Senate panel warns of issuing banks’ warrants

ISLAMABAD, March 12: Amid government pressure to halt the investigation, a parliamentary panel has decided, in principle, to issue warrants of three international banks that were hired to float $500 million worth of Eurobonds last year as they are reluctant to appear before the committee.
The Senate Standing Committee on Finance that met on Friday gave another chance to the three banks to turn up in the meeting or else their warrants would be issued, said a committee member after in-camera deliberations.
Govt faces humiliation over CIB Bill again
The panel is investigating whether Pakistani nationals bought the Eurobonds floated in September last year.
In its previous meeting, the committee had summoned representatives of Citibank, Deutsche Bank and Standard Chartered Bank through the Ministry of Finance in the next huddle.
Finance Minister Ishaq Dar was not present. Of the 36 meetings held so far, the minister did not participate in 24 and the committee decided to raise the issue in the Senate, said Senator Saleem Mandviwalla, Chairman of the panel, after the meeting.
The panel decided to give a last chance to the three banks. “We did not want to be harsh but will proceed firmly as per rules and procedures,” said a member.
The standing committee suspects that the money invested by foreigners had actually flown from Pakistan.
KASB Bank’s merger: Senators demand probe
“There is a lot of pressure from the government to stop the inquiry but we will take it to conclusion,” said Mandviwalla.
After the finance ministry, the State Bank of Pakistan (SBP) on Friday also opposed the move to summon representatives of the banks, said panel members on condition of anonymity. – AFP