Scams are common things nowadays. From scamming common people by offering them lucrative offers to scamming big banks, it happens everywhere. But what is the biggest scam in the history of Pakistan, whichever happened?
Biggest scam – Hascol scam!
Hascol Petroleum pulls out one of the biggest scams in the history of Pakistan. The scam of more than Rs54 billion was allegedly committed by Hascol Petroleum Ltd (HPL). At the end of January 2022, The FIA’s Commercial Banking Circle (CBC) has registered a case against 30 people in the case of financial fraud and money laundering.
These 30 people include former and current officers of the NBP, Vitol and Hascol. Director of the FIA’s Sindh Zone Amir Farooqi said that the total amount of default stood at Rs54bn, of which Rs18bn pertained to the NBP alone. Due to this Mumtaz Hasan, the founder of Hascol Petroleum Limited HSL was arrested on 23 Jan 2022.
How Hascol Petroleum Limited Scammed Pakistani Banks?
The scam was pulled out by showing Hascol petroleum overvalued and also using the credit line.
The credit line was used between Hascol, Vitol and Byco. In credit line, a company asks its bank(which is NBP in this case) to release a credit line or CL to the other company which is a document saying to another company which is BYCO to release oil/transfer oil to Hascol, and the payment will be issued in the next 30, 60 or number of days depending on the deal.
Byco then provides documents to NBP that it has already released the oil to hascol or only show in the paper that the oil is transferred to hascol. Now the Byco asks his bank to give him some money on some interest or discount and told his bank that when the money from hascol comes to NBP, you will recieve the money directly, then Byco gives this money secretly to Hascol to pay his payment to NBP. This cycle kept on going and going. Apart from the NBP, several other banks opened non-product LCs to the tune of Rs54bn for Hascol.
“Hascol and another company Vitol (exclusive supplier of POL products to HPL) through over-invoicing transferred $42 million illegally outside Pakistan,” said Mr Farooqi.
In short, the petrol/oil never arrives and the payment is done by taking another credit line. In this way, Hascol siphoned off funds through fake contractors to the tune of Rs117 million.
Top 10 Biggest Scam in History of Pakistan!!
These are the top 10 biggest scams in Pakistan:
- Shahbaz Sharif was under investigation for mishandling RS 126 million by misuse of authority in construction of a road from Raiwand to Sharif House
- Finance Minister Ishaq Dar has a case open for making assets that were above his financial reach
- Ex-President Asif Zardari has a case open for making assets beyond his financial reach, which worth around RS 22 billion
- The Rental Power case, corruption in water and power, is open against Raja Parvez Ashraf, Shaukat Tareen, Tahir Cheema and Shahid Rafi
- Ex-Caretaker PM Chaudhry Shujaat Hussain and Chaudhry Pervez Elahi are alleged for misusing their authority on RS 2.4 billion
- Ex-PM Yousuf Raza Gilani is being invested on an illegal appointment of Ogra Chairman Tauqir Sadiq. Tauqir Sadiq is involved in corruption worth RS 80 billion
- Former CM Baluchistan Nawab Aslam Raisani is involved in illegal recruitment and corruption of RS 100 million
- Balochistan Sports Minister Shah Nawaz Marri faces a case of RS 8 billion generated by misuse of authority
- Ex-Minister of Industries and Commerce Balochistan Mir Abdul Ghafoor Lehri has a fraud case open against him on his unanswered income of RS 8 billion
- Mian Mansha of Nishat Industries is facing charges on a huge fraud case of privatizing Muslim Commercial Bank.
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