NICL director's appointment: investigation ordered

26 Jan, 2016

Prime Minister Public Affairs and Grievance Wing Ministry of Parliamentary Affairs has directed Secretary Ministry of Commerce to investigate the appointment of Ameen Bandokda as Director M/s. National Insurance Company Limited (NICL) within 30 days, informed sources told Business Recorder.
The decision to investigate the matter was taken after the filing of a report in Business Recorder. According to the State Bank of Pakistan Consumer Protection Department Bandokda's over due loans totalled Rs 16.8 million - Rs 11.54 million overdue by 90 days and Rs 6.3 million overdue by 60 days.
Insurance Companies (Sound and Prudent Management) Regulation, 2012 stipulate that anyone with overdue loans exceeding Rs one million is a defaulter and ineligible to hold office of a director of a public sector insurer.
Shafiq-ur-Rehman, Deputy Director, SECP Insurance Division Islamabad, vide a letter dated January 22, 2016, addressed to Section Office (Insurance) Ministry of Commerce maintained that "in order to assess the applicants in light of the aforesaid criteria, the Commission has started the practice of obtaining the CIB Reports from the State Bank of Pakistan with effect from August 3, 2015" and has forwarded the response received from NICL to the Ministry of Commerce "for further necessary action in the matter, if any."
Executive Director and spokesperson SECP clarified that the Ministry of Commerce had forwarded an affidavit on stamped paper confirming that Bandukda was eligible for the post - an affidavit which accounted for SECP's approval. She added that she would bring to the attention of the Commission any matter which may potentially affect his status as Director.
She further maintained that the matter of overdue balance in Bandokda's CIB Report has been referred to Ministry of Commerce, the competent authority for appointment/removal of directors in public sector insurers, for further necessary action in the matter.

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