ISLAMABAD:

Takes action against officials for accepting cargo not in line with specificationBy Zafar BhuttaPublished: April 17, 201530SHARESShare Tweet Email

Pakistan State Oil (PSO) has unearthed fraud in the import of low sulphur fuel oil (LSFO)committed by certain officials of the company.

A cargo of 65,000 tons of LSFO, which arrived on April 2, was not in line with the specification, but certain officials of thecompany accepted the furnace oil, say sources.

These people misled the management as they claimed the oil had been according to the specification at the time of purchase andloading and the change in specification occurred during transit, the sources say.

Later, they told the management that the supplier was willing to pay any damages for providing the off-specification fuel.

After detecting the deceitful and unlawful activity, PSO has taken disciplinary action against the people who committed the fraud.It has also initiated an investigation into the matter.

An official has been suspended and the company is looking at the facts that led to the acceptance of LSFO that did not meet thespecification at the port of loading. The company will fix responsibility after the probe is completed.

The cargo was purchased on free-on-board (fob) basis as per the Contract of Affreightment with the Pakistan National ShippingCorporation whereby PSO was responsible for the product from the time of purchase. Therefore, the company was left with nochoice but to decant the fuel.

PSO is transporting the oil to its Lalpir storage where it will be blended with additives to bring it up to the specification and supplyto the customers at normal rates with no additional cost.

As the vessel came on fob basis, PSO had to offload the product and take it to its storage in order to correct the specification andsupply to the customer at normal rates, an official said. The impression that it will be supplied at discounted rates is wrong.

PSO stresses that the company being both a public sector as well as the nations leading oil marketing company, is dedicated toensuring transparency and fairness in all aspects of its business operations and continues to fuel the national economy in aresponsible manner.

Published in The Express Tribune, April 18th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

PSO detects fraud in oil import - The Express Tribune http://tribune.com.pk/story/871573/pso-detects-fraud-in-oil-import/

1 of 3 4/20/2015 1:46 AM