Islamabad August 24, 2021: Senate standing committee on Finance received a comprehensive briefing from the State Bank of Pakistan (SBP) and the Security and exchange commission of Pakistan (SECP) on the Financial reporting issue of HASCOL.
The committee was informed that in 2019, the liabilities increased from PKR 24 billion to PKR Forty-four billion as compared to 2018. The company was constantly investing in its new projects. 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 PKR 116 billion, an official of SECP apprised the committee.
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SECP officials told the committee that the SECP had issued its instructions to the company.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. 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 fulfil 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. The standing committee was directed to conduct a forensic audit of the HASCOL company. Chairman Committee, Senator Muhammad Talha Mahmood, in consultation with the Senators, gave suggestions regarding forensic audit of the company, auditors, penalties, and steps to be taken to empower the company.
The Chairman Committee sought the statements of 18 banks from the SBP in three weeks. The Chairman Committee said that a list of those who have given guarantees to these banks should also be provided.
