Zarai Taraqiati Bank Limited''''s official business is virtually paralysed due to the absence of a Board of Directors (BoD) after Islamabad High Court issued stay order against its members, well-informed sources told Business Recorder. The new Board is to be reconstituted by the Finance Ministry; but the State Bank of Pakistan (SBP) recently turned down ZTBL''''s request to extend the deadline for submission of financial accounts due to non-existence of BoD.
"The bank''''s request cannot be acceded to and ZTBL is advised to convene a BoD meeting for approving third quarter financial statements for publication and submission to SBP in terms of BSD circular number 1 of January 7, 2004... (as) according to section 177 of the Companies Ordinance 1984, the retiring directors may continue to perform their functions until their successors are elected," the SBP ruled in a letter dated 5 November 2013.
The ZTBL management has neither complied with the SBP directive nor has it advised its directors or its regulator the reasons for non-compliance. However, officials in the finance ministry appear to be well aware of this controversy and the ensuing disarray in ZTBL''''s affairs.
On June 14, 2010, the then Prime Minister, Syed Yousuf Raza Gilani, had reconstituted the ZTBL Board for an indefinite period. The Board reconstituted by Gilani was as follows: (i) Chaudhry Zaka Ashraf, President/CEO; (ii) Iftikhar Khan Mohmand; (iii) Dr Amar Muhammed; (iv) Sultan Ali Chaudhry; (v) Zafar Iqbal; (vi) Abdul Wajid Arain; (vii) Yaqoob Verdag; (viii) Dr Khalid Ahmad Khokhar; (ix) Muhammad Nawaz Shah; (x) Additional Secretary Finance(Internal Finance); and (xi) Additional Secretary M/s Food and Agriculture.
ZTBL''''s Board was reconstituted by the then Finance Minister Salim Mandviwala in the dying days of the PPP government. It was notified on March 16, 2013 and comprised of: (i) Salman Younis (Chairman); (ii) Ihsan-ul- Haq President; (iii) Zaka Ashraf (former President); (iv )Abdul Wajid Arain; (v) Taimur Jamote; (vi) Ijaz Nabi Shah; (vii) Dr Khalid Ahmad Khokhar; (viii) Yaqoob Verdag; (ix) Muhammad Nawaz Shah; (x) Iftikhar Mohmand; and (xi) Additional Secretary (Internal Finance) Ministry of Finance.
The three new directors, ie Salman Younis, Taimor Jamote and Ijaz Nabi Shah replaced Dr Amir Muhammad, Sultan Ali Chaudhry and Zafar Iqal-all three belong to the Gujjar tribe along with Zaka Ashraf.
Analysts maintain that the notification dated March 16, 2013 which adds three new members is limited for three years and appointment of Salman Younis as chairman is against the rules as the Chairman can only be appointed by the ZTBL Board and not the Finance Ministry.
Meanwhile, Muhamamd Munir Mani, Secretary General All Pakistan Peoples Unit of ZTBL) and Muhammad Yaqun Rai, General Secretary, All Pakistan Officers Association, ZTBL, filed a petition in Islamabad High Court(IHC) against appointment of the three new Directors. The apex court on March 26, 2013 issued a stay order against the newly notified three Board members.
On November 22, 2013, four members of the Board, ie Dr Amar Muhammed, Yaqoob Verdag, Zafar Iqbal and Zaka Ashraf held a meeting at a local hotel in Islamabad. The location was violative of the IHC direction to hold the Board''''s meeting on the premises of ZTBL, said a source on condition of anonymity.
Three directors Muhammad Nawaz Shah, Dr Khalid Khokhar and Wajid Arain did not attend the meeting; and neither did ZTBL President, Secretary, Additional Secretary (IF) MoF and Additional Secretary Ministry of National Food Security and Research attend the meeting.
However, in the said Board meeting it was observed that due to a lack of assistance in holding the Board meeting by the President of the Bank and Company Secretary of the Board, various important functions of the Bank have suffered. One such event is non approval of the financial accounts for the period ended June, 30, 2013 and September 30, 2013 despite SBP confirmation that under section 177 of the Companies Ordinance 1984 the present Board should be convened for this purpose; in addition a very important document relating to Risk Assessment of the Bank (IRAF) which is mandatory to be sent to SBP by August 14 of every year has also not been complied with.
Similarly SECP requirements have been violated. It was further noted that the manpower budget for 2013 has not been approved by the Board.
When contacted a senior official of Finance Ministry told Business Recorder that ZTBL''''s Board does not exist and expressed ignorance of any meeting held in a local hotel.
"We have obtained permission from the Prime Minister to reconstitute ZTBL Board and this position has been intimated to the SBP accordingly," he added.
"The bank''''s request cannot be acceded to and ZTBL is advised to convene a BoD meeting for approving third quarter financial statements for publication and submission to SBP in terms of BSD circular number 1 of January 7, 2004... (as) according to section 177 of the Companies Ordinance 1984, the retiring directors may continue to perform their functions until their successors are elected," the SBP ruled in a letter dated 5 November 2013.
The ZTBL management has neither complied with the SBP directive nor has it advised its directors or its regulator the reasons for non-compliance. However, officials in the finance ministry appear to be well aware of this controversy and the ensuing disarray in ZTBL''''s affairs.
On June 14, 2010, the then Prime Minister, Syed Yousuf Raza Gilani, had reconstituted the ZTBL Board for an indefinite period. The Board reconstituted by Gilani was as follows: (i) Chaudhry Zaka Ashraf, President/CEO; (ii) Iftikhar Khan Mohmand; (iii) Dr Amar Muhammed; (iv) Sultan Ali Chaudhry; (v) Zafar Iqbal; (vi) Abdul Wajid Arain; (vii) Yaqoob Verdag; (viii) Dr Khalid Ahmad Khokhar; (ix) Muhammad Nawaz Shah; (x) Additional Secretary Finance(Internal Finance); and (xi) Additional Secretary M/s Food and Agriculture.
ZTBL''''s Board was reconstituted by the then Finance Minister Salim Mandviwala in the dying days of the PPP government. It was notified on March 16, 2013 and comprised of: (i) Salman Younis (Chairman); (ii) Ihsan-ul- Haq President; (iii) Zaka Ashraf (former President); (iv )Abdul Wajid Arain; (v) Taimur Jamote; (vi) Ijaz Nabi Shah; (vii) Dr Khalid Ahmad Khokhar; (viii) Yaqoob Verdag; (ix) Muhammad Nawaz Shah; (x) Iftikhar Mohmand; and (xi) Additional Secretary (Internal Finance) Ministry of Finance.
The three new directors, ie Salman Younis, Taimor Jamote and Ijaz Nabi Shah replaced Dr Amir Muhammad, Sultan Ali Chaudhry and Zafar Iqal-all three belong to the Gujjar tribe along with Zaka Ashraf.
Analysts maintain that the notification dated March 16, 2013 which adds three new members is limited for three years and appointment of Salman Younis as chairman is against the rules as the Chairman can only be appointed by the ZTBL Board and not the Finance Ministry.
Meanwhile, Muhamamd Munir Mani, Secretary General All Pakistan Peoples Unit of ZTBL) and Muhammad Yaqun Rai, General Secretary, All Pakistan Officers Association, ZTBL, filed a petition in Islamabad High Court(IHC) against appointment of the three new Directors. The apex court on March 26, 2013 issued a stay order against the newly notified three Board members.
On November 22, 2013, four members of the Board, ie Dr Amar Muhammed, Yaqoob Verdag, Zafar Iqbal and Zaka Ashraf held a meeting at a local hotel in Islamabad. The location was violative of the IHC direction to hold the Board''''s meeting on the premises of ZTBL, said a source on condition of anonymity.
Three directors Muhammad Nawaz Shah, Dr Khalid Khokhar and Wajid Arain did not attend the meeting; and neither did ZTBL President, Secretary, Additional Secretary (IF) MoF and Additional Secretary Ministry of National Food Security and Research attend the meeting.
However, in the said Board meeting it was observed that due to a lack of assistance in holding the Board meeting by the President of the Bank and Company Secretary of the Board, various important functions of the Bank have suffered. One such event is non approval of the financial accounts for the period ended June, 30, 2013 and September 30, 2013 despite SBP confirmation that under section 177 of the Companies Ordinance 1984 the present Board should be convened for this purpose; in addition a very important document relating to Risk Assessment of the Bank (IRAF) which is mandatory to be sent to SBP by August 14 of every year has also not been complied with.
Similarly SECP requirements have been violated. It was further noted that the manpower budget for 2013 has not been approved by the Board.
When contacted a senior official of Finance Ministry told Business Recorder that ZTBL''''s Board does not exist and expressed ignorance of any meeting held in a local hotel.
"We have obtained permission from the Prime Minister to reconstitute ZTBL Board and this position has been intimated to the SBP accordingly," he added.
News Source: Business Recorder News collected: agrinfobank.com Team
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