HBFC is nowadays in news on account of the Acts and frauds of its MD, Mr. Azhar Abbbas Jaffri, Recently Transparency International as well as Ummat drawn attention towards grave illegalities being committed in the organisation. Government has also restrained it from holding its meetings. Instead of posting those news I have given the links below
News of Business Recorder & Pakistan Today justifying that MD stands removed. Here newspaper has mistakenly quoted section 11(5) instead of 11(3)(c) of the Banks Nationalisation Act, 1974
This reply is absurd in totality and contains misstatements which further makes a case of removal of MD. My Comments are submitted as under:
RESPONSE OF HBFC
HBFC Response
It[HBFC] wishes to set the record straight for the information of the public…... "Regarding the appointment of the Managing Director, HBFCL has clarified that the appointment of the MD/CEO of HBFCL is governed by Article 72 of Association of HBFCL which states that 'There shall be a Chief Executive of the Company who shall be appointed by the Board with the prior approval of the Federal Government.
The Chief Executive shall be appointed from amongst persons having knowledge and experience in banking, preferably in the field of finance and economics in accordance with the Fit and Proper criteria as laid down by the State Bank of Pakistan from time to time.' "From the above it can be seen that the requirements spelt out in the relevant Article of Association do not list Pakistani citizenship as an eligibility criterion.
CommentAnd what about Banks Nationalisation Act, 1974. Why HBFC has observed silence about Banks Nationalisation Act which in sections 11(12)(c) & 11(3)(c) clearly says that MD shall only be citizen of Pakistan while Non-citizen shall stand removed. Whether the Act of Parliament is superior or the Articles of Association?According to Section 11A, which says “Notwithstanding anything contained in any other law for the time being in force, section 11 of Banks (nationalisation) Act shall apply to (i) NDFC (ii) ICP (iii) National Investment Unit Trust (iv) HBFC (v) SMFC (vi) RDFC (vii) First Women Bank Limited.” Hence Section 11A not only overrides Articles of Association but also the Companies Ordinance, 1984, as it starts with “Notwithstanding anything contained in any other law”Whether HBFC, as well as its legal heads and legal advisor drawing millions of rupees, isignorant about this law or they have maliciously concealed it.I have learnt that HBFC has said before Sindh High Court, that Managing director has been appointed under Banks (Nationalisation) Act, 1974, which supersede Articles of Association. They are making contradictory statement here. Further, its Articles of Association also says that Company shall be governed in accordance with concerned provisions of Banks Nationalisation Act. Whether MD and its team is also ignorant of Articles of its company. What a Performance? This is how corrupt people are expected to work.HBFC threatened Transparency International that it reserves right of legal proceedings. Now should Transparency International file legal action against MD HBFC for its malicious statements against TI and for giving misleading statements contradictory to its statements before the Honourable Sindh High Court.HBFC Response
Further, the 'Fit and Proper' criteria mentioned in the said Article and as laid down by the State Bank of Pakistan, requires that fitness & propriety of a candidate for the office of the Chief Executive Officer of a Bank or a Development Financial Institution, be assessed on the following broad elements: a) Integrity, Honesty & Reputation; b) Track Record; c) Solvency & Integrity; d) Qualification & Experience; e) Conflict of Interest.
Comment
While obtaining fit and proper certificate , fact of surrendering nationality was concealed. Fraudulently & by cheating, pretended to be Pakistani National to bypass the obstruction of section 11(12) of the Banks (Nationlisation) Act, 1974, MD extracted this position.This is the Honesty & Integrity of Mr. Azhar Jaffri. But as Civil Aviation is responsible for fall of plains which are not air worthy similarly State Bank of Pakistan is responsible for giving fit and proper certificate in violation of law and then not withdrawing it not taking action after knowing that such certificate was taken illegally and by fraud. Similarly, SECP was deceived by giving NIC numbers of surrender /invalid NIC but SECP is also not taking action. Nevertheless, responsibility of Secretary & Minster Finance Division does not reduce.HBFC RESPONSE
"Thus neither the Incorporation Documents of HBFCL nor the governing law and regulations impose any condition to the effect that the Chief Executive Officer of the Company must be a Pakistani national. COMMENTSAfter all MD has admitted that he is foreign national not citizen of Pakistan. Apart from Banks (Nationalisation) Act, which does not allow non-citizen to be MD, one thing more is to be considered. One who is foreign national by origin and one who is foreign national because he surrendered the nationality of Pakistan to get nationality of another country, are not equal. Mr. Azhar Jaffri is one who entered into agreement of loyalty with another country AFTER ENDING such AGREEMENT with state of Pakistan and how he can be made of head of institution of Pakistan which is made to provide shelter to middle class of Pakistan. How billions of rupees can be put to his disposal who is utilising this for its own benefit. Then he deceived the government , State Bank of Pakistan SECP, this nation and violated Banks Nationalisation Act, 1974.
HBFC Response
"Regarding the continuance of the MD in office after the expiration of his contract in January 2012, HBFCL has referred to Section 199 (3) of the Companies Ordinance which clearly states that 'The chief executive retiring under section 198 or this section shall continue to perform his functions until his successor is appointed unless non-appointment of his successor is due to any fault on his part or his office is expressly terminated.' "HBFCL has further clarified that since January 2012 letters have been written to the Ministry of Finance seeking its direction on the extension of the MD's tenure or the appointment of a new MD and till date the decision of the Ministry is awaited.CommentGovernment has already issued circular that those whose contract has been expired and are waiting for renewal of tenure should leave the position immediately and go home. What MD Is waiting for?
HBFC Response
"HBFCL also condemns the allegation by Transparency International that the appointment of HBFCL Group Head, Legal, Strategy & Marketing and of legal advisor Awan Raza were not proper.
"It has clarified that in the case of the Group Head, the position was not only advertised but PPRA was strictly followed.
Further the Group Head recruited was previously serving in the Competition Commission of Pakistan and was not a partner in M/S Awan & Raza as Transparency International Pakistan has wrongly stated.
Comment
Really, but HBFCL website introduces her as “
Aatiqa Lateef Aatiqa Lateef joined House Building Finance Company Limited in 2010 and is Group Head, Legal, Strategy & Marketing. Aatiqa Lateef….. Her experience in Pakistan includes the Competition Commission of Pakistan and Partnership at the law firm of Awan Raza.http://www.hbfcl.com/aatiqa_lateef.html
What a fraud andliar is HBFC.Readers rush and see it unless HBFC may change its website.
HBFC Response
In the case of Awan Raza, it is to be noted that they are just one of several law firms which are on the legal advisors panel of HBFCL, which includes amongst others, Hafiz Rehman, Mohsin Tayebaly, Haidermota, Faisal Ghani, Nafis Siddiqui and other relevant legal specialists and firms as needed.
Comment
Good attempt to fraud with law and throw away the provisions of law. So now onwards every concerned institution shall keep most of the lawyers, consultants, suppliers, service providers, contractors on its panel. Then they may award contract to whomever they like without fulfilling provisions of Public Procurement Laws. A simple way to deceive the nation and its law, what else can be expected from one who has surrendered nationality of Pakistan. But what to say of regulators, Government & FIA why they are keeping this fraudulent mentality in chair. What are they getting in return?
HBFC Response
"Regarding Transparency International Pakistan's false allegations that the HBFCL MD granted himself millions of rupees as bonus (a grossly exaggerated amount), HBFCL has stated that Transparency International Pakistan has not only stated something that is factually incorrect but has also demonstrated its non-transparency and lack of knowledge about the rules governing such matters.
The HBFCL MD is not authorised to grant himself bonuses and all bonuses have to be approved by the board of directors, which includes a nominee director of the Ministry of Finance. The bonus given is thus based on performance and duly approved by concerned authorities.
Comment
Yes, this is what everyone is seeing, that Board, MD and Ministry of Finance, probably State Bank of Pakistan also, all are acting in concert to keep fraudulent MD in position, to give him bonuses, a legitimate way to take out the money of the people of Pakistan and share it afterwards. By the way, how much bonus does MD has taken? Why HBFC has avoided to discolsed that "Correct amount of bonus, if Ummat is wrong"?
HBFC Response
"The malicious statements issued to the media by unscrupulous vested interests, have also tried to paint a wrong picture of HBFCL's efficiency by stating that loan disbursements have greatly reduced during the tenure of the present managing director.
CommentThe news Articles gives comparative figures for last three years to establish that disbursements have fallen down. It says, “It was further alleged that before the appointment of Mr. Jaffery in the HBFC, the disbursements were Rs.3.85 billion rupees while when he was made MD in 2009, the lending fell to 715 million and then 679 million in 2010.” If HBFC says it is incorrect it should give its own figures matching its annual report. Why HBFC has not given any figures? Because the figures given are true.
HBFC Response
…….."Further, the success of the management in turning around the organisation is clearly evident from the fact that in financial year 2007 and 2008 HBFCL reported a loss of Rs 959 million and Rs 414 million respectively, whereas in 2009 and under the new management, the loss was reduced to Rs 109 million, followed by a profit of Rs 113 million in financial year 2010 for the first time in several years.
Now for financial year 2011 a profit of over Rs 100 million is expected to be declared," the clarification concludes.-PR
Comment
A layman also knows that financial institution earns profit from lending and only from lending. So all this profit relates to lending which was made prior to current MD and is for 10/20 years. Performance of current MD relates to turnover of the Company which has declined without dispute. HBFC also failed to give any figures for disbursement.
In the presence of above what is being awaited by SBP, SECP, Ministry, FIA? Whether we want everything to be done by Supreme Court of Pakistan only?
Should Supreme Court take notice it should penalize not only Jaffri but all those who are responsible for making and keeping foreign national at the position illegally.
May ALLAH ALMIGHTY establish rule of law in our country and blessour nation and the humanity. MAY ALLAH give us power that we may not support lawlessness for our personal benefit.
