The bankruptcy of Natover Leasing Refinance Limited has deprived 1,600 families of their savings and forcing some of them to beggary. The company had been running business for the last 22 years seeking investment from the people under the supervision of the Security and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan.
The company owes Rs 900 million to the 1,600 families of whom 900 were from North-West Frontier Province (NWFP). The affectees of the company include widows, orphans, retired government servants and senior citizens, who had invested their capital in the company. Till February 2008, the company had regularly profit on their investments but suddenly it was stopped and even the payment of the principal amount was also blocked.
On violation of the company laws, the regulator, SECP suspended the Board of Directors of the company and appointed an administrator at a very high salary of Rs 0.6 million per month.
The blockade of the payment of profit and return of the principal amount had pushed the affectees to hunger. "We neither are in the position of depositing utility bills or bear the expenses of the education of our children," complained Naseem Ahmad, Chairman, Effectees Natover Leasing & Refinance Ltd. The effectees criticised the failure of the regulator in poor monitoring of the performance and activities of the company. "Better monitoring by the regulator would have prevented the situation from deterioration," he added.
Flanked by 25 affected families, he alleged that influential people establish and register big companies and go for default after getting investment from widows, orphans, retired government servants and senior citizens. The companies, he said then goes for liquidation and sells out to new management.
Talking about the miseries and difficult situation faced by the effectees, Naseem Ahmad said that a widow, who is the mother of two dumb children has no resources even for depositing the utility bills of electricity, gas and water of their house. He said that the mother and sons had left with no option other than opening their palms in front of people and go for beggary.
The effectees demanded President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, Advisor on Finance Shaukat Tarin and Chief Minister NWFP Ameer Haider Khan Hoti to take notice of their miserable financial conditions and take measures for revival of the company. They also called for announcement of a bailout package from the company to revive the effectees from their difficulties. They also demanded the Chief Justice, Iftikhar Mohammad Chaudhry to take suo motto notice of the matter to rescue the affected people of the financial difficulties.