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Hascol Replies to Scandalous Allegations Doing Rounds on Social Media

Hascol Petroleum Limited has issued a detailed clarification over the allegations doing rounds on social media and messaging apps.

The company has denied the allegations, saying that the recent scandal regarding fake purchase orders does not relate to oil imports at all. To add a little background, Hascol has been under strict scrutiny and public criticism since 21 June when “false purchase orders” had surfaced on the company’s balance sheets.

Hascol also admitted in a letter submitted to the Pakistan Stock Exchange (PSX) manipulation in the accounts of 2019, and reported that it has accepted the resignation of the external auditor Grant Thorton for 2020 with immediate effect.


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The company’s Chairman, Alan Duncan, said in a statement that its internal auditor had received a whistleblower statement and evidence from within the company that a series of false purchase orders had been created and entered into its books in 2019.

According to the statement, “The internal auditor, as required by the procedure, referred the matter to the Board Audit Committee, which, at its meeting last week, concluded that there is sufficient evidence in support of the accusation to justify referring the matter to the full board of directors”.

Furthermore, on 28 June, the National Clearing Company of Pakistan Limited (NCCPL) had excluded Hascol Petroleum from the list of eligible securities that the PSX had placed the company into the defaulter segment.

The NCCPL informed the PSX in a notice on Monday that Hascol Petroleum Limited has been excluded from the list of SLB Eligible Securities, MF Eligible Securities, and MTS Eligible Securities with immediate effect from Monday, 28 June 2021.

Even after all this, Hascol found itself at the receiving end of a defamation campaign on Whatsapp according to which the company had allegedly been involved in the misleading reporting of import figures for oil. On Tuesday, 6 July, the company issued a detailed statement clarifying its position against these claims.

The statement detailed that while there is evidence of fake purchase orders against the company’s fixed assets, it is not linked with the oil imports, and the claims are “entirely baseless as all oil imports are managed through a well-structured duly regulated process”.

Hascol said that it “reserves its legal rights to take action against the sources of this disinformation”.

The statement accentuated the qualifications of its chairman, and reported a former UK Minister, Sir Alan Duncan, and the company’s CEO, Adeeb Ahmed, as saying that the two officials are working tirelessly to turn the company around and bring it back on a sustainable footing in coordination with the Board and the wider management.

Hascol’s statement added that the pandemic has caused losses to the entire oil industry in Pakistan, including Hascol, but it “is making due progress towards ameliorating its financial position, and is hopeful that its outlook will be positive”.


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The statement also detailed that “The legacy of its recent past, however must be addressed and Hascol’s Board aims to deal with its regulators transparently and is prepared to make any adjustments, if ever required, to its financial statements,” and that “Hascol is committed to return to its successful trajectory in the near future”.



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