NBP A largest financial institute of Pakistan on hype of Scams, frauds & irregularities

NAB, FIA, SBP & SECP are helpless as Govt. is not interested to take any serious action against big guns.

Although, in Pakistan, there are a lot of Scam’s, frauds & irregularities stories from state owned entities but in recent few years, the most prestigious financial institute National bank of Pakistan is no.1 in this race of loot sale. From lower staff to top officials have been found guilty but none of strict action is being taken against them except few smaller. NPB lacks technology, management, poor control which resulted loss of Billions of rupees of national exchequer.

Recent few years data shows that NBP faced loss of billions of rupees by its high rank handlers.

2013, Senior officials of National Bank of Pakistan (NBP) have been found allegedly involved in a mega corruption scam of approximately Rs 18.5 billion as they have been doling out loans to defaulters of other banks from NBP’s branches in Bangladesh. Bank suffers Rs18.5 billion loss through issuing of loans to known defaulters. The management at National Bank of Pakistan (NBP) concealed the reports received from Bangladesh regarding the Rs18.5 billion scam, according to the National Accountability Bureau (NAB). Sources said the former and incumbent top guns of the NBP some of them are now heading three commercial banks and one is serving in a top position in the central bank. The scam was first reported in January 2014, at that time, the misappropriation was estimated at around Rs11 billion, which later swelled to Rs18.5 billion. In its forensic audit, KPMG found that “61 delinquent employees” were prima facie involved in the scam including former President Syed Ali Raza.. Now, the NAB has narrowed down the list to under a dozen but sources said few top-level names will be added at a later stage. “The NBP management charge-sheeted 57 employees and disciplinary proceedings have commenced in accordance with the bank’s Employee Discipline Policy, approved by the board of directors,” states the report. The proceedings against the remaining four persons that include the bank’s former president have not been started yet. Some of the ex-employees are presidents of other commercial banks and action against them can only be taken by the federal government. However, The federal government has allowed the National Bank of Pakistan (NBP) to remit $65 million for equity injection in its Bangladesh branch, with an aim of fulfilling minimum capital requirements after the bank’s equity eroded due to losses amounting to Rs18.5 billion.

In what might well be one of the biggest financial scandals of the country, 600,000 ghost civilian and military pensioners who have been receiving up to Rs43 billion annually from National Bank of Pakistan (NBP)  – roughly one-fifth of the country’s pension budget. The NBP executive said that more ghost pensioners could be identified through biometric verification.

The National Bank of Pakistan (NBP) collected Rs411 million in form fees from passport applicants between 2007 and 2013 without the  approval of the finance ministry and the central bank, according to the Auditor General of Pakistan’s report for 2013-14. This issue was earlier raised in a meeting of the Public Accounts Committee (PAC) in November, 2012. The committee also directed the directorate of immigration and passports and the interior ministry to conduct an independent inquiry on the matter in coordination with the finance ministry and submit a report in 20 days. But no one complied with the orders. The AGP’s report observes that neither the ministry nor the department had taken action on the PAC’s directives. “Rather the irregularity still continues.”

National Bank of Pakistan allegedly involved in the Rs420 Million pension scam in Muzafarghar. NBP suspended only two lower staffers and no action has been taken against high officials. The National Accountability Bureau has directed the Federal Investigation Agency to hand it over two suspended officials of the National Bank. Sources said about 10,000 pensioners used to draw money totaling Rs100m from NBP Muzaffargarh main branch every month. But transactions by the NBP showed Rs188m per month withdrawal.

National Bank of Pakistan (NBP) allegedly caused loss of Rs2 billion to the national exchequer in the NBP Karobar Scheme. The scheme launched during the Musharraf regime in 2006 related to disbursement of loans for various projects like CNG rickshaws. “This is just the beginning and inquires will be held on the complaints against the top officials of the National Bank of Pakistan in the “Karobar scheme,” NAB spokesman Zafar Iqbal told.

National Bank of Pakistan is holding some other inquiries too against top officials of NBP in cases in which loss of billions was caused to national exchequer. These inquiries includes mega scandals involving former President National Bank of Pakistan, Syed Ali Raza, and others for misuse of around Rs2 billion in the name of Achievement Awards from Staff Welfare Fund.

Another inquiry is against irregularities allegedly committed by ex-President Ali Raza and other executives including Dr Mirza Abrar Baig in the name of streamlining the Bank operations in a multi-billion dollar scam of Core Banking Solutions.

In 2015, MCC Appraisement East has booked several persons including officials of National Bank of Pakistan (NBP) in the case of fraudulent release of security instruments, which were deposited to the Collectorate in provisional assessment cases by the importers causing huge loss to the exchequer. The information retrieved from banks has revealed that these Pay Orders of Rs.11.28 million were deposited and cleared through National Bank of Pakistan, Nadir House Branch, Karachi.

NBP is also facing allegations regarding Omni group loans. Ansari sugar mills was a defaulter of Rs.9.5 million and according to reports NBP high officials given 1.5 billion further loan to this mill violating the rules & regulation.

This national institute is suffered from irregularities in procurements, loans writes off and abuse of powers. Account holder, Tax payers, business community and other Pakistanis are losing their trust on his National institute. There are a lot of other cases and examples of frauds in NBP which will be publish in the “The Banker Pakistan” very soon in coming days and general public will be kept well informed regarding this loot in National Bank of Pakistan.

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