Cresent Essay

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Pages: 5

Crescent Standard Investment Bank Limited Governance Failure case analysis

Crescent Bank Fraud
The entire board of directors and CEO Anjum Saleem of Crescent Standard investment bank were legally stopped from running their offices on evidences of suspected fraud and irregular accounting. External Auditors had predicted a missing amount of over Rs.6 Billion, apart fromillegal maintenance of parallel accounts, concealment of bank assets, un-authorized massivefunding of group companies, unlawful investments in real estate and stock market, etc. the SECPtook legal action against the companies officers, although much of the actions taken werecriticized as insufficient.


The Crescent Standard Investment Bank Limited (CSIBL)
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• Show cause notices issued by the SECP to the directors, it was admitted that the management of the bank had been guilty of unlawful and fraudulent conduct. It was also pleaded that the board of directors was not aware of such conduct. Chairman and director of the bank Manzur ul Haq said in a letter to the commission that recent events like the unearthing of the J.O. Vohra transaction and the sale of assets of the bank without the board’s prior approval or knowledge “bring me to the sad conclusion that the board at best is irrelevant at the bank • Directors of