Karachi January 24 2022: FIA to probe issuance of Non Product Supplied LCs opened by Byco Petroleum Pakistan Limited (now named as Cnergyico Pk Ltd) in favor of Hascol Petroleum Limited as a criminal enquiry, as per document of FIR registered against HPL.
BYCO Petroleum Pakistan Limited (now named Cnergyico Pk Ltd) has opened Non product Supplied LCs of an amount equivalent to PKR 154 billion in favor of Hascol Petroleum Limited over the period of six years, as per the documents.
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BYCO Petroleum Pakistan Limited (now named Cnergyico Pk Ltd) and hereinafter referred to as Byco, opened its first LC in favor of Hascol Petroleum Limited (HPL) on October 16, 2015 in collusion with senior NBP officers. HPL fraudulently issued false documents to cater for the LC requirements, without any underlying trade transaction l.c. without movement of goods / products and routed the discounting proceeds back to Byco.
Such LCs are hereinafter called Non-Product Supplied (NPS) LCs. Emboldened by this practice, HPL also started misusing their NBP LC facility by opening NPSLCs in favor of BYCO, which fraudulently discounted them (based on false BYCO documents accepted by HPL) without any underlying trade transaction l.e. without movement of goods products and routed the discounting proceeds back to HPL. This scam was carried out on reciprocal basis.
The incrimination of the part of Byco will be probed as a separate criminal enquiry. FIA Investigation of HPL has determined that mere Incompetence and Institutional failure alone were not the sole cause of these reckless lending decisions. Evidence has been recovered which proves that HPL used to siphon off funds through middle-men for bribing their Bankers. In Just one such instance, cheques for PKR 117 million were issued by HPL to Mr. Tahir Ali and his several companies without any underlying contract(s). These middlemen are yet to be investigated in detail and their roles will be defined in the Detailed Investigation Report.
