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banking

UP police subsequently arrested the then that the Joint Parliamentary Committee On an observation of the Committee
Managing Director, AP Mishra, Director (JPC) in its report on “irregularities in about the policies and procedures fol-
Finance, Sudhanshu Dwivedi and for- securities and banking transactions” lowed by the public sector undertakings
mer secretary of the GPF and CPF Trusts have made a number of recommen- in respect of the investments of their
PK Gupta. dations covering the areas mentioned surplus funds, the Government has taken
All India Power Engineers Federation above. These recommendations have note of the fact that the policies and pro-
Chairman Shailendra Dubey, said, “How been considered by the Government and cedures followed by the PSUs in many
can the probe by the UP government the government has decided accordingly. cases were not in conformity with the
hope to unearth the culprits behind this It was noted by the Committee that guidelines and did not satisfy acceptable
conspiracy, especially when the invest- while the Government permitted PSUs norms. The administrative Ministries
ments are linked with Dawood Ibrahim to have banking transactions with for- are requested to take appropriate action
and Iqbal Mirchi’s company and the ED eign banks, it was not monitored proper- to demarcate the responsibilities of the
was grilling DHFL officials?” ly. As such the Government has decided Government in its different Ministries/
that the administrative Ministries deal- Departments and their nominee Direc-
What do the rules say? ing with particular PSU should monitor tors as well as the Board of the Public
How all this has been happening is a adherence to all guidelines issued by the Sector Undertakings, the whole time
mystery because Director, Public Enter- Government. The PSUs should report Directors and its top managers.
prises, the Ministry of Heavy Industries to the administrative Ministry in case The committee also raised the ques-
and Public Enterprises has circulated of inability to comply with particular tion of the duty and responsibility for
recommendations of the Joint Parlia- guidelines and the Ministry will consider ensuring, implementation of guidelines.
mentary Committee amongst all minis- condonation or enforcement by issue of It is the primary responsibility of the
tries/departments. The Director wrote a Presidential directive. PSUs to abide by Governmental guide-
lines. With regard to investment of sur-
plus funds, the Committee has suggested
Congress communication incharge Randeep that the policies should be clear-cut and
transparent.
Surjewala tweets, “Why did Haryana BJP The administrative ministries are also
government deposit over Rs 1,000 crore in desired to lay down guidelines for the
PSU under their control in the matter of
Yes Bank a month ago knowing that it was regular reporting of financial transac-
sinking? Is this figure Rs 3,000 crore?” tions to the Board having regard to the
nature of its business, size of financial
transactions and the level to which the
financial powers have been delegated.
The directions further say that boards
of all PSUs are directed to lay down clear
policies on investment of surplus funds,
establish transparent procedures, review
delegation of authority and prescribe
regular reporting of investments to the
Board. The administrative Ministries
and the Public Enterprises are advised to
keep the decisions of the Government on
these various recommendations of the
JPC in view and take appropriate meas-
ures in accordance with the Government
decision indicated above. The Ministries
may, in turn, issue suitable instructions
to the enterprises for strict compliance.
Interestingly even when clear cut
instructions and rules are in place, the
state entities have been parking funds in
financial institutions that are not 100 per
cent safe for such investments.
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