Is the fate of probe body report sealed?
Wednesday, 4 May 2011
Shamsul Huq Zahid
Finance Minister AMA Muhith last Saturday released, officially, the full report of the four-member probe committee on recent share scam, belying speculations that he would not. Despite the fact the country's agile media published the report in full soon after it was handed over to the finance minister by the probe body, the release of the same officially does carry some significance. The report is now acknowledged by the government. And any dithering on taking appropriate actions in the light of the findings of the report would surely be a matter of public scrutiny. The finance minister deserves kudos for finally releasing in full the report that has triggered a lot of controversy, deliberate or otherwise. He does deserve appreciation because he could successfully withstand pressure from the behind-the-scene players who did not want the government to own the report. However, some cold water has been poured on enthusiasts who expected actions against powerful and influential stock market manipulators when it was described the probe body report to be based on 'assumptions rather than facts'. It would be too much to expect any action against manipulators in line with the findings of the probe body when the content of the report is not found to be sufficient enough to bring allegations of foul play against share traders. However, the government at the same breath has already acted upon some recommendations of the probe body and measures are underway in relation to some other recommendations. If the findings of the probe committee are based on assumptions, the report itself is likely to lose its credibility and the government would then have no strong reason to implement the recommendations, partially or fully. The finance minister while releasing the probe body report at a press conference said the government would make further investigation into the share market scam. He disclosed that a taskforce would be formed shortly to 'evaluate the recommendations of the probe committee and look after the restructuring of the capital market'. He did not mention about further probe into manipulations that were deftly planned and executed by some skilled hands taking advantage of legal lacunae and indifference on the part of all concerned regulators. Though there should be no reason for demonstrating sympathy for the top guns of the Securities and Exchange Commission (SEC) who would soon be getting the axe, one might get the impression that they have been made 'soft' targets while many other crooks have managed to get away with their crimes. If the government has decided not to take actions against anyone in accordance with assumption-based findings of the probe committee, then some critics may point out that why the SEC people should not get the benefit of doubt. There is no denying that the probe body could rightly identify some of the areas, if not all, that the manipulators used to siphon off money from the stock market but, maybe, for time constraints or lack of expertise it could not dig deep into the alleged irregularities. Moreover, a few observations made in the report have created scopes for the vested quarters to raise questions about the credibility of the report and influence official decisions in their favour. In the meanwhile, the market showed no sings of recovery following the publication of the probe body report in full and pending actions against the top officials of the SEC. During the last couple of days, the benchmark index of the Dhaka Stock Exchange (DSE) shed more than 175 points with daily transaction going below Tk. 5.0 billion. Most investors are by now sceptical about the purpose of the share scam probe body report. When the taskforce as has been promised, is formed, all attention would be diverted to its activities. The elements, who are perceived to be share market crooks, would find out every opportunity to escape any action against their foul-game as it had happened in the case of 1996 bubble bust. The manipulators would have to wait, maybe, for some more time to make yet another scheme and implement it. zahidmar10@gmail.com
Finance Minister AMA Muhith last Saturday released, officially, the full report of the four-member probe committee on recent share scam, belying speculations that he would not. Despite the fact the country's agile media published the report in full soon after it was handed over to the finance minister by the probe body, the release of the same officially does carry some significance. The report is now acknowledged by the government. And any dithering on taking appropriate actions in the light of the findings of the report would surely be a matter of public scrutiny. The finance minister deserves kudos for finally releasing in full the report that has triggered a lot of controversy, deliberate or otherwise. He does deserve appreciation because he could successfully withstand pressure from the behind-the-scene players who did not want the government to own the report. However, some cold water has been poured on enthusiasts who expected actions against powerful and influential stock market manipulators when it was described the probe body report to be based on 'assumptions rather than facts'. It would be too much to expect any action against manipulators in line with the findings of the probe body when the content of the report is not found to be sufficient enough to bring allegations of foul play against share traders. However, the government at the same breath has already acted upon some recommendations of the probe body and measures are underway in relation to some other recommendations. If the findings of the probe committee are based on assumptions, the report itself is likely to lose its credibility and the government would then have no strong reason to implement the recommendations, partially or fully. The finance minister while releasing the probe body report at a press conference said the government would make further investigation into the share market scam. He disclosed that a taskforce would be formed shortly to 'evaluate the recommendations of the probe committee and look after the restructuring of the capital market'. He did not mention about further probe into manipulations that were deftly planned and executed by some skilled hands taking advantage of legal lacunae and indifference on the part of all concerned regulators. Though there should be no reason for demonstrating sympathy for the top guns of the Securities and Exchange Commission (SEC) who would soon be getting the axe, one might get the impression that they have been made 'soft' targets while many other crooks have managed to get away with their crimes. If the government has decided not to take actions against anyone in accordance with assumption-based findings of the probe committee, then some critics may point out that why the SEC people should not get the benefit of doubt. There is no denying that the probe body could rightly identify some of the areas, if not all, that the manipulators used to siphon off money from the stock market but, maybe, for time constraints or lack of expertise it could not dig deep into the alleged irregularities. Moreover, a few observations made in the report have created scopes for the vested quarters to raise questions about the credibility of the report and influence official decisions in their favour. In the meanwhile, the market showed no sings of recovery following the publication of the probe body report in full and pending actions against the top officials of the SEC. During the last couple of days, the benchmark index of the Dhaka Stock Exchange (DSE) shed more than 175 points with daily transaction going below Tk. 5.0 billion. Most investors are by now sceptical about the purpose of the share scam probe body report. When the taskforce as has been promised, is formed, all attention would be diverted to its activities. The elements, who are perceived to be share market crooks, would find out every opportunity to escape any action against their foul-game as it had happened in the case of 1996 bubble bust. The manipulators would have to wait, maybe, for some more time to make yet another scheme and implement it. zahidmar10@gmail.com