FIA books Go Petroleum executives in alleged multi-billion rupee tax, levy evasion case

ISLAMABAD: The Federal Investigation Agency (FIA) has launched a major crackdown against Go Petroleum by registering a case over the alleged illegal sale of over 32,000 metric tonnes of bonded petroleum products, accusing the company and its senior officials of causing multi-billion rupee losses to the national exchequer through alleged evasion of customs duty, taxes and petroleum levy.

According to the FIR, the FIA's Corporate Crime Circle Karachi has initiated an investigation into allegations that bonded petroleum products were sold in violation of applicable laws and regulations. 

The News reported, that the FIR accuses that the petroleum importer and a Customs-licensed bonded fuel terminal operator at Port Qasim of diverting imported petroleum products into the market while the fuel was still under bond. The alleged irregularity came to light during a physical inspection on June 22 at a storage terminal in Mehmoodkot, Muzaffargarh. 

Investigators said the terminal had only 7,039.7 metric tonnes of bonded gasoline, although customs and pipeline records showed that more than 39,000 metric tonnes should have been available. The shortfall was calculated at around 32,081 metric tonnes. 

The FIR said the fuel had been transported from Port Qasim to Mehmoodkot through another oil company’s cross-country pipeline network. Since the product was under bond, it could not be sold, removed or consumed before payment of import duties through a separate customs filing, which investigators said was not made for the missing quantity.

The agency also alleged that about 4,744 metric tonnes of bonded high-octane fuel had earlier been sold from the Port Qasim terminal without the required customs documentation. Investigators said this was supported by data recovered from a terminal manager’s laptop.

The agency alleged that the unlawful sale of these products resulted in substantial financial losses to the national treasury.

The FIR names the Chief Executive Officer of Go Petroleum along with several other company officials. They face allegations of evading customs duty, taxes and petroleum levy through the alleged illegal disposal of bonded petroleum products.

The FIA further alleged that official records were manipulated and forged documents were used to facilitate the alleged fraud and conceal the transactions. The case has been registered under provisions of the Customs Act, the Pakistan Penal Code and anti-corruption laws. 

Investigators have widened the scope of the probe to determine the extent of the alleged financial irregularities and identify all those involved.

The Corporate Crime Circle Karachi is also examining whether additional individuals from both the public and private sectors played a role in the alleged offences.

Industry sources said that the exact financial impact on the national exchequer is still being assessed, while investigations into the alleged multi-billion rupee irregularities have been accelerated.

The FIA has yet to announce any arrests in the case, and the investigation remains underway.

Responding to the allegations, a GO Pakistan spokesperson said that the company continues to clear its statutory obligations within applicable payment cycles and, according to company records, remains current on tax and levy liabilities due against it.

The spokesperson said the company is cooperating with the relevant authorities and will continue to engage with stakeholders transparently. The company said it would not comment on specific details while the matter is under review, adding that it remains committed to compliance and uninterrupted supply to customers