Senate Committee Directs SECP To Conduct Forensic Audit of HASCOL

The Senate Standing Committee on Finance and Revenue directed the Security and Exchange Commission of Pakistan (SECP) to conduct a forensic audit of HASCOL.

A meeting of the committee was held under the chair of Senator Muhammad Talha Mahmood. The SECP officials briefed the committee about the financial reporting matters of HASCOL.


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It was informed that the liabilities were increased from Rs. 24 billion to Rs. 48 billion in 2019 as compared to 2018. On the other hand, the HASCOL company went to a massive loss from profit in a few months. “A company which was operating with a profit of 956 million suddenly went to an enormous loss of Rs. 116 billion” SECP apprised the committee.

SECP officials further said that two investigations are underway against HASCOL, which will be completed in three months. Criminal or civil proceedings against the company will be done under the SECP Act.

Member of committee Senator Saleem Mandviwala said that it seems that the fraud had been planned for years, and a forensic audit should be conducted.

Senator Kamil Ali Agha said that such fraud is not possible if the auditing companies fulfill their responsibilities in a true sense.

Senator Musaddiq Masood Malik asked why the SECP did not take action as the company had taken illegal steps on such a large scale. The stock exchange should protect the capital of the shareholders, he added.


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Chairman Committee Senator Muhammad Talha Mahmood after consulting with Senators, gave suggestions regarding the forensic audit of the company. Furthermore, he also directed the SECP to take action against the audit firm that conducted the HASCOl audit.

The Chairman Committee also directed the SBP to furnish details of 18 banks who gave loans to HASCOl while he also asked to provide a list of those who have given guarantees to these banks against these loans in three weeks.