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KARACHI: In a blatant violation of government instructions, University of Karachi has been conducting business through private banks instead of Sindh Bank, the practice inflicted financial harm on the provincial government and institutions, unearthed MM News investigation.
Contrary to government orders, University of Karachi had withdrawn Rs.320 million received in June from Sindh Bank savings account and transferred it to current accounts of three private banks in the name of utilization. Rs.220 million were place in United Bank, Rs.100 million in National Bank and Rs.50 million in Habib Bank Limited.
Post Eighteenth Amendment of the constitution of Pakistan, Government of Sindh asked government organizations to conduct their transactions through Sindh Bank. Budget allocation and special grant from the Accountant General Sindh(AGS) shall be issued and utilized via Sindh Bank.
According to the documents, on June 13, the AGS transferred Rs.316.7 million in the Sind Bank’s Karachi University Admin Branch’s account; PK78SIND0003734868282000. On June 17, Rs.22 million was transferred to National bank from ID No – 36142950, Rs.20 million to Habib Bank Ltd and Rs.220 million to United Bank account from ID – No 36142951.
Surprisingly, these transferred being made from savings account to the current account in the name of utilization, even though the savings account can also be used for utilization.
It is pertinent to mention here that, after the arrival of the present administration, private banks being used for fee collection of higher education programs such as M.Phil and Ph.D. University Admin used UBL instead of Sindh Bank for fee collection.
On March 29, the CEO of Sindh Bank Imran Samad along with his officers met the Interim Vice Chancellor and his administration to sort out the said issues. However, the issues still persist.
A letter was issued on September 26, 2019 from Secretary Universities and Boards to the Vice Chancellor, in which it was said that all the funds in the private banks shall immediately be transferred to the Sindh Bank Karachi University branch and all the transactions be done through Sindh Bank.
“Any kind of grant including single line transfer, aid and budget allocation shall be kept only in Sindh Bank,” A statement issued by the Administrative Secretary of the Principal Account informing the university admin of Sindh Cabinet’s decision regarding the matter.
The process of favoring private banks at Karachi University is still going on. In the light of the 2020 decision of the Syndicate of the University of Karachi, the old agreements signed with the UBL, National Bank and HBL were to be terminated and new agreements were to be negotiated. Director Finance Tariq Kaleem instructed all the banks to sign new agreements. However, the present administration ignored the instructions and still collects semester, admission and other fees through private banks.
University of Karachi teachers’ funds have also been given to private banks. Rs. 100 million of provident funds were placed for 8 years in UBL, which became mature in June 2021. UBL has paid the university a profit of 9.5%.
On May 12, 2016, UBL’s Operations Manager wrote a letter to the Director Finance of The University of Karachi and offered 14.89% for keeping Provident fund in the bank for 8 years, and 17.39% for Rs.100 million. However, only 9.5% profits had been paid in June 2021. Director Finance Tariq Kaleem has not taken any action against the bank even though a whole year had gone by.
Musharraf, the database administrator in charge of Director Finance, has also not lagged behind in awarding United Bank Limited. The fee tracking cell has instructed the departments to charge manual fees instead of online, for which the vouchers are issued. The manual fee is being collected in the same private bank while the fees are being collected in the current account of this bank.
It should be noted that private banks’ operations manager and subordinate employees receive commission and bonuses from the head office for bringing maximum business to current accounts over savings accounts. Hence, The University of Karachi with 40,000 clients being seen a cash cow for these banks.
Documentary evidence in this regard has been sent to the concerned officials of NAB including FIA Banking Circle for investigation and inquiry, according to MM news sources.
In this regard, Acting Registrar Dr. Maqsood Ansari, when contacted, said that the number of banks used to collect student fees is not that high as students should be able to deposit fees in any bank near their homes. He further said that most of the funds of the university are deposited in the National Bank and Sindh Bank that are available for salaries. However further details could be attained from the Director Finance. Director Finance Tariq Kaleem did not receive the call when contacted. Director Finance and concerned banks viewpoint will be published upon obtained.
