PNB fraud: Govt to chase down those who cheat banking system, says Jaitley
Finance Minister
Arun Jaitley on Tuesday blamed senior officials of public
sector banks (PSBs),
lenders’ auditors and the regulator for financial fraud.
The
management at public sector banks has
been found lacking in checking delinquent customers, auditors have
“looked the other way”, and the regulator has to ensure that
stray cases of financial fraud don’t become the norm, he said.
This
was Jaitley’s first public statement since the Rs 114 billion fraud
at Punjab
National Bank came
to light.He said the state will chase down cheaters to the end.“The
prime minister himself said at a Gyan Sangam that we want you (banks)
to be autonomous, none of us is going to call you up, and, therefore,
take your own decisions.
When
authority is given to the management, you are expected to utilise
that authority effectively and in a right manner. Therefore, the
question for the management itself is, was it found lacking? And on
the face of it, the answer seems yes. You are found lacking when you
are unable to check who among them were delinquent,” Jaitley said
at event.
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big arrest in PNB fraud: Vipul Ambani, four others held by CBI“What
were the auditors doing? Both internal and external auditors really
have looked the other way or failed to detect (frauds), where I am
sure the profession of chartered accountancy itself, and those who
control the discipline of the profession, will start introspecting
and say what legitimate actions are to be taken,” the minister
said. “And also there is an important challenge where the
supervisory agencies are now, to introspect as to what are the
additional mechanisms they have to put in place to ensure that stray
cases do not become a pattern again.
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