Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Dawn from its Washington correspondent said Occidental of USA did not<br />
disclose the price in the document it submitted to the United States Security and<br />
Exchange Authority.<br />
According to a detailed report in weekly Takbeer, Karachi, January 23,1997, the<br />
acquisition of Occidental Petroleum which operates <strong>Pakistan</strong>'s second biggest<br />
oilfield at Dharnol in Potohar was facilitated by Asif Zardari who arranged a<br />
package of four loans from the Habib Bank and United Bank. The story is<br />
corroborated by the fact that the defaulters list published by caretaker Prime<br />
Minister Meraj Khalid listed Pak Company of Tempa, Florida, a Hashoo group<br />
company to be defaulting in the payment of loans worth Rs 264 million.<br />
For long, the Corporate Law Authority (CLA) has been asking Hashwani to<br />
convert Hashwani Hotels into a public limited company, as required by the 1984<br />
Company Law. He balked at the move on the plea that he was involved in<br />
litigation with his brother Akbar Hashwani. However, despite the litigation, CLA<br />
cleared the deal between Zever Petroleum and Occidental based on the<br />
mortgage of his equity in Hashwani Hotels and other companies.<br />
According to the article in weekly Takbeer, ten percent equity in Occidental<br />
<strong>Pakistan</strong> International is owned by Hashwani Hotels, 30% by <strong>Pakistan</strong> Services<br />
Ltd, adn balance by Zever Petroleum. Under the company law, approval of 51%<br />
shareholders of a listed company is required before an investment can be made<br />
in an associated company. At no annual general meeting, approval of<br />
shareholders of <strong>Pakistan</strong> Services Ltd was sought to invest in Occidental.<br />
Like Mansha and his associates who made a chain of inter-corporate investment<br />
to acquire privatized cement units, Hashwani painstakingly invested and divested<br />
in associated companies to reach the present heights. The controversial ICP loan<br />
which facilitated the take over of PSL provided him the bedrock on which he<br />
started building his empire.<br />
In 1990, PSL decided to invest 1.5 million pound sterling (Rs 60 million) in a<br />
foreign subsidy named Pearl Continental Overseas Ltd which in turn set up<br />
another wholly owned subsidy called Pearl Continental Inc. It was Pearl<br />
Continental Inc which acquired 75% shares in Pak Properties of Tempa<br />
operating 200-room Embassy Suites Boca, Raton, Florida. It was against this<br />
hotel in Florida that Hashwani negotiated a loan from United Bank to acquire<br />
Occidental <strong>Pakistan</strong>.<br />
Meanwhile the PSL management has paid only three dividens to shareholders,<br />
20% in 1986, 10% in 1990 and 15% in 1993, although huge amounts were<br />
transferred abroad and new assets acquired by pledging PSL shares. Money<br />
was also being siphoned off quite openly to other companies of Hashoo group.<br />
56