Former Chairman SECP defamed the regulator, pushed it to the brink

Former Chairman SECP defamed the regulator, pushed it to the brink

Supreme Court asked to investigate wrongdoing, undo objectionable decisions

Investment climate to remain gloomy if regulator remained controversial

Islamabad April 23

Farida Rashid, President Islamabad Women Chamber of Commerce and Industry (IWCCI) on Tuesday said that former Chairman of SECP defamed the regulator and pushed it to the brink.

Hundreds of people were enrolled against hefty salaries disregarding rules while broker mafia was not only promoted but investigation in the stock market crash in which masses lost billions were hushed up.

Over the years, the financial regulator continued to play on the tune of influential brokers who managed to established banks with the help of stolen funds, she said in a statement.

Farida Rashid said that the close aides of former chairman are still active in the SECP that include an official involved in Rs 82 billion Ogra scam, a commissioner who worked in two insurance companies but made it to the office illegally and a dismissed official.

She said that dismissal of the former chairman is not sufficient unless his wrongdoings are probed and steps undone.

Insiders say that former chairman is now advising powerful broker mafia so that one of his trusted people can become acting chairman who will ignore wrongdoings and protect the mafia, she said.

Such an appointment will ensure that the true report of the stock market crash never see light of the day, she added.

She said that the stock mafia is so much influential that it has barred finance ministry from issuing notification of appointment of a senior commissioner as acting chairman despite approval by the Prime Minister.

Farida Rashid said that Supreme Court while dismissing former chairman observed that SECP should have a chairman as soon as possible and that the method of appointments of commissioners from the private sector be made transparent.

However, both the directives are not acceptable to a Karachi based mafia, she said.

It may be mentioned that the mafia within SECP has been harassing business community and extorting benefits from the fragile insurance sector.

Restoring credibility and integrity of the financial regulator remains a challenge otherwise investment climate in Pakistan will remain gloomy, she warned.