The Federal Investigation Agency (FIA) has asked major banks to do business with scrupulous Oil Marketing Companies (OMCs) and refineries after the latter exhibited reluctance to extend credit limits to them following an investigation against officials of the National Bank of Pakistan (NBP) and a particular oil marketing company.
In a letter written to presidents of all major commercial banks, the FIA said that it was conducting a criminal investigation against NBP officials for their alleged involvement in facilitating M/S Hascol Petroleum Limited with malafide intention, resulting in a 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 conviction of the those involved in criminal acts,” the FIA letter said.
It said that “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”.
The FIA letter further said: “recently, this agency is informed that banks are showing hesitation in doing business with OMCs apparently due to the above-referred investigation undergoing in this agency.”
It said that “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 deems fit as per law.”
“This agency also unequivocally assures all the 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,” the FIA letter concluded.
