FIA launches investigation into National Bank of Pakistan’s losses on employee
loans
The Federal Investigation Agency (FIA) has launched an inquiry into the
National Bank of Pakistan’s (NBP) practices of granting loans to its employees
and the significant legal costs incurred in recovering those loans.
The FIA’s commercial banks circle has issued a notice to the NBP’s
compliance department, seeking clarification on the financial losses faced by
the bank. The agency has also requested information on the measures taken by
the management to address such cases and details about the collateral secured
when loans were issued to employees.
Read More National
Bank reports increase in tax contingencies to over Rs. 29 billion
Concerns Over Transparency
The investigation was prompted by complaints alleging that the NBP has
withheld information about the lawyers it hired for loan recovery, despite
requests submitted under the Right to Information Act.
Key questions raised by the FIA include:
- The
justification for professional fees paid to lawyers exceeding Rs300,000.
- Whether
the bank adhered to guidelines outlined by the law ministry for such
cases.
- Details
about board-approved permissions for hiring legal services.
Read More National
Bank of Pakistan (NBP) and NASTP sign agreement to forge cooperation
Pending Response from NBP
The NBP has yet to respond to the FIA’s queries or provide the requested
documentation.
The probe underscores concerns about accountability and transparency within
the NBP’s loan and recovery processes, particularly in instances involving its
own employees.
Source: Dawn