Financial Crime World

Major Developments in Pakistan’s Financial Sector: Special Banking Court Rejects Interim Bails of 16 Officials in Rs54 Billion Financial Fraud Case

Detained Officials from National Bank of Pakistan and Petroleum Companies

In a significant turn of events in Pakistan’s financial sector, a Special Banking Court in Karachi, on February 20, 2023, rejected the interim bails of 16 officials, including eight from the National Bank of Pakistan (NBP) and eight from petroleum companies such as Hascol Petroleum Limited (HPL), Byco, and others (FIA press release). The officials were taken into judicial custody following the court’s decision.

Charges of Financial Fraud, Breach of Trust, Money Laundering, and Other Offenses

The Federal Investigation Agency (FIA) had earlier booked these individuals in 2022 on charges of financial fraud, criminal breach of trust, money laundering, and other offenses. The case, registered under sections 477/471/468/420/409-A/109 PPC r/w 5(2) of PCA 1947 r/w 3/4 AMLA 2010, revealed alleged violations of banking laws, causing significant losses to the national exchequer.

List of Detained Individuals and Their Designations

  • Saleem Butt
  • Tahir Ali
  • Khurram Shehzad Veenjhar
  • Usman Shahid
  • Nawabzada Akbar Hassan Khan
  • Rima Athar
  • Wajahat A. Baqai
  • Tariq Jamali
  • Muhammad Saleem Saleemi
  • Muhammad Asmar Atique
  • Syed Jamal Baquar
  • Muhammad Ali Ansari
  • Saeed Ahmed
  • Syed Hassan Irtiza Kazmi
  • Aqeel Ahmed Khan
  • Muhammad Ali Haroon

Proclaimed Offenders and Absconder

Four accused, Muhammad Hamid Khan, Abdul Aziz Khalid, and Farid Arshad Masood, have been declared proclaimed offenders in the case. Another accused, Syed Ahmad Iqbal Ashraf, is currently an absconder.

Arrested Official from Hascol Petroleum Limited

Mumtaz Hassan Khan, a founding director of Hascol Petroleum, was also arrested in the case.

Named Accused from ‘Partner’ Companies

Additionally, 30 officials from ‘partner’ companies, including Vitol, Fossil Energy, and NBP, were nominated in the same case.

Statement from Hascol Petroleum Limited

Following the detention of CEO Aqeel Ahmed Khan, Hascol Petroleum Limited issued a statement to the Pakistan Stock Exchange (PSX), confirming his departure and granting CFO Amad Uddin the authority to act as CEO until further notice.

FIA press release

Consequences and Anticipated Outcomes

The financial fraud case, currently valued at around Rs54 billion, is being closely monitored by regulators and financial institutions in Pakistan. This is the biggest financial scam to be uncovered in recent years in Pakistan and is expected to set a strong precedent for stricter enforcement of banking regulations in the country.

References

This article is based on news reports and statements issued by the Federal Investigation Agency and the Pakistan Stock Exchange.

  1. “Special Banking Court Rejects Bail Applications of NBP, Hascol Officials,” The News International, February 21, 2023.
  2. “FIA Books National Bank of Pakistan, Petroleum Officials for Alleged Financial Fraud,” Dawn, January 12, 2023.
  3. Hascol Petroleum Limited, “Notice to Members of the Exchange,” Pakistan Stock Exchange, February 21, 2023.