Greetings for the International Women’s Day!!!
It is being celebrated in many countries around the world. It is a day when women are recognized for their achievements without regard to divisions, whether national, ethnic, linguistic, cultural, economic or political. International Women’s Day first emerged from the activities of labour movements at the turn of the twentieth century in North America and across Europe. Since those early years, International Women’s Day has assumed a new global dimension for women in developed and developing countries alike.
In the spring of 2018, the country is dominated by PNB SCAM by Nirav Modi. PNB fraud was engineered by companies of diamond tycoon Nirav Modi, helped along by bank officials at its Brady House branch in Mumbai, the country’s financial capital.
Still, PNB’s Scam/ fraud is the second largest in India after government-owned UCO Bank was found to have advanced $3.2 billion in export advances to Iran against overseas sales that were never made. The PNB fraud showed the ease with which fraudsters could game the system.
"Nobody seems to be talking about what precisely needs to be done. This is important because the scam clearly shows that supervisory process at public sector banks failed to detect the fraud and, hence, it needs to be improved," said Abizer Diwanji, partner and national leader (financial services) at EY India. He further added "There is tendency among bankers to only monitor and supervise funded exposures. Processes related to transfers must also be made more transparent and banks must have a grip on technology controls".
As federal investigative agencies stepped in and skeletons started tumbling out of the cupboard, it emerged that Modi and his family was no longer in India.
There’s an old saying that goes: "Fool me once, shame on you; fool me twice, shame on me", it seems entirely possible to fool all the people all the time as said by Abraham Lincoln.
Consider Punjab National Bank (PNB), in the eye of the current storm. It has on its website the list of "wilful defaulters" to the bank as on 31 January 2018, the total amount being Rs14,593 crore. "Willful defaulters" is a euphemism for frauds. The point is that, even before the Nirav Modi scam, PNB had lost substantial amounts to bank fraud.
The less said about concurrent auditors the better. Yes, RBI has of late found discrepancies between what banks have reported as NPAs and their own assessment, but did they impose any penalties for hiding these bad loans?
In its Financial Stability Report of June 2017, it had pointed out that one of the emerging risks to the financial sector is a rising trend of frauds in commercial banks and financial institutions.
Frauds will always be with usas the irrepressible K.C. Chakrabarty, former RBI deputy governor, pointed out, even Kautilya had described forty ways of embezzlement in the Arthashastra. But surely, given their spotty track record, banks in India need to be extra cautious about risks. Not the PSU banks, the entire Public Systems in India is open to abuse in absence of effective control measures. The key is Political will in building control systems in government environment. It’s a policy issue; policy formulation needs intent / will and commitment, which seems to be missing. In general, government policies are weak or non-existent in the domain of CONTROL , be it evaluation, monitoring of development programmes or financial institutions, Neeti Ayog has a small department for evaluation and monitoring, which is resource starved. If Neeti Ayog looks at the national scene in a holistic frame work, it will realize that the CONTROL SYSTEMS of the Government let the country and its economy be a global failure, urgent actions are needed to build and strengthen control systems in every part of the e governance mechanism of the country.
This issue covers a story covers a story on Electronics Sector Skills Council of India (ESSCI), a leading Sector Skill Council, led by an industry veteran and a dynamic leader N. K. Mohapatra. The issue also covers the interview of Vikram Singh, Pro Chancellor NIU & Former DG of Police (UP) as the Interview of the Month. Interview of Subhendra Sekhar Mishra, AGM (CSR), NALCO is covered as the CSR Professional of the Month. We have also covered Guest Column of Dr. Srikant Sharma, MBBS, MD, MCKR Hospital on Responsibility of Health Care.
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