SECP monitoring Hascol Petroleum's operations, investigating possible corruption

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is constantly monitoring the affairs of Hascol Petroleum Limited in a bid to safeguarding the interests of minority shareholders as a corporate regulator. 

Responding to a the query of this scribe, SECP said that it is aware of the current situation and the recent events disclosed by Hascol.

"SECP has already taken cognizance relating to the affairs of Hascol and requisite regulatory actions are in process under the relevant applicable laws," the commission replied. 

Sources said that the enforcement department of SECP had summoned officials of Hascol twice in the past few days as part of an ongoing inquiry.

It is pertinent to mention here that Hascol Petroleum Ltd. recently informed the Pakistan Stock Exchange (PSX) that the company's internal auditor revealed evidence that in 2019, a series of false purchase orders were created and entered into the company book.    

Besides, the Board of Directors (BoD) in its last meeting had approved the resignation of its external auditors for the year 2020, Grant Thornton Chartered Accountant,  Anjum Rahman.

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

It added that the pandemic has caused losses to the entire oil industry in Pakistan, including Hascol; however, it is making due progress towards ameliorating its financial position, and is hopeful that its outlook will be positive.