The country's central bank is turning a blind eye to corporate governance flaws in Sanima Bank, despite calling it out in its previous reports, it has been revealed.
The central bank, in its report for the bank two years ago, had said that the bank's big investors, board members and high-ranking officials facilitated big investments in other companies they are associated with.
However, two years after the report, the central bank is yet to take action against the bank, Jana Astha reports. According to the report, the central bank hasn't sent a monitoring mission in the past two years, despite the previous report's flags.
The NRB report had said that board members, investors and high-level officials of the bank invested in Sanima Hydropower, Sanima Mai Hydropower and Sanima Life Insurance companies in a possible conflict of interest. It was also found that cash was exchanged between board members, the head of the legal division and other officials.
The central bank has, however, remained mum on the issue. Board members of the central bank agree that action should have been taken against the bank based on the report.
Sanima Bank's CEO Bhuwan Dahal dismissed the report saying that it doesn't cite any provisions mentioned in the central bank's unified directives. He told Jana Astha that such reports don't have any standing.