NBP lends Rs18.8bn in Hascol’s Rs54bn scam

NBP lends Rs18.8bn in Hascol’s Rs54bn scam

KARACHI: National Bank of Pakistan (NBP) has lent an amount of Rs18.8 billion out of Rs54 billion scam in Hascol Petroleum Limited.

National Assembly Standing Committee on Finance and Revenue on Thursday reviewed the performance of NBP.

The committee also discussed the recent Hescol loan scam of Rs 54 billion; of this NBP had lent Rs18.8 billion. MNAs expressed their reservations on loan security procedures, mainly when the amount of loan was so big.

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The committee expressed dissatisfaction over the performance of the bank and emphasized on more corrective steps on administrative and financing sides; especially for financial inclusion in rural and remote areas of the country.

Headed by MNA Faizullah, NA standing committee members included Abdul Wasay, Chaudhry Khalid Javed, Dr. Nafisa Shah, Ali Pervaiz Malik, Muhammad Israr Tareen, Qaiser Ahmed Sheikh, Faheem Khan and Jamil Ahmed Khan.

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The chairman formed a sub-committee to look into the issues/queries raised by the standing committee members, and the discrepancies surfaced in the bank’s lending and administrative matters.

It will submit its detailed report to the main NA standing committee at the earliest for its recommendations to the concerned government authorities through the National Assembly.

Earlier, NBP’s Group Heads gave sector-wise presentations to the Committee.

The committee members desired that NBP President, who was on leave, would have been present and could better respond to their queries.

A day earlier, the bank said it was cooperating with the Federal Investigation Agency (FIA) in the multibillion scam.

READ MORE: NBP announces Rs17.04 billion as half year profit

The FIA arrested Mumtaz Hasan, founder of the Hascol Petroleum Limited (HPL), on January 23, 2022. It said a total of 30 suspects — including present and former top officials of the NBP, HPL and other organisations — had been booked in the case and that efforts were under way to arrest the remaining suspects.

“As has been reported in the press, the FIA is conducting an inquiry on Hascol Petroleum’s banking arrangements with the NBP as well as several private and other public sector banks,” the NBP said.

The bank said it had been and continued to cooperate fully with the FIA on this investigation and made available all relevant records and transactional history, including arranging meetings with its employees who have managed Hascol’s relationship with the bank.

READ MORE: Probe in Hascol financials underway: SECP

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