crewsent
Crescent Standard Investment Bank Limited Governance Failure case analysis
Crescent Bank Fraud
The entire board of directors and CEO Anjum Saleem of Crescent Standard investment bank were legally stopped from running their offices on evidences of suspected fraud and irregular accounting. External Auditors had predicted a missing amount of over Rs.6 Billion, apart fromillegal maintenance of parallel accounts, concealment of bank assets, un-authorized massivefunding of group companies, unlawful investments in real estate and stock market, etc. the SECPtook legal action against the companies officers, although much of the actions taken werecriticized as insufficient.
Summary
The Crescent Standard Investment Bank Limited (CSIBL) was the greatest investment bank reported on all the stock marketplaces in Pakistan when it declared a massive insufficient Rs 2.1 billion (US$35.5 million) for your year December 31 2005 industry was surprised. The investment banking regulator Opportunities and Exchange Commission of Pakistan (SECP) had sent an organization to check out the matters in the bank. Since the primary traders were people or companies in the well known business group known to as Crescent Group there s enormous fascination with the CSIBL matters by financial and political circles.The case describes the different organizations that have been merged to produce the CSIBL mainly to guard the stakeholders by creating a company getting a sizable capital. The bank had reported within the annual reviews the interior control systems permanently governance stipulated with the SECP were in place as well as the auditors (internal and exterior) had reported they were acceptable. Yet when uncovered to have an analysis it absolutely was states the inside management was involved in many functions of misrepresentation and concealment. The case focuses on the flaws inside the structure in the corporate governance regime in Pakistan.
Company introduction
Crescent
Crescent Bank Fraud
The entire board of directors and CEO Anjum Saleem of Crescent Standard investment bank were legally stopped from running their offices on evidences of suspected fraud and irregular accounting. External Auditors had predicted a missing amount of over Rs.6 Billion, apart fromillegal maintenance of parallel accounts, concealment of bank assets, un-authorized massivefunding of group companies, unlawful investments in real estate and stock market, etc. the SECPtook legal action against the companies officers, although much of the actions taken werecriticized as insufficient.
Summary
The Crescent Standard Investment Bank Limited (CSIBL) was the greatest investment bank reported on all the stock marketplaces in Pakistan when it declared a massive insufficient Rs 2.1 billion (US$35.5 million) for your year December 31 2005 industry was surprised. The investment banking regulator Opportunities and Exchange Commission of Pakistan (SECP) had sent an organization to check out the matters in the bank. Since the primary traders were people or companies in the well known business group known to as Crescent Group there s enormous fascination with the CSIBL matters by financial and political circles.The case describes the different organizations that have been merged to produce the CSIBL mainly to guard the stakeholders by creating a company getting a sizable capital. The bank had reported within the annual reviews the interior control systems permanently governance stipulated with the SECP were in place as well as the auditors (internal and exterior) had reported they were acceptable. Yet when uncovered to have an analysis it absolutely was states the inside management was involved in many functions of misrepresentation and concealment. The case focuses on the flaws inside the structure in the corporate governance regime in Pakistan.
Company introduction
Crescent