LAHORE: State Bank of Pakistan has voiced reservations over the appointment of Naeemuddin Khan, President Bank of Punjab.
Although, it is highly likely that Naeemuddin Khan’s tenure as President BOP will be extended for one year, reported Dawn.
In November, the central bank had been requested by finance department to carry out a Fit and Proper Test (FPT) of five candidates under section 11 (1) of BOP Act-1989, after a selection committee shortlisted them after interviewing 120 aspirants for the job.
In a letter sent by finance ministry to the SBP on November 13th said the Chief Minister Punjab had formed a committee for the appointment of new president of BOP. The short-listed candidates included Akbar Hassan Khan, Kausar Iqbal Malik, Syed Ahmad Iqbal Ashraf, Naeemuddin Khan and Tahir Yaqoob Bhatti.
The letter written by Bilal Hasham, Deputy Secretary, Resource-II, Finance Department said before list of candidates is forwarded to provincial cabinet, the central bank would be asked to carry out FPT of above mentioned candidates.
In response to finance ministry’s letter, the central bank said as a regulatory body, the SBP doesn’t indulge itself in selection/hiring process of any president/CEO of a bank/DFI at any juncture.
It added; as per appropriate laws it is the duty of relevant body to appoint a candidate for the position of President BOP, as per a letter written by SBP and sent to finance department on December 12th.
SBP raised concerns over candidature of Naeemuddin Khan and said he was over 65 years of age and would turn 70 if he is appointed for the full-term of five years. The central bank said questions had been raised over his performance and professional conduct during his current tenure as President and no action has been taken in this regard, read the letter.
The regulator shared concerns over the candidature of Syed Ahmed Iqbal Ashraf and stated the next president should be between 40 to 70 years of age. Mr. Ashraf would be 70 by 2020, considering the term of appointment as BOP president is of five years.
SBP remarked that question marks were also raised over the professional conduct and performance of Mr. Ashraf as NBP president during his tenure between 2014-17 and the apex court remarks passed in a judgement dated September 29th could be examined for further deliberation.
The SBP said Tahir Yaqoob Bhatti had the required experience and education for the post of president, BOP.
Regarding Akbar Hassan Khan, the regulator voiced concern that as director of Galadari Cement Gulf Ltd, the company owes significant overdue amount according to CIB reports.
According to clause (iii) of section 3 of SBP’s section criteria, the suggested candidate shouldn’t be a defaulter to any financial institution or default in payment of any taxes in individual capacity or as proprietary concern or any partnership firm or in any private unlisted/listed company.
The SBP expressed reservations over the proposed candidature of Kausar Iqbal Malik, as it said the FPT criterion needs the president to be a career banker, possessing five years of experience at senior level as EVP or having headed a financial department in a bank.
According to the central bank, Mr. Malik lacked the required experience for the position and question marks were raised over his professional conduct during his posting as group head (HRM and AG) in NBP.
