Federal audit authorities have unearthed a scam in the Zarai Taraqiati Bank Limited (ZTBL), in which bank officials disbursed millions of rupees on fake security documents and inflicted massive losses to the national exchequer. The audit report for 2010-11 revealed that sacked employees of the ZTBL involved in the disbursement of Rs 58.406 million on fake security documents were later reinstated.
“The ZTBL Sialkot disbursed loans of Rs 58.406 million to 244 borrowers for various agriculture purposes between 1992 and 2001. These loan cases were sanctioned on fake security documents. Later on, the persons involved in these cases were charge sheeted and were dismissed from service after the charges were proved against them,” the report said. The report says the officials dismissed from service had been reinstated later vide office memorandum dated February 2, 2009.
“As the MCO/Officers had been reinstated, therefore recovery of outstanding amount may either be recovered from the defaulters or from the officers responsible for disbursement of loans on fake documents. Out of total amount of Rs 58.406 million, an amount of Rs 30.737 million has been recovered, leaving a balance of Rs 27.669 million as on February 28, 2009,” the report adds. The report further points out that in another case, the ZTBL suffered a loss of Rs 3.802 million through dishonoured cheques. In another case, the bank suffered a loss of Rs 24.714 million due to theft of loans cases files.
“The ZTBL Choti Zaireen branch disbursed loans amounting to Rs 17.739 million to 57 borrowers during the years from 1996 to 2001. The management could not recover the dues from these borrowers except a sum of Rs 0.590 million. As a result, the outstanding balance rose to Rs 24.714 million (Rs 17.739 million principal + Rs 6.975 million mark up) as on December 31, 2006. The files of these borrowers were misplaced for which management lodged an FIR on June 27, 2006 regarding the theft of 57 loan safe files,” the report said.
Audit authorities pointed out that in ZTBL Sheikhupura branch, fifteen loans cases were stuck up for more than 10 years, but no tangible effort was made for recovery, leaving an outstanding amount of Rs 2.313 million.
