Chartered accountants' group says awaiting fraud information from PNB

Chartered accountants' apex body ICAI on Friday said it is waiting for information from Punjab National Bank officials to understand the "systemic loopholes" regarding the Rs 127 billion fraud.

In the wake of the scam, the biggest in the country's banking sector, the ICAI had set up a high powered group to study the issues in PNB matter and suggest remedial measures.

The group is waiting for required information from Punjab National Bank officials to find out the systemic loopholes, the Institute of Chartered Accountants of India (ICAI) said in a release.

"... it is worthwhile to note that the group recommendations are dependent on availability of documents/ information," it added.

According to the release, the group has written to various officials of the bank including the chairman of the Audit Committee and a member to provide relevant information in the matter so as to help the group understand the systemic issues.

The role of auditors has also come under the scanner in the scam.

Seeking details about the fraud, the ICAI has already written to the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Securities and Exchange Board of India.

"Ordinarily concurrent audit in bank is carried out by independent firm of chartered accountants. As per current system of appointment of auditors in PNB, Internal and Concurrent Audit was carried out by the PNB officials.

"Though number of government agencies are trying to identify the culprit, yet it seems that prima facie the fraud is done by collusion of many persons, inside and outside the system," the release said.