There had been some rumor that all was not sound and that the venture banking regulator, Securities and Exchange Commission of Pakistan (SECP), had send a team to explore the affairs of the bank. Since the primary shareholders were business or individuals of the well known business group referred to as the Crescent Group, there was incredible interest in the CSIBL affairs by political and financial circles as well.
The case describes the numerous kinds of entities that were unified to form the CSIBL, chiefly to protect the stakeholders by creating an entity with a large capitalization. The bank had reported in its annual rumors that all the inner control mechanisms for good government stipulated by the SECP were in place and the auditors (internal and external) had reported that these were adequate. Yet, when subjected to an examination, it was disclosed the internal direction was involved in a number of acts of misrepresentation and disguise. The case focus on the faults in the structure of the corporate governance regime in Pakistan. The fact remains that no quantity of internal or outside tests can cease the internal direction from colluding to perpetuate a fraud.
PUBLICATION DATE: October 09, 2008 PRODUCT #: 908M68-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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