Hascol Petroleum notified on Tuesday that its board has authorised Chief Financial Officer Amad Uddin to exercise authority as Chief Executive Officer (CEO) after the trial judge refused confirmation of bail applications of CEO Aqeel Ahmed Khan along with others.

“Following today’s decision by the Trial Judge to refuse confirmation of bail applications from a number of individuals, in the matter of FIA Enquiry No. 127/2021, it has led to the detention of numerous persons, including the CEO of Hascol Petroleum Limited (HPL), Aqeel Ahmed Khan,” said Chairman of Hascol Petroleum Limited, Sir Alan Duncan, in a statement.

“While we are advised by the legal counsel representing the CEO that post-arrest bail should be granted, in the meantime, in order to operate the affairs of HASCOL, the board has authorised the CFO, Amad Uddin, to exercise the authority of the CEO until this issue is resolved or there is a further decision taken by the board,” the notice sent to the Pakistan Stock Exchange (PSX) added.

Hascol’s board approves ‘rehabilitation plan’

Last year in January, the Federal Investigation Agency arrested Mumtaz Hasan, founder of Hascol Petroleum Limited, as part of its investigation into the alleged Rs54-billion scam

“The FIA Commercial Banking Circle has registered a case against 30 suspects – including former and current officers of the National Bank of Pakistan and Hascol – and one suspect has been arrested after pieces of evidence came to light in an inquiry into bank default, financial fraud and money laundering of more than Rs54 billion by the Hascol Petroleum Company,” read a FIA statement back then.

SECP appoints Parker Russel AJS to ‘conduct fraud investigation/forensic audit’ of Hascol

Meanwhile, the OMC has filed a scheme of arrangement under which its debts can be formally restructured within the court system.