doing business with OMC, apparently due to the aforementioned investigations in course in this agency.

In this regard, it is to reassure that this agency fully supports all efforts of the banking sector to initiate any restructuring of its exposure to HPL as it deems appropriate by law “, reads the letter from the FIA.

“This agency also unequivocally ensures everything concerned that this investigation has been and will continue to be conducted with the highest standard professional and should don’t be a source of concern for the innocent of misconduct / violation of trust “, reads the letter from the FIA.

According to sources, the current total structures for working capital available with Park 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 important to note that the Oil Companies Advisory Council (OCAC) had previously written a letter to the Governor of State Bank of Pakistan (SBP) and called for action after banks refused to extend credit limits to WTOs / refineries. OCAC also warned the SBP governor of this hesitation of banks to extend financing facilities to WTOs, refineries could lead to an oil crisis in Village.

It is pertinent to recall that President Arif Alvi has so far granted the sanction for positioning of Rs20 billion in the assignment account for refund of Price Differential Complaints (PDCs) of Oil Marketing Company (OMC) and Refineries.

By letter dated 18 March 2022 to the General Accountant of Pakistan, oil division conveyed the sanction of the President to the placement of Rs20 billion in the transfer account called Refund of Price Differential Complaints (PDCs) of Oil Marketing Company (OMC) and Refineries

“It requires the National Bank Manager of Pakistan’s main branch, Karachi could be advised to arrange payment against the ceiling of Rs2 billion on receipt of checks and prescriptions schedule of payment duly signed by authorized signatories of the bill, “said a letter of oil division.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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