There is no doubt that relationship matters in career advancement. Especially, in a country like Pakistan, it become difficult for professionals to achieve high rank positions if they don’t have close references, relations or friendships with people at higher levels. It is called nepotism.
Nepotism and violation of merit has destroyed our institutions as incapable persons are being appointed on sensitive positions which also involve budgetary authority. National Bank of Pakistan (NBP) is one institution has been suffering due to the manse of nepotism and violation of merit. The State Bank of Pakistan recent inspection report mentioned a number of appointments at senior position in NBP in violation of rules and merit. A few examples are quoted here.
Mr.Khalid Bin Shaheen, SEVP, Global Home Remittance Management Group
The SBP report mentioned that the NBP hired services of Mr. Khalid Bin
Shaheen on the instructions of former federal minister for finance Mr. Abdul Hafeez Shaikh in 2009. It stated that the ministry of finance gave NBP an option, either to hire the services of Mr Khalid Bin Shaheen on contract or receive him in bank on deputation as Executive Vice President. Mr Khalid Shaheen was serving in the Habib Bank Limited (HBL) since 1976.
The matter (appointment of Mr Khalid Shaheen) was placed before the NBP Board of Directors in its meeting held on March 18, 2009. According to minutes of the meeting, the SBP report quoted, the then NBP President Mr Ali Raza informed the Board that Advisor to the prime minister on Finance and Economic Affairs has advised him to hire the services of Mr. Khalid Bin Shaheen. The Board authorized the NBP President to hire the services of Mr. Shaheen on deputation from HBL.
Nevertheless, the then NBP president in violation of Board’s recommendation hired Mr Khalid Bin Shaheen on contract for a period of three -years, instead of receiving his services on deputation from HBL. Mr Khalid Bin Shaheen joined NBP after taking premature retirement from HBL. Mr Khalid Bin Shaheen is brother of law of former minister Dr Hafeez Shaikh.
It is interesting to mention that, as per HBL’s salary slip, at the time of retirement from HBL in June 2009, Mr Shaheen’s gross salary was Rs319,712 per month, whereas the NBP hired his services with a gross monthly remuneration of Rs1 ,041,492.
Over completion of his three year contract, the NBP Board renewed Mr Shaheen’s employment on July 24, 2012 for a further period of three years. As per new employment contract , the NBP also gave him Life Insurance Policy covering death and disability of a permanent nature for the value of Rs10 million. No other permanent or contractual employee has been given the facility of life insurance and neither this facility was approved by the NBP Board nor does NBP HR rules has any such provisions.
The SBP inspection also pointed out that despite lapse of his two tenures, the NBP HR department did not get verified his educational certificates.
Muhammad Rafiq Bangali, SEVP, Overseas Banking Group
He is the current Chief of Overseas Banking Group at the NBP. According to SBP inspection report, Mr Bangali joined the bank in 1998 as Senior Vice President and General Manager of the NBP’s US operations. He was promoted as Senior Executive Vice President (SEVP) in 2002. The inspection report noted that during his long career with NBP, his contract has been renewed several times. The inspection team found no educational certificates in his personal file, except a photocopy of an MBA degree from the University of California, Berkeley. Moreover, the name mentioned on his degree is different from the name on his National Identity Card (CNIC) and passport which were also available in his personal file.
The NBP had requested the verification of his MBA degree from the University of California, Berkeley on January 1, 2012, but no response to this letter had been received till date. It is pertinent to mention that a letter dated October 27, 2009 was found in his personal file confirming authenticity of his degree which was addressed to the bank’s official who was currently performing this function and did not occupy the same position in 2009. Further, the letter did not contain features of verification such as University seal & security paper as stated on the website of the concerned university. The envelope of the verification letter had a local postage stamp affixed. These factors created serious doubts towards the authenticity of this letter.
The latest contract of Mr Bengali offered by the NBP in 2012 mentioned that the concerned executive would be based at Bahrain or the Middle East and his salary was fixed in US dollars. However, he remained posted in Pakistan and the bank paid his salary in USD for the whole year of 2012. The employment agreement also contained several clauses that all disputes would be dealt under US Laws. Further, tax on salary would also be paid by the bank according to US laws. Despite the inclusion of several complexities and unusual terms and conditions in the agreement, legal vetting of the same had not been obtained by the NBP.
He was not eligible for any performance bonus under the parameters defined in his contract but the NBP Board awarded him Rs2.5 million bonus in May, 2013 on account of his performance for the period during 2008-10.
Syed Muhammad Ali Zamin, EVP-Company Secretary
Contrary to the requirement of code of corporate governance, the employment contract of company secretary dated July 31, 2012 clearly mention that he will report directly to the President of NBP and obtain instructions regarding his duties and responsibilities from the President. Further, the SBP report pointed out that his contract says that he would perform all duties and responsibilities allocated to him by the NBP President to the satisfaction of his superior.
The bank neither yet verified his professional certificates issued by IBP and the Institute of Corporate Securities of Pakistan nor educational certificates such as MBA, BSC, Inter and Metric from the concerned board or universities. NBP allowed him leave encashment of 45 days to him on February 11, 2013 and for 92 days on June 29, 2012 despite the fact that his employment contracts specifically restricts encashment of annual paid leaves. __ EA Report
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