“We appreciate your hard work on enforcement of Right to Information Act. This is particularly appreciable that you guys have begun to make the unbridled J&K Bank accountable in the interest of the poor people of Jammu & Kashmir. It is unforfunate that according to its changing and varying suitabilities, J&K Bank has been sometimes calling itself a Govt company—I am in possession of such correspondence of the bank with Reserve Bank of India—and sometimes a completely independent financial body. In 2008, Chairman of the bank enhanced the age of retirement of the bank staff from 58 to 60 years during election time in the state. When Election Commission of India took it as violation of the moral code of conduct of the government controlled company, the bank authorities succeeded to convince it that it was not a government body, hence not under purview of Moral Code of Conduct of the Government and Government-controlled organisations. I wonder how Election Commission of India authorities entertained such a fallacious argument. Didn’t they know that Government of J&K has 53.17% share in J&K Bank. Didn’t they know that J&K Finance Minister also happens to be the Co-Chairman of J&K Bank by virtue of that equity. Didn’t they know that 7 out of 12 Directors on Board in J&K Bank are nominees of J&K Government?
Later, it became known that the enhancement of retirement age was particularly for the benefit of two senior functionaries whose retirement on time in 2008 would have possibly resulted in promotion of Chairman’s persona non grata to the top positions.
J&K Bank authorities insist that neither Central Govt organisations—Central Vigilance Commisssion etc—nor those of the state government, like Crime Branch and State Vigilance Organisation, have any jurisdiction on the bank. One wonders, which accountability watchdog would then control corruption and other malpractices in a company which has 53.17% equity from J&K Government and thus the Government is competent to influence all decisions and proceedings of the bank, including constitution of the Board of Directors and even the Chairman. I believe there is broadly agreement over it that what SBI is to Government of India, J&K Bank is to Government of J&K. If the Central act is applicable to SBI, why is not the state act applicable to J&K Bank?
Even J&K Chief Minister is not entitled to purchasing furniture etc for Rs 10 Lakh (One million) and retain it for life even after losing power. Few months back, J&K issued a Circular whereby Chairman has authorised himself to buy furniture etc to the tune of Rs 10 Lakh and retain it for life at his home even after retirement/ expulsion. After all 53% equity of the bank is public money and must be auditable in a transparent manner. It has been observed that unfortunately majority of the Board of Directors does subsequently accord sanction to all the ommissions and commissions of the bank authorities after taking their own share in everything from loans without security to backdoor appointment of the favourites and relatives of the individual directors. One of these directors has not even the moral authority as he was ineligible for this appointment under RBI rules and guidelines for having conducted audit of the same bank in the last three years.
Notwithstanding the fact that J&K Bank is controlling more than 95% of the J&K media by way of the largesse of heavy advertisements and other support, overtly and covertly, and a many of our representatives of the national media are also either the Chairman’s friendlies or perceptibly on his pay rolls, I am hopeful that your crusade will bear the fruit one day. I believe Mr Wajahat Habibullah must be put to the first test of his efficacy and integrity in J&K with this Government controlled company that likes to continue as ‘fiefdom in darkness’ rather than a state in sunshine.
Sincerely
Ahmed Ali Fayyaz
Journalist
Srinagar, Jammu & Kashmir
aafayyaz@gmail.com