7. Founder & COO of MBL
• Mr. Younus Habib
• Banking clerk in HBL
• Suspension due to involvement in
unethical business practices
• Foundation of MBL with the help of
political allies
8. Founder & COO of MBL
• Mr. Younus Habib
• Drained out 5 billion
• Involvement in Dollar Bearer Certificate
fraud
• 2.2 Billion fine
• 19 years of rigorous imprisonment
9. MEHRAN GATE
• Buying loyalties of politicians
• Funding for operations
• Involvement in secret movement
against the sitting government
• SBP’s lack of independence
10. ACCUSATIONS
• Misappropriated around five billion
rupees
• Transfer Rs 499 million to 39 account
holders.
• Bank’s COO was also convicted in
DBC’s fraud case.
• Advancing loans against hundreds of
fake accounts
• Rs 130 crore stuck up in the bank
11. ACCUSATIONS
• Chief of army staff received Rs 24 crore as
donation from COO.
• Large sums had been drained off to 39
fabricated parties
• Made a payment to chief of Army staff which
was later transferred
• New Chief Javed Ashraf Qazi of a premier
intelligence agency.
• Mehran Bank was unable to return the money
12. ACCUSATIONS
• COO was also charged for being
involved in the sale of land to the
President of Pakistan for Rs 15 million.
13. FRAUD WITH STATE BANK OF
PAKISTAN
• Sold DBCs of 36.7 million
• Out of which he gave
–20 million to intelligence
– Remaining spent on pressing obligations
14. FRAUD WITH STATE BANK OF
PAKISTAN
• Proceeds from the DBCs had to be
deposited within 72 hours of the sale
• Arrested on a complaint by the SBP for
committing misappropriation in DBCs
15. MERGER OF MEHRAN BANK
• Merger of MBL & NBP in 1995
• Provisions for MBL liabilities
• Appeal by shareholders
• Petition against MBL merger
16. ANALYSIS OF POOR CG
PRACTICES
• Role of management:
– Enjoyed senior management position
– Corruption & mismanagement of resources
– Double fraud
– Extra curricular banking activities
– Government accounts support
17. ANALYSIS OF POOR CG
PRACTICES
• Role of regulators:
– Minimum role
– SBP kept in dark
– SBP in vulnerable position
– Control of power, authority and money
– Involvement of higher players
18. ANALYSIS OF POOR CG
PRACTICES
• Role of auditors:
– Weak corporate governance
– Lack of independence
• Ignorant
• Beneficiary
19. ANALYSIS OF POOR CG
PRACTICES
• Rights of minority shareholders:
– Investment by small shareholders
– Share holder’s protection
– Investors did not get any penny
– Scape goat
22. CONSEQUENCES
• High public figures exposed
• Shadowed functioning of financial
institutions
• Fatal outcomes for corporate sector
23. SURPRIZING CASH RECOVERY
• COO’s agreement with NBP
• Role of NAB
• Successful cash recovery of 1.6 billion
• Benami property sold to National
Logistic Cell
24. CONCLUSION
• Poor control of state institution
• Misuse of public money by influential
people
• Appointment of 5 independent judges
