HBFCL condemns defamatory campaign by vested interests

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The House Building Finance Company Limited (HBFCL) strongly condemns the concerted campaign being carried out by unscrupulous vested interests, to defame the country’s leading housing finance institution and its management through the media. Recent news reports appearing in various newspapers and an online portal bear highly defamatory and malicious allegations that distort facts and aim at spreading mistrust and confusion.
It is surprising that an organization like Transparency International Pakistan (TIP) which projects itself as the protector of public interest, has apparently also being misguided by this nefarious campaign by releasing statements to the media, without even exercising basic transparency itself by first seeking HBFCL’s viewpoint on these issues.
While HBFCL reserves the right to take legal action against those who are publicly maligning its good reputation, it wishes to set the record straight for the information of the public by stating the facts as these are. Regarding the appointment of the Managing Director, HBFCL has clarified that the appointment of the MD/CEO of HBFCL is governed by Article 72 of Association of HBFCL which states that “There shall be a Chief Executive of the Company who shall be appointed by the Board with the prior approval of the Federal Government. The Chief Executive shall be appointed from amongst persons having knowledge and experience in banking, preferably in the field of finance and economics in accordance with the Fit and Proper criteria as laid down by the State Bank of Pakistan from time to time.” From the above it can be seen that the requirements spelt out in the relevant Article of Association do not list Pakistani citizenship as an eligibility criterion. Further, the ‘Fit and Proper’ criteria mentioned in the said Article and as laid down by the State Bank of Pakistan, requires that fitness & propriety of a candidate for the office of the Chief Executive Officer of a Bank or a Development Financial Institution, be assessed on the following broad elements: a) Integrity, Honesty & Reputation; b) Track Record; c) Solvency & Integrity; d) Qualification & Experience; e) Conflict of Interest.
Thus neither the Incorporation Documents of HBFCL nor the governing law and regulations impose any condition to the effect that the Chief Executive Officer of the Company must be a Pakistani national.
Regarding the continuance of the MD in office after the expiration of his contract in January 2012, HBFCL has referred to Section 199 (3) of the Companies Ordinance which clearly states that “The chief executive retiring under section 198 or this section shall continue to perform his functions until his successor is appointed unless non-appointment of his successor is due to any fault on his part or his office is expressly terminated.”
HBFCL has further clarified that since January 2012 letters have been written to the Ministry of Finance seeking its direction on the extension of the MD’s tenure or the appointment of a new MD and till date the decision of the Ministry is awaited.
HBFCL also condemns the allegation by Transparency International that the appointment of HBFCL Group Head, Legal, Strategy & Marketing and of legal advisor Awan Raza were not proper.
It has clarified that in the case of the Group Head, the position was not only advertized but PPRA was strictly followed. Further the Group Head recruited was previously serving in the Competition Commission of Pakistan and was not a partner in M/S Awan & Raza as TIP has wrongly stated. In the case of Awan Raza, it is to be noted that they are just one of several law firms which are on the legal advisors panel of HBFCL, which includes amongst others, Hafiz Rehman, Mohsin Tayebaly, Haidermota, Faisal Ghani, Nafis Siddiqui and other relevant legal specialists and firms as needed.
Regarding TIP’s false allegations that the HBFCL MD granted himself millions of rupees as bonus (a grossly exaggerated amount), HBFCL has stated that TIP has not only stated something that is factually incorrect but has also demonstrated its non-transparency and lack of knowledge about the rules governing such matters. The HBFCL MD is not authorized to grant himself bonuses and all bonuses have to be approved by the board of directors, which includes a nominee director of the Ministry of Finance. The bonus given is thus based on performance and duly approved by concerned authorities.
The malicious statements issued to the media by unscrupulous vested interests, have also tried to paint a wrong picture of HBFCL’s efficiency by stating that loan disbursements have greatly reduced during the tenure of the present managing director. It is a matter of record that prior to the present management of HBFCL taking control of affairs, the organization was widely regarded as a corrupt, inefficient, loss-making and over-staffed institution that had been chalking up substantial losses every year and had become a white elephant for the government. The present management under the leadership of the current Managing Director and backed by the present government, has introduced strong financial discipline that has done away with the past practice of disbursing loans on questionable and uncreditworthy grounds, knowing that these will not be paid. The clear proof of this is the significant reduction in Non-performing Loans granted between 2009 and 2011 compared to previous years.
Further, the success of the management in turning around the organization is clearly evident from the fact that in financial year 2007 and 2008 HBFCL reported a loss of Rs. 959 million and Rs. 414 million respectively, whereas in 2009 and under the new management, the loss was reduced to Rs.109 million, followed by a profit of Rs. 113 million in financial year 2010 for the first time in several years. Now for financial year 2011 a profit of over Rs 100 million is expected to be declared.

50 COMMENTS

  1. The present management of HBFCL have turned this cash hemorrhaging organization around. The only people who are upset about this and thus sending letters and complaints are the Union that represents the low end workers at HBFCL. These low end workers don't like the fact that the present management actually makes them work and not just sit around as in the past.

    The reality is that HBFCL was being run into the ground until the present management took charge. We should all push to get the MD renewed so he and his team can continue their hard work.

  2. I think HBFCL has done an outstanding job and also know the thieves there and the lazy people there have a problem with having to work. But they however do have the time to start a defamation campaign, and then quote Allah. The unions in this country have destroyed our nation by being ignorant unpar jahils.

  3. I hear shafqat ranjha the ministry appointed director nominee, is abou t to be sacked by the govt for being behind this campaign. Evidently, the guy is on OSD and was kicked out by shabaz sharifs govt, and has sexually harassed women at different banks of boards he sits on. Also heard that he got slapped with a bill for all the public finds he has utilized owhich he had no entitlement to but he hasn't paid. And also he is still sitting in the house he got from the Punjab govt and he won't get out despite repeated notices. Pretty sure this guy is behind this campaign too.

    • One thing I can tell you for sure that Mr. Safqat Ranjha is not behind this because I am behind this…. Neither I am enemy of Jafri nor employee of HBFC, past or present, not one sitting in ministry? I am just a Pakistani…You don’t know me… Jafri does not know me… Alas instead of verifying the truth we like to stop the voice… We are planning to take Jaffri and his co-criminals in Supreme court if government has not taken action..recently MD of some institution has been removed by Supreme court… I don’t remember the name, find out yourself. If Mr. Jaffri is right , then why he does not file suit for damages against newspaper Ummat & Transparency International… in this way he may give further money to Awan & Raza…. May ALAH Bless our country and our institutions

      • It is unfortunate that you have not had any experience in running a large company. Apparently, you must think that you can run HBFCL better that the current management. Why don't you use you real name and be heard rather than being a mouse who is hiding in the shadows?

        You will not be able to hide for long and you should remember, Karachi is a dangerous city. Good luck, you are going to need it. Sleep with one eye open.

        • @equalizer, you have come up with your real picture, with threats. Probably, you are bucked up by the fact that, one of the very close relative of the queer and fraudia managing director of HBFCL is in a very high, and important set up in military establishment. So, for you and your boss Jaffri, it might not be very difficult add another one or two in "missing persons' " list, or in the list of target killing!

      • And who are you? A faceless coward who hides behind anonymous postings! Why don't you show yourself and make your so called accusations in person. You are invited to come to the offices of HBFCL and present your issues in person but we know you won't. You are only brave while hiding and writing letters like a little girl.

        You have no idea in regard to who you are dealing with. People who have more education and knowledge than you could ever hope to have in a 1000 years. Come on down to the offices of HBFCL and debate in person or continue to hide.

        • Forget about Reporter, what about your sweet MD, why has he hesitant in talking to journalists.. read Pindi version of Jang.. that says MD avoided journalists.. has nothin to justify, just duffer…Remember MD has support of one chap in army and probable one principal secretary.. he may run to Singapore (though Transparency Internation of Singapore may not leave him) but directors of company and Secretary and Current management would not be excused by NAB.. you know MD is fraud, corrupt don’t support him for a few rupees… Givt testimony against him before NAB .. May ALLAH reward you for that and save you from evil.. it is not difficult for NAB to take help of Pakistan Today.. and get the IPs of those giving threatening remarks here

          • The MD does not need to speak to reporters in regard to what he is doing with the top echelons of the Pakistani Governement. This drama will soon be over and the Md will be renewed, this is guaranteed . He is a man who's reputation is spotless.

      • You may be look into your own black sheeps. Why don't you understand ? that the person behind the scene is Tahir Naz Siddiqui. Who have eyes on MD seat.

  4. Mr. Aman & Amjad Bhatti…. you can write thousands of sentences, MD is great, HBFC is great, Union is bad, Management is innoncent…….like political speech… But all airy remarks. …..every thief says he is not thief …. HBFC Clarification is absurd and you have failed to rebut even a single concrete fact mentioned at http://hbfc-pakistan.freewebspace.com

  5. Actually, your argument is total bakwas and you are a fool who is going to be a loser your whole life. Mr. Concerned citizen, you should move on from this now.

  6. (part 2) It may be gain saying here that, in a counter affidavit submitted in recent past by the Company/Corporation, under the instance and influence of the person in question, in the Sindh High Court, claimed that the incumbent was appointed by the Federal Government under Banking (Nationalization) Act 1974. The Clause 11(12)(c) of the Act says that, “No person shall be eligible for appointment as the Chairman, the President (MD in HBFCL’s case), or a member of the Board if he is not a citizen of Pakistan” What the respondents giving the press clarifications have to say in this regards?

    Another question remained unattended in the ‘clarification’ from the side of the Respondent that, it has not been clarified why in the last annual return form (Form-A) to SECP, submitted on 29-03-2011, the CNIC no. of Mr. Jaffri was reported, and why not his passport no. or NICOP no.? Why had he and his conniver, the Company Secretary, tried to report Mr. Jaffri as a Pakistani to SECP? It is, of course, another question how his present country (reportedly Singapore!) would the issue of its citizen working in Pakistani public sector enterprise, and paying tax to Pakistani authority, in all probability hoodwinking the authority of the other country of his nationality!

    The Respondent clarifies his authority to continue in his position even after attaining age of superannuation and after finally expiring his terms of office on the strength of Section 199(3). It is a material fact that, the incumbent has been appointed by the Federal Government after due approval from the Prime Minister of Pakistan, which was also duly notified in Official Gazette of Pakistan. Secondly, the incumbent does not hold any substantial quantity/amount of shares in the public company (which he and his stooges so passionately hold up) to have substantial voting rights, and also does not represent interest of any special investment group, who would have authority to elect/re-elect him, or in case of any temporary vacancy would continue to hold the position. He held only 1 nominal/token share of Rs.10/- only. And on the strength of this he should not claim the privilege of manhandling the Company! Also another important point: if he could apply Section 199(3) upon him, why then he did not apply the same to other outgoing directors, more particularly on the ex-MD, predecessor to him, so that, shortage of number of the Board of Directors could not have arisen, and the Article 69 of the Articles of Association could not have affected the running of normal business of the Company by the Board!

  7. (part 3) In the clarification, the Respondent has claimed that, the questionable Group Head – Legal was serving in Competition Commission before joining HBFCL. Well, can it be denied that, the Group Head in question has no special interest for the stated law firm, which was her previous employer? Can it also be established that, only on the basis of her job in Competition Commission she was given such an exalted, lucrative and high post with huge monthly salary, in HBFCL? Can the Respondent also show that, necessary “No Objection Certificate” (NOC) was obtained from Competition Commission, which is purely a government concern; and under the law it is mandatory to obtain NOC from that employer?

    While refuting the TIP’s objection not following PPRA Rules while M/s Awan & Raza, the Respondent gave a list of names of other consultants and law firms in whose cases also PPRA Rules were accepted by the Respondent to have not been followed. Can this admission of wrongdoings by the Respondent himself absolve him all wrongdoings? This should have been clarified by him as well!

  8. (part 3) The TIP’s allegations of HBFCL MD’s granting himself millions of rupees is neither false, nor exaggerated. Firstly because, under a specific bonus policy of HBFC given by the Ministry of Finance some times in 2004, and adopted by HBFCL under Vesting Order (SRO No 941(I) of 2010 dated 31-12-2009, no MD of HBFC/HBFCL ever took any bonus, nor was the present MD entitled for it. Secondly, the Board was not empowered to announce bonus, as its total number of members were below the minimum number specified by the Companies Articles and could not do its normal act. Thirdly, even though the Board in existing shape was not authorized to announce bonus, yet it did so only for officers and collective bargaining agents’ staff of the Union, and authorized the ‘MD’ to determine the quantum of individual bonuses and approve the same. But later on the Respondent inserted his name in the list worked out for the bonus recipients without mentioning his status/position in the column of “Designation”. So this was totally irregular, and the same was pointed out by the Commercial Auditors.

    The “clarification” of the Respondent can be refuted sentence by sentence, and even word by word. But what is stated above, I think, is sufficient enough to establish the truth of TIP’s concerns and falsehood of the incumbent respondent’s flowery claims.

  9. Reporter, Read BNA and find it for yourself. It's there, it's just your problem to find it but hbfcl position is legally correct and you are wrong but no one is giving it to you for free. And if you are too incompetent to find it, please feel free to continue chasingyour own tail. MDs appointment is legally sound and confirmed by all relevant authorities including SC. Too bad for you. And stop quoting Allah -he doesn't look kindly upon cowards who hide and send in anonymous letters.

  10. Ok I went and looked at whatever is available on the net regarding financial performance of this organisation. It looks like performance has improved significantly under the tenure of the new mgmtt. This is the bottom line for the tax payer and I wish we would use this benchmark to look at not just hbfc but also pia and Pakistan railways.

    I also think that mr shafqat rajah is behind this – who else but a spurned director nominee would have the time and energy to tap so many doors in such a short while. Who else would have access to enough information to create a plausible but misleading news such has appeared lately. Plus mr reporter was too quick to deny this allegation and notably has not disclosed his name whicdone will have to anyway if he is going to be petitioning the supreme court as he claims.

  11. Ok I went and looked at whatever is available on the net regarding financial performance of this organisation. It looks like performance has improved significantly under the tenure of the new mgmtt. This is the bottom line for the tax payer and I wish we would use this benchmark to look at not just hbfc but also pia and Pakistan railways.

    • @ahmed hakim, where did you look and what did you find? Better performance? Just look at the "financial highlights" in the Annual Reports published by Azhar Jaffri! The average annual disbursements decreased sharply from about 3.5 billion rupees to 0.7 billion in his tenure, under his management. On the other hand the recovery remained steady above 3.0 billion rupees all through these years, including Jaffri's period. Where does the recoveries come from? Naturally, from the old loan accounts! But Jaffri has always claimed that, before his joining in HBFC, bad loanings were made and money has been wasted!!!

      • Were you denied a loan, is that why you are so bent out of shape? The MD has a spotless record as a senior executive with world class companies including Citibank while working in America, UK and Singapore. The majority of the management team have worked at world class companies in the US and UK.

        Since you are making some very big accusations, why don't provide a single instance of misappropriation, termination or any other uncouth act by anyone in management at HBFCL prior to them joining? Surly this "den of thief's" have been up to no good in prior positions. Or is it your allegation that they met at HBFCL and decided to throw a lifetime of pristine reputations out the window?

        I have advance knowledge as to what will happen regarding this garbage you are spewing, it is being tossed out and in the end the MD and his team will remain standing tall while you will crawl back in the hole you came out of. Be careful of the mousetrap because it contains cheese and a muse cannot resist cheese as you know. When it snaps down on your neck, just remember you are worthless scum and got what you deserve. There are powers that are watching this unfold, powers that are far more intelligent and capable than you. No more words, action is coming ISB is not too far away.

        • Because of there performance in World class company they kicked from the World Class and sent here at HBFC. Hahahahaaaa

  12. I subscribe to the spurned director going after the company theory who else would be interested in and have access to the applicable rules and regulations and be able to reference them win a day in a parallel website. Who else would hide behind anonymity.
    Mr shafqat ranja, if you have a legitimate case, please take it up with the concerned ministry or the supreme court. Then we will all back you. Else let's not waste time in this he said she said type of mudslinging. There are far more important issues this country needs to deal with.

    • You can find all stuff against MD (including draft report) from the PC of Tahir Naz Siddiqui. Try it.

  13. Those who are after Mr. Shafqat Ranjha in above discussion, should first come clean and complete about the real story behind the story. I'm sure that my posting will be deleted, yet I would request to consider following points in true legal perspective, if you people get any chance to do so (and the posting is not deleted!):

    1) The person who is sitting as MD in HBFCL (a public sector organization), Mr. Azhar Jaffri, has completed his specific tenure on 5th Jan 2012. After that, the Ministry in which Mr. Ranjha is a bureaucratic officer, has not yet extended this position as yet. The extension is to be done by PM, and Mr. Ranjha has no hand in doing or not doing it!

    2) Mr. Azhar Jaffri has reached retirement age in August 2010, so Mr. Ranjha cannot do anything to reduce his age and give extension, which is against law and against various clear directive of the Supreme Court.

    3) Mr. Azhar Jaffri has returned his CNIC, in all probability in 2006, and according to NADRA report he has also surrendered his Pakistani Nationality. Any one can check this from NADRA and Election Commission of Pakistan. Still HBFCL is reporting his surrendered CNIC number to SECP, meaning thereby, he is working here as a Pakistani. Is this legal? Can any of you do like this, without fearing the chance of being caught by police for fraud?

    THIS IS A UNIQUE CASE, WHERE A FOREIGNER IS WORKING AS LOCAL, AND LAW IMPLEMENTING AUTHORITIES ARE COMPLETELY SILENT!!!!

    Hope, the editor will not delete this and show the journalistic courage to say and learn the truth, and all of you will have the chance to know the real thing. If Mr. Shafqat Ranjha has done anything, it must be considered as a genuine, nationalistic task by a Pakistani bureaucrat, nothing short of it. So, Salute to him!

    • Okay, here are your answers… Whether you accept or not that hbfcl is not a public sector institution is of no matter – the govt accepts that hbfcl is governed by secp and sbp. Let me repeat, it doesn't matter what you believe, it is what it is. Having said that, here are the replies to your questions:

      1. Secp says extension is done under sections quoted above so long as MoF is intimated. Letter above says MoF was intimated and has not replied, therefore legally the md is liable if he leaves in contravention of secp. Leaving would be an irregular act.

      2. If hbfcl is governed by secp as the MoF and sbp ans secp says it is, then 60 year retirement requirement does not apply as that is govt rule. Instead Sbp applies as relevant accordingly, Retirement age of banking sector institution is 70.

      3. BNA is only law which requires citizenship for financial sector institution. In this case, BNA does not apply to DFI's. DFI's are exempted from majority sections of BNA and citizenship is one of the exemptions.

      Your problem is that you don't want to accept the basic premise that hbfcl is not a govt nstitution despite years of documentation from relevant authorities stating on record that hbfcl is a private sector institution. Majority owned shares by govt is a correct statement and hbfcl is majority owned and controlled by govt. But the relevant laws define their jurisdiction and in this case, hbfcl falls under PPRA jurisdiction but not under NAB. I suggest you get yourself educated on the relevantlaw before you continue a pointless campaign that has already resulted in written statements to relevant stakeholders settling this situation.
      and all relevant authorities have also cc'd everyone. What I've stated above is the law and I am sorry that your campaign against the current management isntgoing to work out bc those guys are clear form our end….

      • Ok, if HBFC is not governed by BNA why you are writing to MoF for appointment of MD.. Then it is Board of Directors that has to appoint.. not MoF… Does so called foreign qualified management (actually corrupt duffers as appear from their comments) does not know who is to appoint Chief executive… I have learnt that NAB has started inquiry, it should not only charge sheet foreigner fraudulent MD but also those who are responsible of keeping him there. and earning money through him.. like Directors of Company, High Management, SBP etc… NAB has jurisdiction over Govt. owned institutions don’t you know

        • Yes. NAB has started investigation and they will also visit the Head Office on 23rd May. Close your doors so they can't enter. lol

    • yeh sari information tou Minhaj Qureshi ney Tahir Naz k kehney par deen hein. Is mein Shafqat Ranjha ka kiya kasoor hey ji? Now game will be over soon when TNS will become the MD. (cutting the long story short).

  14. HBFCL has sent a rejoinder…but it has not mentioned any word of suing the newspaper or TIP of unfair reporting…..that is a big question mark on HBFCL credibility ? sue them & the truth will come out…instead of comments by bloggers going haywire……

    • How they can sue TIP? M/s Awan Raza is afraid of not getting payment in these circumstances. hahaaaaaa

  15. These posting are fun to read. It reminds me of an old saying, "never show up at a gunfight with only a knife" as the complainer seem to be doing. I think this MD is like Clint Eastwood saying "Go ahead…Make my Day"

    We all know what happens next….and who remains standing.

  16. I have read the posts.. I don’t know much about the matter but I am aware of BNA & Companies Ordinance and some other banking laws. It seems that team of MD (who are supporting him here) besides being immoral, is just consist of low intellectual people. None of them can respond to a single para of the anlysis, presented in weak English but strong points, posted on hbfc-pakistan.freewebspace.com

    We have lost our national institutions because of such corrupt people

  17. The Government of Pakistan issues a NICOP (National Identity Card for Overseas Pakistanis) to any Pakistani who is legally in another country but is of Pakistani Origin. There is no requirement to relinquish this NICOP card upon return to Pakistan and it is the legally accepted form of identity by the Pakistani Government. Citizens of foreign nations are legally allowed to maintain their foreign citizenship along with a NICOP card.

    • It is HBFC response.. Who trusts on HBFC? Whose MD is fraud? Who, HBFC, is defaulter of SBP but MD is drawing millions of rupees performance bonus? HBFC says in its clarification here that Ms. Atiqa was not a partner in M/S Awan & Raza ” on the other hand her profile on HBFCL website says she was a partner at Awan & Raza… This analysis is made at http://hbfc-Pakistan.freewebspace.com … Why NAB & Ministry of Interior have not given such clarification? Why HBFC does not sue Jang for wrong news?

  18. It is strange why Minsitry of Interior is not putting the name of Mr. Azhar Abbas Jafri on Exit Control List. We should all use our resources to get the name of this fraud foreigner on ECL. Futher, we should write letters to Singapore Government and Singapore Transparency International about such person’s frauds.

    Petitioning Supreme court involves costs but we should at least write letters to the Supreme Court for suo moto notice against fraud foreigner who represented himself as citizen of Pakistan and consequently took control of billions of rupees belonging to citizens of Pakistan. Supreme Court would hopefully, at least, direct Ministry of Interior/ NAB/FIA to start investigation and for the time being put his name on ECL.

  19. Tahir Naz Siddiqui has been persuing the FIA and NAB officials to investigate the appointment of MD. He is more desperate to kick out him.
    He got information that he will become the MD soon so he is pushing the FIA and NAB to get ride off Mr. Azhar.
    Thanks 2 Jafferi Sahab, who made his own guy to compete him and kick him out from Corporate Arena.
    Best of luck!!!!!!!!!!!

    • Ye. We know. Tahir Naz Siddiqui set-up a planned 2 get-rid-of from GH(Legal) and GH(Audit). You can analyse because the CBA talked about the renewal of TNS in daily jang newspaper dated 29-05-2012 and left the other Groups Heads those have equally Contributed in HBFC.
      I think, you can better understand the plan of Tahir naz.

  20. Dual national has been kicked out from National Assembly. But here in HBFCL a man who surrendered his Paki nationality is still holding the public office. v bad.

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