Bank clarifies stance on alleged fraud, says initiated inquiry against ex-employee

In response to The Express Tribune’s story titled ‘FIA unearths bank fraud including counterfeiting’, published on February 15, 2023, the commercial bank clarified that it had initiated an inquiry against its former branch manager.

“In 2022, as a result of an internal whistle blow against an ex-Branch Manager, the Bank had initiated an inquiry against the BM as at that time there was no complaint from the customers. The irregularities committed by the ex-BM were shared with the complainants. However, at that time, the customers owned all the discrepant transactions and their personal relationship with the ex-BM. They also produced a Loan Agreement dated 21.01.2022 that was also got confirmed from Mr. Fahad Butt on recorded phone call,” the bank maintained.

It further stated that, “The Bank recovered PKR 20.5 Million from the ex-employee on account of discrepant transactions and handed over to the customers through three pay orders. The customers also executed an indemnity in favour of the Bank on 03.06.2022 while acknowledging the same as full and final settlement and undertook as follows: 5. In Consideration of the payment of the above stated amount, we undertake and confirm that we shall not have any further claim, action, demand of whatsoever nature against the Bank either directly or indirectly related to the above full and final settlement.”

“The then Branch Manager was terminated from the Bank’s employment and customers were intimated during their visits to the Branch. Their account balances were confirmed to them through written letters.”

The bank further maintained that, “However, the complainants did not raise any objection at that time. After almost one and half year after signing of the undertaking/indemnity, the customers have approached the Bank claiming embezzlement without providing details of any disputed transactions despite repeated requests. Initial inquiry into the matter revealed personal and business relations between the complainant and the ex-BM as they are co-owners in a company namely, M/s Cartswing (Pvt) Limited as per the SECP record. Bank is fully cooperating with FIA and the complainants and if any legitimate claim is established, the Bank shall treat it accordingly.”