Is the absence of directors representing officers and workers on the board of Punjab National Bank one of the reasons frauds committed against the bank did not get exposed? The All India Bank Employees Association said the NDA government had not filled up the two posts since 2014, despite reminders from unions.
And, it is not just the case of Punjab National Bank. The posts representing employees have not been filled in 19 other banks. These directors are to represent public interest. But, in many cases, they are an aggressive lot, and are not liked either by bank bosses or by IAS officers from the finance ministry representing the Government of India. But, unions consider these directors as sentinels who watch out for variations in credit norms, and put the management and even the finance ministry on the back foot. Filling up these posts, however, is not mandatory.
Since unions are perceived to be either leftists or centrists, there is an allegation that the BJP government has not been keen on appointing directors not affiliated to the Bharatiya Mazdoor Sangh. But the BMS, which belongs to the sangh parivar, too, has a grievance that its voice is not heard by the banks or the Indian Banks’ Association. The unions said they had written to Prime Minister Narendra Modi and Finance Minister Arun Jaitley, but there was no action. According to government sources, the appointments are stuck in the labyrinths of Lutyens Delhi, while the banks said rival claims from unions were delaying the nominations.
Illustration: Bhaskaran
There is a complaint that it is easier to push an elephant through the eye of a needle than to get quick approvals from the PMO or the department of personnel under the prime minister for sensitive appointments. Appointments ranging from that of senior clerks in personal offices of ministers to judges in the higher judiciary are subject to enormous amount of vetting. Thousands of proposals are stuck in the pipeline, and when there are queries, the file has to be seen personally by Modi, who has a hectic schedule.
Unions argue that police cases are an occupational risk as their members often take part in agitations, but that should not be the reason to bar their nominees from bank boards. In many cases, a special division of the Intelligence Bureau checks for adverse traits in a candidate’s career, and will raise the red flag if there is a conviction or even if a criminal case is pending. The Punjab National Bank scam is the right occasion for a thorough revamp of the financial services division, which controls public sector behemoths like State Bank of India and Life Insurance Corporation of India.
sachi@theweek.in