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| India-Pakistan |
| SECP top guns give themselves millions in bonuses |
| 2009-07-31 |
| [The News (Pak)] The Senate was told on Thursday that three top guns of the Securities and Exchange Commission of Pakistan (SECP) had quietly pocketed about Rs 11.5 million as "performance" bonuses during last two years after giving certificates to themselves that they were the best in the business of securities. Who do these guys think they are, Citibank? The Upper House was told that these amounts were paid to the three top guns after making changes in the rules in the same year of payment of honorarium (2007-2008) to enable them to pocket the money by giving it a legal cover. The information about the distribution of bonuses and honorarium among themselves by these officials was placed in the House by Minister of State for Finance Ms Hina Rabbani Khar in a reply to a question put by Senator Saleem Saifullah Khan. Saifullah Khan had sought the details of the amounts of honorarium/bonuses granted to the chairman and other members of the SECP during the last two years indicating also the basis on which it was granted. The senator had also asked whether it is a fact that the said amount was granted in violation of the prescribed rules. Minister Hina Khar confirmed the payment of a huge bonus and honorarium to the three top guns who distributed the money among themselves. One for you, one for me. One for you, One for me. Hey! I'm a top gun! You can't fool me like that! Oh, sorry. One for you, one for YOU, one for me. The House was told that in the year 2007-2008, a sum of Rs 1.7 million was paid to the then SECP Chairman Raziur Rehman Khan on account of performance bonus (Rs1.1 million) and Rs 584,010 (guarantees bonus). The then Commissioner Salman Ali Sheikh (and presently chairman SECP) also pocketed Rs1.7 million on similar account followed by Rashid I Malik who was also given Rs 1.7 million. In the following financial year, these three top guns once again sat together and decided to give performance bonuses to themselves. This time the decision was taken to raise the amount of bonuses, perhaps keeping the inflation rate in view. The then chairman Razi got Rs1.8 million, Salman Ali Sheikh Rs1.8 million. However, the third was not given a raise over the previous year as he got Rs1.7 million. One official source told The News this established an important aspect that only three top guns were competent and the rest of the employees working in the SECP were probably not upto the mark to even earn some crumbs of this bonus feast. The House was told that actually a rule was used by the top SECP officials to pay themselves heavy bonuses. The minister said that Chapter 3 of HR Hand Book 2007 (service rules prescribed with the approval of the securities and exchange policy board) provides that all officers governed under the HR hand book shall be allowed one gross salary as fixed bonus every year and variable performance bonus on the rate approved by the SECP policy board (chairman being a member) on the recommendation of the commission. Ms Khar, however, gave laughable excuse to the Upper House that no amount was granted in terms of the permissible rules. The amount was bonus and was granted to the commissioners and the chairman. |
| Posted by:Fred |