Mockery of Corporate Governance in NCC
I am one of the shareholders of NCC Bank. The bank issued right share on August 7, 2007 which was to be closed on September 10. Many shareholders like me deposited money to get the right shares. But as the NB Group could not deposit the money during the period for share, the closing date was extended first to November then again to December. The NB Group did not pay the money even in the extended period.
This episode clearly shows that the management and board of directors of the bank are manipulating cash and committing fraud only for the benefit of the NB Group. The management and board of directors of a company are the trustees of investors and depositors and they should be abiding by the corporate governance principle of transparency and accountability. But investors like me who had invested in the shares of the bank years have not received any return on our investment so far and this time our money deposited for the right shares is lying with the bank without any opportunity to liquidate the share since the allotment is still pending. This is a violation of the principle of corporate governance
This is a case of gang rape of corporate governance. JB Shrestha and LB Shrestha of the NB Group are the rapists in this case. They did the same with almost all the other organizations under NB Group for their immediate personal benefits. None of the organizations under NB Group is healthy now. Compliance of corporate governance is zero in all these orgnisations. Also the NCC Bank is a victim of their crime. Nepal Rastra Bank has imposed restrictions on NCC Bank in collecting deposits and extending loans due to the past crimes of JB and LB. As a result, the NCC bank is losing its potential. There is nobody to protect the interest of the bank’s depositors and shareholders.
To ensure a safe environment to continue to rape, JB and LB have appointed ‘Heavyweight Bouncers’ like Prithvi Raj Ligal (Ex-Vice Chairman of NPC), Dr. Pushpa Rajkarnikar (a sitting Member of NPC), Narayan Raj Tiwari (Ex-Secretary of the Government) and many others in the Board and RR Bajracharya (President of the Institute of Chartered Accountants of Nepal - ICAN) as the CEO of the bank. The employees of the bank have become the silent spectators of all these happenings. All these hired ‘Heavyweight Bouncers’ are neither the shareholders of the bank nor do they have any other stake in the bank. They are to be fired by JB and LB when the job they are hired for is done. Still they are working as mere servants to JB and LB. This shows intellectual bankruptcy among our professionals.
Blessing in Disguise to Manandhar
Whatever may be the reality, it is widely believed in the market that KB Manandhar has become effectively the Governor of Nepal Rastra Bank because of LB Shrestha. According to this belief, LB is the main player who arranged for dragging Governor Bijaya Nath Bhattarai (suspended) into the present corruption case. That is perhaps the main reason why the NRB in the recent months has been very lenient towards JB and LB.
Humble SEBON
SEBON, the regulator of the stock market, is now headed by a person who is easily influenced by the ‘heavyweight bouncers’ that LB has at his service. Therefore, SEBON too is a silent spectator of the JB-LB duo’s misdeeds.
If these heavyweights have any professional integrity, they have to call the AGM of the Bank immediately and resign in front of the shareholders as these heavyweights have lost all the confidence of the general shareholders.
NRB and SEBON on their part should bring all the miscreants in this episode to the book. Otherwise, the entire banking sector and the stock market will be in shambles soon.
Since NB Group has cheated the shareholders of the organizations under it, the shareholders of NB Bank, NCC Bank, Harisiddhi Brick, Nepal Sri Lanka Merchant Bank and National Hydro have decided to form an ‘Action Committee’ to take action against LB Shrestha and JB Shrestha. Further National Hydro has decided to issue 2:1 right shares. NB Group is the only promoter of National Hydro. Since they could not put money to take the right shares in NCC, will they now put money to take the right shares in National Hydro? Should SEBON approve such a prospectus?
Niranjan
Sanepa
by email
