Monday 26 February 2018

Random thoughts 25022018

#PNBfraud The Punjab National Bank MD Sunil Mehta has been reported to have given a most valuable input and earth shattering information about the fraud that has come out in the open. He has divulged that the scam was first detected by PNB officials at first in 2011 and they have reported it to the concerned agencies.

Now, this has made some people go delirious with joy for the simple reason that the genesis of the fraud can be linked and its responsibility fixed to the previous UPA regime. Let me first remind them that if the agencies under the UPA government can be blamed for sitting over the information for 3 years then they have also incubated this fraud-egg for 4 years, no less, under NDA. That should make them shut up and think, but probably I am too optimistic about their abilities to think and to understand. Be it a joke, a sarcasm or even a lesson.

Turning to the other mundane inferences from the information provided by the MD , it is clear that the top brass of the Bank and the auditors knew about the fraud at least the irregularities since 2011. Still, they suppressed the information from the public domain. That includes their depositors and shareholders. For seven years they withheld the information and behaved normally. Meanwhile, they continued to proceed with other normal (??) banking activities including increased exposure to the alleged fraudsters and other such people. In the passing, they picked up awards for the best vigilant bank or something like that.

I mean, come to think of it. The fraud has not been perpetrated by the Chokshi - Modi combine on the bank. But it is a fraud committed by the officers of the Bank on the whole nation. Tell me, how is this different from the Chit fund scams that we talk about so much.

PNB is a corporate entity, a listed company on the stock exchanges and has to make statutory declarations. For seven long years, it conspired silently against the interests of its shareholders. What about that? Was this fraud ever discussed in their Board meetings? What were the government appointees, workmen directors , and independent directors doing? Are these people selected to warm their fat arse during Board meetings?

All the past PNB MDs, Chief Vigilance Officers, Auditors and senior officers who aided and abetted this suppression of fact should be immediately arrested and proceeded against. I have myself worked in a Bank as an officer and also participated in union activities. But I do not support shielding of people responsible for corruption either due to corruption, suppression, indecision, negligence or plain stupidity. They should be identified, without fail. What action is taken against them is a matter to be dealt with under the extant law, rules, regulations, and policies.

I know many of my friends in the banking industry will feel surprised or hurt at my above comments. But I can't help. Any misplaced sense of loyalty can't keep me anymore oblivious to the complicity, implied or explicit of bankers to these financial frauds. Even if spitting upwards make it fall on my face, I have to say this.

And yes, it is not only the top brass, all bank employees have to bear the moral responsibility of such frauds. They can't crib, cry and shift the blame. They have to prove that their collective strength is not only for increasing their salary after every five years. They have failed in performing their duties to the nation by keeping silent or ignorant about these frauds. If they are not conspirators then they are idiots, they have to admit that. And, why should idiots be paid or hired?

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