The Federal Investigation Agency (FIA) has registered a case against the chief executive officer of GO Petroleum and several other individuals over the alleged illegal sale of bonded petroleum products, which reportedly caused losses worth billions of rupees to the national exchequer.
According to a first information report registered by the FIA’s Corporate Crime Circle in Karachi, the suspects allegedly diverted bonded petroleum products to the local market without completing the required customs procedures or paying applicable duties, taxes and petroleum levy.
Bonded petroleum products remain under customs control and cannot legally be sold, removed or consumed until the importer files the required customs declaration and clears all government charges.
The FIR stated that the fuel was transported from Port Qasim to Mehmoodkot through the White Oil Pipeline and the PARCO pipeline network while it was still officially under bond.
The FIA alleged that company officials manipulated records and used forged documents to hide the irregularities and facilitate the sale of the petroleum products in the domestic market.
Seven individuals and two companies have been named in the case. They include GO Petroleum Chief Executive Khalid Riaz and Terminal One Chief Executive Fiaz Ahmed.
The suspects have been booked under different provisions of the Customs Act, 1969, the Pakistan Penal Code and the Prevention of Corruption Act, 1947.
Investigators are examining financial records, import documents and related transactions to determine the scale of the alleged fraud and calculate the total loss caused to the national treasury.
The FIA is also investigating the possible involvement of customs officials posted in Port Qasim, Faisalabad and Lahore, as well as officials of the Oil and Gas Regulatory Authority.
No personnel from the pipeline operators have been named as accused at this stage of the investigation.
The agency said the investigation had been expanded and more individuals from the public and private sectors could be included in the case if evidence of their involvement emerged.
FIA Assistant Director Umayad Arshad Butt has been assigned to lead the investigation. The case has also been forwarded to two special courts in Karachi, according to the FIR.
GO Petroleum did not immediately respond to a request for comment from ProPakistani.
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