Irregular activities revealed at National Bank Pakistan

The Auditor General of Pakistan (AGP) has uncovered huge sums of irregular payments in the National Bank of Pakistan (NBP) from 2012 to 2020, causing the public exchequer a deficiency of over Rs. 235 billion.

As per subtleties, the review has been completed by the Director-General Commercial Audit and Evaluation Karachi wing of the AGP. The report has distinguished 117 examples of misappropriations, inconsistencies, non-recuperations, and infringement of rules in the NBP during the period under perception.

Here is a rundown which subtleties every one of the abnormal occurrences in the NBP.


S. No	Subject
1.	Irregular appointment, promotions, and deputation of SEVP/Group Chief (Logistic) – Rs.813.18 million
2.	Irregular appointment of SEVP/ Head (International Banking) – Rs. 33.980 million
3.	Irregular appointment of Chief Technology Officer/Group Chief -Rs.33.252 million
4.	Irregular appointment of SEVP/Group Chief/ Head (HR) – Rs.33.980 million
5.	Irregular appointment & promotion of SVP/Head of Compensation & Benefits – Rs.13.806 million
6.	Irregular appointment of EVP / Senior HR Business Partner – Rs. 14.195 million
7.	Irregular appointment of EVP / Senior HR Business Partner – Rs. 8.500 million
8.	Irregular appointment of SVP/ Chief Security Officer – Rs.6.00 million
9.	Irregular appointment of SEVP/Group Chief (Chief Risk Officer) – Rs.24.208 million
10.	Un-authorized payment of salary to SEVP without joining the Bank -Rs.24.208 million
11.	Irregular appointment of employees without advertisement – Rs.267.635 million
12.	Irregular appointment & promotion of SVP/ Corporate Head – Rs.36.190 million
13.	Irregular appointment of Vice President (VP) / Executive Logistic Support- Rs.20.349 million
14.	Illegal/defective appointment of President/CEO (NBP) – Rs. 307.17 million
15.	Irregular appointment as Chairman, Board Specialized Committees – Rs. 3.278 million
16.	Irregular appointment of Chairman, Board of Directors
17.	Irregular appointment of Manager (E-Remittances) – Rs.14.502 million
18.	Irregular appointment of SVP/ Head of Organizational Effectiveness – Rs. 9.902 million
19.	Irregular appointment of EVP/ Divisional Head (International Business Strategy) – Rs. 16.380 million
20.	Irregular & unlawful appointment of SVP/Wing Head-Recruitment & Placement – Rs.17.728 million
21.	Irregular deployment of Senior Executive Vice President (SEVP) on deputation and payment of benefits – Rs. million
22.	Irregular appointment of EVP/Divisional Head (Learning & Development)- Rs.7.200 million
23.	Irregular appointment of EVP/Head of HR Governance – Rs.9.500 million
24.	Irregular appointment of employees after attaining the age of superannuation – Rs.611.065 million
25.	Irregular appointment of VP/Research Associate for Chairman (BoD Secretariat) – Rs.4.200 million
26.	Irregular appointment, promotion & extension of contract beyond 60 years of EVP/Secretary Board – Rs.51.570 million
27.	Irregular payment in lieu of end service benefits – Rs. 29.396 million
28.	Irregular appointment of Vice President/HR Business Partner – Rs. 6.480 million
29.	Wasteful expenditure on employment of Special Assistance at Chairman Secretariat (BoD) on retainer ship basis – Rs. 4.500 million
30.	Irregular appointment of SVP/Wing Head (HR Operations) -Rs.18.92 million
31.	Irregular appointment of SVP/Head of Leadership Development – Rs.4.400 million
32.	Irregular appointment of Vice President /Wing Head (Engineering Wing) – Rs.6.300 million
33.	Irregular/unauthorized employment of staff at Chairman Secretariat (BoD) – Rs.18.840 million
34.	Irregular Appointment of Vice President/Wing Head (Corporate Investment Banking) – Rs.14.320 million
35.	Irregular appointment of HR Business Partners on favoritism basis – Rs.7.343 million
36.	Irregular appointment of Vice President (VP) – Head of Business Technology – Rs. 28.440 million
37.	Excess payment to BoD members in violation of Finance Division directives – Rs. 6.556 million
38.	Irregular appointment of Vice President/Wing Head (AML-CFT) – Rs. 9.870 million
39.	Irregular appointment of Legal Advisory Associate through defective criteria – Rs. 1.750 million
40.	Irregular appointment of Executive Secretary on favoritism basis – Rs.1.050 million
41.	Irregular payment in lieu of un-availed privilege/annual leave – Rs.1.459 million
42.	Irregular appointment of executives/officers without the involvement of Head Hunters – Rs.72.462 million
43.	Loss due to defective club membership policy – Rs. 72.637 million
44.	Loss due to irrational dual club membership – Rs. 7.310 million
45.	Loss due to the inappropriate procedure adopted in hiring Consultancy Firms – Rs. 13.621 million
46.	Mis-procurement in awarding a contract for the hiring of Head hunters without tendering – Rs. 52.779 million
47.	Wasteful /irrational expenditure on hiring Head hunters – Rs. 103.086 million
48.	Undue favor by acquiring House Building Finance at the appointment – Rs. 287.028 million
49.	Irrational/defective buy-back policy of vehicles – Rs. 83.462 million
50.	Irregular payment to Head hunter/consultant in violation of consultancy agreement – Rs. 2.706 million
51.	Irregular promotion on defective/irrational policy
52.	Irregular promotion of 75 Officers/Executives in violation of Promotion Policy
53.	Non-verification of educational certificates and antecedents through Head hunters/ Consultants
54.	Loss due to delayed verification process initiated against fake degrees/certificates holders
55.	Unlawful retention of convicted officials in harassment case
56.	Overstay allowed to employees at foreign branches
57.	Delay in the verification of degrees and antecedents
58.	Non-production of auditable record
59.	Irregular disbursement of loan in Bangladesh branches – Rs. 25,842.86 million (USD 164.04 million)
60.	Loss on the penalty imposed by SBP/other Regulatory Bodies – Rs. 3,322.304 million
61.	Non-recovery of no-performing loans of NDFC (defunct) – Rs.3,592.901 million
62.	Loss on purchase of shares at higher rates – Rs. 2,331.546 million
63.	Non-transfer of ownership of PSO shares – Rs. 8,193.241 million
64.	Loss on sale of land at lesser rates – Rs.65.500 million
65.	Non-recovery from defaulters – Rs. 18,967.81 million (USD 120.400 million)
66.	Loss due to non-recovery of outstanding principal – Rs. 6,132.678 million
67.	Blockade of funds by investment in unquoted securities –Rs. 437.886 million
68.	Non-utilization/disposal of non-banking assets acquired in satisfaction of claims – Rs. 3,968.329 million
69.	Loss due to excess payment of interest on deposit accounts – Rs. 4.353 million
70.	Unrealized loss on forwarding foreign exchange contracts –Rs. 7,276.90 million
71.	Unrealized loss on put option – Rs. 306.339 million
72.	Loss on purchase of shares at higher rates –Rs. 2.414 million
73.	Loss due to non-recovery of outstanding interest – Rs. 11.973 million
74.	Non-recovery against Nostro Foreign Accounts – Rs. 4.794 million
75.	Loss due to poor performance of Groups/Department – Rs.70,087.67 million
76.	Wasteful expenditure on the investigation of Bangladesh Operations- Rs.10.00 million
77.	Violation of Accounting Standard IAS-8 (Change in Accounting Estimates and Errors) – Rs. 286.00 million
78.	Outstanding entries of Nostro Foreign Accounts – Rs. 8,097.709 million
79.	Non-recovery of outstanding advances -Rs. 52,882 million
80.	Irregular investment in companies by holding shares more than 30%
81.	Non- resolving of suspicious transaction alerts in violation of the Anti-Money Laundering (AML) Act
82.	Violation of SBP Regulations and Anti-Money Laundering (AML) Act
83	Non-obtaining of audited financial statements/Wealth Statement of borrowers in violations of Prudential Regulations
84.	Weak Internal Control Systems in NBP, Bangladesh branches
85.	Loss due to cash shortage in Vault and ATM at Nowshera Road Branch – Rs. 12.516 million
86.	Embezzlement/misappropriation in FE-25 loans, FIM, and Bill of Exchange– Rs. 2,787 million
87.	Loss due to non-deposit of the amount into Federal Treasury at KDA Civic Centre Branch, Karachi – Rs. 307.436 million
88.	Fraud/forgery in SSP Officer Account at Kandhkot Branch, Larkana – Rs. 215.705 million
89.	Embezzlement of Government funds (DPO Account-Gujrat)– Rs. 630.800 million
90.	Misappropriation/embezzlement in Government pension payment at main branch, Kotri, Hyderabad – Rs. 70.723 million
91.	Loss due to fraudulent activities in Khuzdar Cantt Branch– Rs. 19.219 million
92.	Loss due to fraud/embezzlement in Government Treasury at Pano Akil City Branch – Rs. 309.452 million
93.	Loss due to misappropriation of funds / internal fraud engaging at Khanaspur Ayubia & Khairagali Branches, Abbottabad – Rs. 472.539 million
94.	Loss due to embezzlement of funds at Qamrooti Branch, Mirpur (A.K) – Rs. 44.899 million
95.	Loss due to dacoity during transportation from Taftan to Dalbadin (Chest), Regional Office, Quetta– Rs. 53.00 million
96.	Loss on disbursement of bogus Agriculture Finance – Rs.20.385 million
97.	Misappropriation/embezzlement through accounts of demand finance gold – Rs. 70.723 million
98.	Loss due to fraud at Timber Market Branch, Multan– Rs. 31.307 million
99.	Loss due to unauthorized debit to GL Heads ATM Cash at Loralai Branch, Sibi – Rs. 67.240 million
100.	Loss due to fraud by Manager, Serhota Branch District, Kotli Mirpur (AJK)– Rs. 21.018 million
101.	Loss due to fictitious/flying general entries at Jhang branch – Rs. 28.131 million
102.	Misappropriation/shortage in cash at Jutial Cantt Branch, Gilgit– Rs. 17.105 million
103.	Loss due to replacement of original gold ornaments with fake ones– Rs. 13.587 million
104.	Fraudulent withdrawal through IBT from the account at Anarkali Branch, Lahore– Rs. 11.237 million
105.	Misappropriation/shortage in cash vault at Remount Depot Branch, Sargodha – Rs. 13.155 million
106.	Loss due to cash shortage at Main Branch, Multan – Rs. 14.430 million
107.	Loss due to negligence of bank staff at Nazimabad Branch, Karachi – Rs. 32.00 million
108.	Loss due to theft of gold ornaments at Thandkoi Branch, Mardan – Rs. 51.00 million
109.	Loss due to fraudulent pension payment at Dera Allah Yar Branch, Sibi –Rs. 8.201 million
110.	Embezzlement/misappropriation at Model Branch Clifton, Karachi – Rs.5.900 million
111.	Loss due to fraudulent payment from an account at Durand Road Branch, Lahore – Rs. 8.700 million
112.	Embezzlement through payment of tampered/altered payment order –Rs. 7.051 million
113.	Loss due to embezzlement by staff members at AIB Gulistan-e-Johar Branch, Karachi – Rs. 3.378 million
114.	Loss due to fraud through fake property loan against Saibaan Scheme – Rs. 3.458 million
115.	Loss due to misappropriation/embezzlement in NBP Advance Salary Accounts at Abbaspur Branch, Muzaffarabad – Rs 2.487 million
116.	Loss due to penalty imposed by SBP on violation of Foreign Exchange Regulations Act, 1947 – Rs. 1,200.718 million
117.	Disbursement of loan to M/s Hascol Petroleum Limited -Rs. 14,150 million
	Total: Rs. 235,823.9 million