ISLAMABAD/KARACHI – The Supreme Court on Friday declared the appointment of National Bank of Pakistan (NBP) President Ali Raza unconstitutional and directed him to quit the office with immediate effect, which he had been occupying for a decade.
The bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday announced its short verdict it had reserved on January 4 over the petition of Muhammad Idrees and others and employees of NBP, against Raza’s appointment. Declaring the notification of his reappointment after 2007 illegal, the court it set aside the renewal of his contracts.
The incumbent government had extended Raza’s tenure for one year on April 10, 2010, under which he had to hold his office until June 20, 2011. The petitioner said under the rules, Raza’s term could only be extended for two times, but former president Pervez Musharraf had extended his term three times by an ordinance and later his term was extended for the fourth time by the incumbent government, which was an unconstitutional act. The petitioner said the ordinance was made part of the law under the Finance Act, which was not approved by parliament, hence the extension was a violation of the Nationalisation of Banking Act 1974. According to petitioner, Raza had illegally gotten a loan of over Rs 26 billion written off, and that he was involved in plunder to the tune of Rs 200 billion.
Meanwhile, a senior NBP official told Pakistan Today in Karachi that Ali Raza has resigned on Friday in compliance of the SC decision. He said that Ali Raza did not attend office on Friday after hearing about the court’s decision. Talking to Pakistan Today, legal experts said Ali Raza is a victim of ‘technicality’ as the ordinance was made part of law under the finance act, which was not approved by parliament. They said that Raza could secure his job by reappointment only if the government brings a law and gets it passed separately by both houses of parliament to make it into an Act.
