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Institutional mismanagement in Pakistan: Who will expose the culprits?
Global Village Space |
Ikram Sehgal |
Accountability must target (but mostly doesn’t) politicians, public officials, and govt departments, the lower judiciary, etc, in Pakistan. The PM appearing before the JIT because of PanamaGate is symbolic of the Supreme Court’s (SC)’s determination to bring the rule of law into governance. Criminal misgovernance has been highlighted by the JIT complaints to the SC about govt institutions changing/falsifying records, using delaying tactics and not cooperating with their inquiry. While one is vehemently opposed to the PM being removed by extra-constitutional means, he could “recuse” himself while the JIT inquiry is in progress. The smear campaign against the JIT, and by extension the SC, gives fuel to those who want a Caretaker Govt to ensure state institutions do not indulge in malfeasance to protect the Sharifs’ personal interests.
Despite PICG’s efforts corruption/mismanagement in financial institutions in Pakistan has not lessened or been given due cognizance.
A truly remarkable institution, the Pakistan Institute of Governance (PICG) educates existing and would-be members of Boards of Directors (BODs) to establish corporate management related policies and to make decisions on major company issues. Their responsibilities include maintaining financial accountability of their organization, exercising due diligence ensuring that the organization is not only well-managed but remains in a financially sound situation. Board members have always to stay objective, responsible, honest, trustworthy and efficient.
Read more: Pakistan suffers: The corrupts are made heroes
Despite PICG’s efforts corruption/mismanagement in financial institutions in Pakistan has not lessened or been given due cognizance. Numerous revelations include participation in foreign bribery, accelerating levels of tax avoidance and evasion, fraudulent misrepresentation of financial products, tailoring of accounts etc despite evidence of clear abuses of corporate power. Neither the federal or provincial governments nor the statutory bodies responsible have moved to take effective action to bring white collar criminals to justice.
As CEO of Enron, Jeffrey Skilling developed a staff of executives that – by the use of accounting loopholes, special purpose entities and poor financial reporting – were able to hide billions of dollars in debt from failed deals and projects.
Board members breaching duties which harm the organization he “directs” must be personally liable for failing to comply. Because of the disparate issues, Boards require specialized Committees to be headed by a Board Member constituted with one or two other members, the CEO and concerned executives of the institutions. Meeting periodically they shortlist recommendations for approval by the Board. The amount of workload and time constraints makes it possible to slip matters through the Committees by deliberately leaving important matters to be rushed through at the very end. The Board Members must (through the supervision of Committee) prevent the management from indulging in excessive spending by closely looking at cost-to- income ratios. One can accept maybe 5-10% over the industry average but 25%? A CEO of a financial institution contrived to manipulate the selection of his two well qualified (but trusted friends) as independent directors. For allowing their friend free rein to run riot looting the bank, the aforementioned two “friendly” directors should be sent to jail as accessories to white collar crime. Has anyone questioned the BODs of Pakistan International Airlines, Pakistan Steel Mills for being responsible for the mess?
As CEO of Enron, Jeffrey Skilling developed a staff of executives that – by the use of accounting loopholes, special purpose entities and poor financial reporting – were able to hide billions of dollars in debt from failed deals and projects. Enron executives misled Enron’s BOD and audit in overstating Enron’s earnings by several hundred million dollars. Most of the top executives were tried and convicted for fraud. Covering up Enron’s “creative accounting” resulted in renowned international audit giant Arthur Andersen ceasing to exist. Has anyone ever take such punitive action against any audit firm or their personnel in Pakistan?
Read full article:
Institutional mismanagement in Pakistan: Who will expose the culprits?
Global Village Space |
Ikram Sehgal |
Accountability must target (but mostly doesn’t) politicians, public officials, and govt departments, the lower judiciary, etc, in Pakistan. The PM appearing before the JIT because of PanamaGate is symbolic of the Supreme Court’s (SC)’s determination to bring the rule of law into governance. Criminal misgovernance has been highlighted by the JIT complaints to the SC about govt institutions changing/falsifying records, using delaying tactics and not cooperating with their inquiry. While one is vehemently opposed to the PM being removed by extra-constitutional means, he could “recuse” himself while the JIT inquiry is in progress. The smear campaign against the JIT, and by extension the SC, gives fuel to those who want a Caretaker Govt to ensure state institutions do not indulge in malfeasance to protect the Sharifs’ personal interests.
Despite PICG’s efforts corruption/mismanagement in financial institutions in Pakistan has not lessened or been given due cognizance.
A truly remarkable institution, the Pakistan Institute of Governance (PICG) educates existing and would-be members of Boards of Directors (BODs) to establish corporate management related policies and to make decisions on major company issues. Their responsibilities include maintaining financial accountability of their organization, exercising due diligence ensuring that the organization is not only well-managed but remains in a financially sound situation. Board members have always to stay objective, responsible, honest, trustworthy and efficient.
Read more: Pakistan suffers: The corrupts are made heroes
Despite PICG’s efforts corruption/mismanagement in financial institutions in Pakistan has not lessened or been given due cognizance. Numerous revelations include participation in foreign bribery, accelerating levels of tax avoidance and evasion, fraudulent misrepresentation of financial products, tailoring of accounts etc despite evidence of clear abuses of corporate power. Neither the federal or provincial governments nor the statutory bodies responsible have moved to take effective action to bring white collar criminals to justice.
As CEO of Enron, Jeffrey Skilling developed a staff of executives that – by the use of accounting loopholes, special purpose entities and poor financial reporting – were able to hide billions of dollars in debt from failed deals and projects.
Board members breaching duties which harm the organization he “directs” must be personally liable for failing to comply. Because of the disparate issues, Boards require specialized Committees to be headed by a Board Member constituted with one or two other members, the CEO and concerned executives of the institutions. Meeting periodically they shortlist recommendations for approval by the Board. The amount of workload and time constraints makes it possible to slip matters through the Committees by deliberately leaving important matters to be rushed through at the very end. The Board Members must (through the supervision of Committee) prevent the management from indulging in excessive spending by closely looking at cost-to- income ratios. One can accept maybe 5-10% over the industry average but 25%? A CEO of a financial institution contrived to manipulate the selection of his two well qualified (but trusted friends) as independent directors. For allowing their friend free rein to run riot looting the bank, the aforementioned two “friendly” directors should be sent to jail as accessories to white collar crime. Has anyone questioned the BODs of Pakistan International Airlines, Pakistan Steel Mills for being responsible for the mess?
As CEO of Enron, Jeffrey Skilling developed a staff of executives that – by the use of accounting loopholes, special purpose entities and poor financial reporting – were able to hide billions of dollars in debt from failed deals and projects. Enron executives misled Enron’s BOD and audit in overstating Enron’s earnings by several hundred million dollars. Most of the top executives were tried and convicted for fraud. Covering up Enron’s “creative accounting” resulted in renowned international audit giant Arthur Andersen ceasing to exist. Has anyone ever take such punitive action against any audit firm or their personnel in Pakistan?
Read full article:
Institutional mismanagement in Pakistan: Who will expose the culprits?
