The composition of Zarai Taraqiati Bank Limited (ZTBL) Board of Directors (BoD), which had allegedly written off loans to the tune of millions of rupees to some influential industrialists, has been challenged in the Islamabad High Court (IHC).
Challenging eligibility of all nine members in the board, the petitioner, who is also an employee of ZTBL, requested the court to stop the board from working any more.
A divisional bench of IHC comprising Chief Justice Muhammad Hussain Kasi and Justice Shoukat Aziz Siddiqui heard the petition and issued notices to all respondents.
Through his counsel, the petitioner apprised the court that former president of ZTBL, Muhammad Zaka Ashraf, who is now Pakistan Cricket Baord’s Chairman, still enjoys membership of the ZTBL board. “Zaka Ashraf is not fit according to BRDP circular No 4/2007 issued under the Prudential Regulation framed by the State Bank of Pakistan for good governance and regulation of the bank. He is an undergraduate and a very active member of the ruling party. However, he is exercising his power for the last four years as a board member and a member of critical decision making committees such as Human Resource Management Committee, Board Audit Committee and Committee on Credit plan,” read the petition.
The petitioner pleaded that the directors proceeded to act in violation of law, extending illegal benefits to some clients based on political grounds, by application of SBP Circular No.22, of 2002, which was not applicable in the particular case.
The petitioner alleged that the board’s decisions had caused a loss to the public exchequer worth Rs 2111.629 million.
The plaintiff further told the court that all members enhanced their fee per meeting from Rs 4,000 to Rs 30,000-exclusive of club class air tickets and executive rooms in five-star hotels. After hearing the arguments, the court issued notices to respondents including secretary cabinet, secretary establishment, SBP governor, ZTBL, Zaka Ashraf and other board members, adjourned the hearing for an indefinite period.
