Bank of Khyber fails to appoint new MD after 9 months
Aziz Buneri
PESHAWAR: The Bank of Khyber’s Board of Directors has been unable to reach a consensus on appointing a permanent managing director (MD) for the past 9 months, leading to the bank’s operations being managed by an acting MD.
According to bank sources, the board’s meeting on August 28 faced a deadlock over the appointment of a new MD. The finance secretary, who was holding additional charge as the secretary of the Management Board of Reforms (SMBR), expressed disagreement with the board’s proposed candidate.
Sources further revealed that secretary finance Amer Sultan Tareen had initially agreed to the board’s nominee during the first session of the meeting, however, after assuming the additional charge of SMBR, he changed his stance.
The candidate shortlisted by the board had previously been terminated from a big Pakistani commercial bank and was currently serving as chief of a multinational investment company.
Bank sources indicated that the authority to appoint the MD of BoK was previously vested with the provincial government. However, following amendments to the bank’s act, this authority has now been transferred to the board, which consists of both the government and private members. Despite this, the KP finance department continues to exert influence over the appointment process, having invited three candidates for interviews without consulting the board.
When contacted, the Chief Minister’s Advisor on Finance, Syed Muzzammil Aslam, stated that the provincial government was the largest shareholder in the Bank of Khyber and had the right to meet and interact with any officer of the bank.
Bank sources highlighted that the frequent disagreements over the appointment of MDs in the past have led to significant financial challenges for the bank, with Non-Performing Loans (NPLs) exceeding 14 billion rupees.
Sources also revealed that the bank had re-advertised the position of MD, while the previous advertisement had been halted during the general elections by the Election Commission of Pakistan, adding that the ongoing delay in appointing a permanent MD had created a situation where both the government and private members were lobbying for their preferred candidates, potentially compromising the selection process based on merit.
Despite sending a voice message on WhatsApp and e-mail to get their stance, no response was received from the Bank of Khyber’s officials.
Related Posts
Comments