BoP clarification

The Bank of Punjab clarified the contents of a report carried by Business Recorder on December 22, 2011 and a section of press. The following is a BoP clarification:
"The actions speak louder than the words. The Bank of Punjab has achieved successful results by launching highly organised and well planned efforts for recovery and regularisation of its non-performing Assets (NPA). The present management has been able to make direct recovery of more than Rs 19 billion from the loan defaulters, while negotiated settlements of NPA through rescheduling/restructuring in Corporate Cases alone, have soared over Rs 30 billion, which are performing as on date and repayments are being received regularly.
"Contrary to the press clippings, BOP has taken every possible measure permissible under the law for recovery of its non-performing loans. Apart from initiation of litigation, referral of wilful default cases under National Accountability Ordinance, 1999 BOP has already forwarded 15 direct complaints to Chairman NAB under section 9 for recovery of around Rs 12 billion during the year, 2010.
"Needless to mention that NAB under the relevant provisions of NAO, 1999 can proceed for inquiry and prosecution of delinquents upon receipt of complaint from the Bank under Section 9 of NAO 1999 without engaging the regulator of the banks.
"Apart from initiating litigation against 122 Corporate defaulters, which includes suits for recovery against Three Star Group in 2009/2010, BOP also sent complaints to NAB under S/9 of NAO, 1999 against Three Star Group comprising of Three Star Hosiery Mills (Pvt) Ltd, Active Apparel (Pvt) Ltd, Dandot Cement Company Ltd, Mansoor Rasheed, Muhammad Rasheed and Saud Rasheed on 17/05/2010 (followed by a refresher dated 04/11/2010) along with nine other accounts, namely (1) First National Equity Ltd, (2) First Pakistan Securities Ltd, (3) Ali Aslam Malik, (4) Chimera (Pvt) Ltd, (5) Gas Naturale Ltd, (6) Synergy Power (Pvt) Ltd, (7) Ali Akbar Spinning Mills Ltd, (8) International Ceramics (Pvt) Ltd and (9) Windmill Restaurant during the period June-August, 2010 followed by three recently forwarded complaints against First Dawood Investment Bank Ltd,. In the past, BOP cases have remained dormant at NAB for want of appointment of its chairman, which requirement has recently been fulfilled and the Chairman has now taken charge of his office.
"There is no demand from NAB for providing any record as appeared in the news clipping. In fact, soon after appointment of Chairman NAB, President BOP along with senior officials of the Bank had a detailed meeting with the Chairman at NAB Headquarters on 12/12/2011 and gave presentation on Haris group and other NPAs referred to NAB. In view of sizeable recovery of defaulted loans in the past through NAB, it was informed that BOP had also forwarded to NAB a number of cases of wilful default including cases of fraudulent lending allowed in connivance with the ex-management and the cases wherein offences of misappropriation of securities had been committed for speedy recovery of public money, because, recovery of same is not otherwise possible through normal civil litigation.
"The NAB Headquarter has already issued formal instructions to NAB Lahore to extend all out support for recovery of NPAs. BOP hopes its efforts initiated in 2009/2010 will bring out fruitful results once NAB initiate formal action under the law. "Apart from recovery of over Rs 7 billion in other cases, BOP has recovered till to date over Rs 12 billion in Corporate NPAs during incumbency of the present management with Rescheduling/ Restructuring of over Rs 30 billion.
"In addition to the cases forwarded to NAB, BOP has filed suits for recovery in 122 cases of Corporate lending out of which 27 cases worth Rs 9 billion have been decreed, which include 19 cases of over Rs 8 billion decreed under compromise arrangements. The other hard-hitting measures adopted by BOP for recovery of NPAs includes placement of names of 32 high profiled defaulters on Exit Control List along with lodgment of 26 FIRs. To supplement its recovery drive, BOP has also traced 66 hidden assets of defaulters worth Rs 2.6 billion in 22 default cases for attachment and sale for recovery. "BOP, therefore, categorically denies the allegations of slow or not adopting serious efforts for recovery of loans as appeared in the newspapers."