Bank of Punjab Scandal Unleashed

Topics: Corporate governance, Corporation, Director Pages: 4 (1139 words) Published: November 16, 2012
Over Rs 17bn more loans revealed by Hamesh Khan |
Names four Bank of Punjab directors who got benefits for themselves| By Ansar Abbasi|
ISLAMABAD: Hamesh Khan’s stunning revelations before the NAB investigators have taken the lid off a unique scandal of the banking history in which the Bank of Punjab offered loans worth billions of rupees to the business concerns of its directors.

Sources said that all these directors were associated with the Bank of Punjab during Pervez Elahi’s tenure as chief minister Punjab, a point that might lead NAB to look into the political aspects of the BoP scam.

“The Bank of Punjab is proving to be Pakistan’s “Enron”, with every day new discoveries are being made,” a source said, adding that Hamesh Khan has revealed to investigators that besides Salman Siddique, the incumbent federal secretary finance and four other directors appointed by former chief minister Pervaiz Elahi took loans from the BoP, while they were sitting BoD members. 

One of these directors, Hamesh alleged, had purchased the Phalia Sugar 

Mills from the Chaudhrys of Gujrat. The incumbent BoP, President Naeem Khan, when approached confirmed that five directors of the BoP were recipient of huge BoP loans in violation of the policy of “good corporate governance”. Khan said that the conditions set in the good corporate governance principles were not followed while offering loans worth billions of rupees to the business concerns or relatives of the then directors. He said the BoP has issued notices for repayment of loan money to four of its ex-directors and is also taking legal action against them.

Khan said the criminal side of these controversial loaning is being looked into by the NAB, which has already obtained the relevant record from the BoP. Khan said the corporate governance of the BoP was at its worst during the last several years but he added during his tenure he has already got...
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