Transparency questions appointment of HBFC MD

Transparency International Pakistan has received a complaint against alleged illegal appointment of Azhar Abbas Jaffery as Managing Director of the House Building Finance Company Limited (HBFC) who the TIP alleges does not have Pakistani nationality while he also faces allegations of financial irregularities.
In a letter sent to Dr Abdul Hafeez Shaikh, Minister of Finance, Revenue, Economic Affairs, TIP advisor Adil Gilani raised serious questions against Jaffery and said that the HBFCL has been restrained from convening meetings, either of HBFCL board or any of its committees by the government of Pakistan.
“That MD, Azhar Abbas Jaffery, was appointed under section 11 of the Banks Nationalisation Act, 1974. According to section 11(12), a person who is not citizen of Pakistan shall not be appointed under this section. According to section 11(5), a person who is disqualified under section 12 after appointment shall stand removed,” said the letter.
The TIP stated that the SBP has written a letter to Wajid Rana, Secretary MoF on HBFCL stating , “in the light of reservation expressed by the State Bank of Pakistan (SBP) and Security and Exchange Commission of Pakistan (SECP) after confirmation from NADRA that HBFCL Managing Director, Azhar Abbas Jaffri has surrendered Pakistani nationality after obtaining the nationality of Singapore”. Azhar Abbas Jaffry was appointed HBFCL MD in 2009 by the PPP-led coalition government.
Gilani further said that Azhar Abbas Jaffery has allegedly managed to appoint in 2010 one Ms Aatiqa Lateef a partner of M/s Awan & Raza as Group Head, Legal, Strategy & Marketing at HBFC, and anther partner of M/s Awan & Raza Mr. Awan Raza as HBFC legal Advisor, without inviting expression of Interest in press and PPRA website at exorbitant cost, as well as additional expenses of travel and lodging/boarding as he comes from Islamabad which is violation of Public Procurement Rules 2004.
Gilani said according to news reports alleging that the MD had granted million of rupees as bonus to himself and cheque numbers were also quoted. It was further alleged that before the appointment of Mr. Jaffery in the HBFC, the disbursements were Rs.3.85 billion rupees while when he was made MD in 2009, the lending fell to 715 million and then 679 million in 2010. “Also that Mr. Jaffery’s contract has expired three month ago in January 2012, but he is still continuing as MD of HBFC,’ said Gilani.
He further alleged that the terms of Mr. Tasneem Ahmed Siddiqui and Mr. Zakaria M. Fazil (representative of ABAD) as Chairman/director and Director of HBFC expired in 2005 but they were illegally continuing without Ministry of Finance notification of since 2005 ( 7 years) though SBP has given its clearance for issue of notification to MoF in April 2010.
“That SBP has communicated its serious objections on the illegal status of the two Directors to Mr. Wajid Rana, Secretary MoF, who has taken no action against them. SBP has also suggested to the MoF that presence of directors in a public sector institution for over a decade is undesirable from the perspective of good governance”.
He added that the Board of Directors, which is illegal as Tasneem Ahmed Siddiqui and Zakaria M. Fazil have seized to be directors of HBF in 2005, have increased the Director Board’s monthly remuneration by 500%, from Rs 5,000 to Rs 25,000.
“Moreover, the same illegal board has approved annual bonus of Mr. Azhar Abbas Jaffery up to Rs 2,5000,000”.
Transparency International Pakistan has request the minister to examine the allegations, and if they are correct, appropriate action needs to be taken urgently, as under the rules of business, Minster of Finance was fully responsible for allowing as well as condoning such violations, including that of Public Procurement Rules 2004, and is to be held accountable under the law of land.



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21 Comments

  1. BBA said:

    May ALLAH Bless our nation, where such fraudulent people, who are not even citizen of Pakistan are made head of financial institutions, that are backbone of our economy

  2. concerned-citizen said:

    It is not section 11(5) of Banks Nationalisation Act that says that one who is disqulified under section 11(12) shall stand removed. It is actually section 11(3)(c) of Banks Nationalisation Act that contains such Rule.
    But I am surprised in the presence of such clear provision of law how Jafri is holding this important position. What our agencies, especially FIA is doing. His name should be entered on ECL immediately so that he may not run and he should be arrested for committing fraud on nation for fradulently pretending to be citizen of Pakistan for obtaining position of MD

  3. hbfc said:

    You may send NIC of Mr. Azhar Abbas Jaffery, 42301-6474193-1 by sms to “8300” i.e. Election Commission of Pakistanand to Nadra at "7000". You will get that the said persons has surrendered his nationality. If you put the same NIC at NTN verification, at FBR website address , you will get confirm that it belongs to Azhar

    • Disgusted Pakistani said:

      @hbfc, if FBR, which might also be headed by a fraudster of Jaffri's caliber, failed update its CNIIC database, does this mean that, the fraudster is not a fraudster but a genuine Pakistani? All these have been independently verified by MoF and SBP, and found the facts which are in the news item.

  4. hbfc said:

    Our comment was misinterpreted… We are just saying that if you put this NIC at FBR website NTN verification you would find that this NIC No. belongs to none but Azhar Abbas Jaffri.
    Otherwise having NTN proves nothing as a foreign citizen may also have NTN. However, negligence of FBR comes forward that hey don't bother to verify NICs given to them

  5. Nauman said:

    BNA does not apply to HBFCL and specifically excludes HBFCL by name. This pakistani citizenship in not required for MD position of HBFCL. Paper should check its facts before embarrass itself and blindly leading the blind.

  6. Majid said:

    Mr. Nauman, please would you share the sections of Banks Nationalisation Act 1974 which says HBFCL is excluded from BNA. What about Articles of Association of HBFCL which says with reference to section 11 of BNA that it will apply to the Company. I humbly think that you are wrong

    • ishrat salim said:

      just chkd yr provided link…nothing there ? however, clarifications does not mean the news is wronly reported & MD is off the hook…..TIP does not usually sends such report without doing their homework…bcz for any wrong reporting TIP can be sued..a risk not worth for its international credibility.

  7. Mehdi Zaidi said:

    I can bet, the “strategic planning” to kick out the HBFCL CEO was organized and planned by the Tahir Naz Siddiqui. He kept eyes on the MD seat and destroy the Good-will of Mr. Azhar Abbas Jafri. He provoked MD to took wrong financial decisions and reduce the disbursements etc. I think Mr. Jafri should remove the black sheep from his Management group for more success, but he didn’t.

  8. Well Wisher said:

    Management Gurus!
    Apni Zamanat karwa lo kahin dair na hojay.

  9. Tooba Anwar said:

    Most duffer management in the history of HBFCL. Not a single GH can get a job other than HBFCL. Fail GHs of HBFCL.
    MD stuck-up on seat after expiry of contract.

  10. hbfcl said:

    I will salute to the NAB Chairman, if he can look in to the HBFCL issues.

  11. Fasih Ullah said:

    Kanjar management ney aab Pamper pahan kar ghumna shru kar dia hay

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