NEW DELHI: Finance minister Arun Jaitley on Tuesday hit out at auditors and supervisory companies, asking them to "introspect" to keep away from instances of monetary wrongdoing, reported ANI.
"Also what were auditors doing? If both internal and external auditors have looked the other way and failed to detect, then I think CA professionals must introspect. Supervisory agencies also must introspect (about) what are the additional mechanisms they have to put in place," ANI quoted Jaitley as saying.
His comment comes within the backdrop of the Rs 11,300 crore Punjab National Bank (PNB) fraud+ , for which Nirav Modi, his wife, brother, and business spouse Mehul Choksi had been booked by means of the CBI on January 31.
The minister - with out naming the PNB fraud - echoed remarks from both the BJP and Congress on how a rip-off of such magnitude remained hidden for so long as it did.
He also drew attention to the responsibility of the state to "chase those who cheat the banking system."
Jaitley also singled out bank managements for being not able to "utilize authority effectively and in the right manner."
"When authority is given to the managements, then you are expected to utilize authority effectively and in the right manner, and therefore, question for management is, if they were found lacking. On the face of it seems they were," he said.
It is anticipated that ranking companies will downgrade the ranking of PNB, the country's second greatest lender, over the rip-off.
The finance minister said an instance will have to be manufactured from the ones interested by scams as "these kinds of developments have a cost to the country and cost to the tax payers."
(With inputs from companies)
"Also what were auditors doing? If both internal and external auditors have looked the other way and failed to detect, then I think CA professionals must introspect. Supervisory agencies also must introspect (about) what are the additional mechanisms they have to put in place," ANI quoted Jaitley as saying.
His comment comes within the backdrop of the Rs 11,300 crore Punjab National Bank (PNB) fraud+ , for which Nirav Modi, his wife, brother, and business spouse Mehul Choksi had been booked by means of the CBI on January 31.
The minister - with out naming the PNB fraud - echoed remarks from both the BJP and Congress on how a rip-off of such magnitude remained hidden for so long as it did.
He also drew attention to the responsibility of the state to "chase those who cheat the banking system."
Jaitley also singled out bank managements for being not able to "utilize authority effectively and in the right manner."
"When authority is given to the managements, then you are expected to utilize authority effectively and in the right manner, and therefore, question for management is, if they were found lacking. On the face of it seems they were," he said.
It is anticipated that ranking companies will downgrade the ranking of PNB, the country's second greatest lender, over the rip-off.
The finance minister said an instance will have to be manufactured from the ones interested by scams as "these kinds of developments have a cost to the country and cost to the tax payers."
(With inputs from companies)
'Introspect': Arun Jaitley's advice to auditors over PNB scam
!['Introspect': Arun Jaitley's advice to auditors over PNB scam]()
Reviewed by Kailash
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February 20, 2018
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