The BCCI cadres
In its heyday, BCCI was a multi-national bank in the real sense, though staffed mainly by Pakistanis, Indians and Bangladeshis. On its demise, all the blame reverted to its original home, Pakistan. In a sense, the labelling of BCCI as a Pakistani bank was not incorrect as the founder, Agha Hassan Abedi, and most of its upper hierarchy were Pakistani nationals, belonging mostly to United Bank Limited (UBL) which Abedi had formed in the early 60s, duly sponsored by the industrial family of Saigols.
Abedi’s success relied on his staffing UBL with an excellent cadre of existing banking executives from other banks, following it up by training a whole new generation of managers from bright young men fresh out of the universities. Needless to say, this policy ensured that by the time nationalisation came about in the early 70s, UBL had some of the most dynamic banking professionals in the country. On the opening of BCCI, Abedi repeated his UBL success, raiding UBL (and other banks) for the best and the brightest, thus raising the early BCCI cadres to a new level of excellence, giving the new Bank the backbone for its international success in the 70s.
His progressive policy of choosing the ablest to form the nucleus of the bank notwithstanding, Agha Hassan Abedi had unfortunately resorted to a greyer formula, inherited from his days in Habib Bank Limited and which he continued onto UBL, ending with tragic consequences in BCCI. Working strictly on the Third World pattern of a Client-Patron relationship, UBL had finessed a policy of recruiting the scions of influentials in Pakistan, mainly from the bureaucracy but also from other sectors. This worked to ease the smooth passage of UBL’s various requirements through bureaucracy. This was no different from the practice adopted by western banks in Pakistan, some of their senior hierarchy today in Pakistan and other parts of the world are the sons of senior Pakistani bureaucrats in the 60s. Most of these young men were genuinely deserving and would have been at the top of the class on their own merit but some of them were not of the same quality that UBL had been inducting as banking professionals on its strictly merit-based programme. In overall terms, these “favourites” caused heart-burning among the more deserving, though remaining a minority they did act as a drag on the Bank’s momentum.
Given a wider international canvas, Abedi continued this dual-track policy in the formation and development of BCCI. As much as the policy of selecting the best and brightest contributed towards the spectacular rise of BCCI, the induction of the “favourites” in a greater percentage became a hindrance, tending to greatly retard the progress of the Bank, after all there are not many slots within a dynamic bank to hide the inefficient and the ignorant. However, worst was yet to come! As a third-track policy (and one drawn straight from Mr Hyde’s darker side), Abedi inducted a specialised cadre of non-banking executives to pander to the various personal requirements of his richer Middle Eastern clients. Some of this involved the carrying of large suit-cases full of hard cash around in the proximity of the client on a routine basis, the more seamier side involved ensuring that a stable of young, good looking women were available on an “as required” basis for BCCI’s clients. While it gave the Bank access to the depositing of tremendous funds by appreciative clients, this was an outrageous policy and laid the germs of BCCI’s eventual collapse. When the fundamental principles of morality are violated willingly, it becomes in fact an integral part of the philosophy of a corporate unit, it erodes and destabilizes the whole edifice and structure, nemesis can never be far behind. Unfortunately for BCCI, while other misdemenours paled in comparison, a cacophony of illegalities involving drug money-laundering, atrocious losses in foreign currency dealings, bad loans etc, were seized upon by vested interest to cut down one of the finest creations in the international banking history. The personnel employed for the non-savoury tasks of “public relations” and “entertainment” were specially chosen and were greatly resented by the vast majority of banking professionals within the BCCI. Despite this, some of the PR men rose to high rank in the pecking order, indeed rising to absolute power, that power corrupting absolutely and contributing immensely to the tarnishing of BCCI’s reputation.
BCCI may have had its demise but what about that “great silent majority” of executives of quality above par excellence that it has left in the lurch? Without any doubt, as a group these were the finest banking executives in the world. These superb professionals were highly trained and extremely well educated, aggressive and progressive, they brought a new quality and dimension to the banking service. Since BCCI was an international bank, their level of excellence raised the quality of the banking executives world-wide. Extremely bright, dedicated and hard-working, they set new standards that others in the same profession had to catch up with, this sometimes evoked considerable jealousy, with tragic consequences for them as individuals once their firm base in the banking industry firm collapsed in a welter of accusations. As anyone in the business of management knows, corporate success depends upon superior managers who motivate their staff to perform above and beyond the call of duty, setting personal examples of dedication. The BCCI cadres constantly performed well above the ordinary.
Many people have lost their funds deposited with BCCI, mostly in UK. One feels sorry for the small depositor but then he/she is likely to get back at least a portion of his/her funds after Touche-Ross, the liquidators, finish their onerous task of consolidating all of BCCI’s assets. In many countries, the depositors have not lost a single penny, speaking highly of the professionalism of BCCI management in those countries. In fact, in going through the individual branch balance sheets, almost all the branches of BCCI had operating profits, except those that were involved in foreign currency dealings, e.g. the Luxembourg Branch. Some of the branches are now functioning under different name and management. The operational losses were mainly in the few branches directly looked after by the Head Office in Leadenhall Street and it mostly pertained to expenses incurred other than that related to banking. At this stage “creative accounting” was resorted to by a handful around Abedi and in time it showed up to interested observers. Prima-facie, the depositors should have a fair case for claims against Price Waterhouse & Co for not having set off warning bells earlier.
Quite unfairly, a stigma has become attached to the Resumes of those who served with BCCI. This has resulted in job discrimination abroad for many thousands of ex-BCCI bank executives now looking for work. Because of the Bank’s Pakistani label, this ostracisation has been directed mainly at Pakistanis, many of them expatriates abroad. In a sense they have become refugees in reverse. Tragedy has hit an honest, hard-working professional cadre that should have looked forward at this juncture in their careers to rising further on their merit rather than running from pillar to post looking for a job, in most cases many rungs lower than what they were occupying previously in BCCI’s employment and much below their proven professional competence. In the Third World we are used to merit being ignored frequently due to nepotism and favouritism but this rabid, targeted discrimination for experienced brain-power for no fault of theirs except of guilt by association is difficult to accept.
One feels that Agha Hassan Abedi would probably have done much more to assuage his ex-employees wounds if he had not been physically disabled to the extent that he is, but then those closely allied to him should have risen to the challenge. A social responsibility devolves upon those closely associated with Abedi in the upper hierarchy who have benefited enormously by their BCCI employment. If nothing else, a BCCI Job Placement entity, both in UK and Pakistan, could have coordinated possible employment for those facing misery and hardships in being unceremoniously cast out into the cold for no fault of theirs.
For incurable optimists like us, there is a silver lining in every cloud. The loss of BCCI’s banking potential may be a grievous blow employment-wise to the affected individuals but should be taken as a net Pakistan gain. It is true that a large number of Pakistani expatriates working in BCCI had employment abroad and were making home remittances, thus contributing marginally to the domestic economy, the fact remains that for Pakistan their far great force-multiplier potential of banking skills was more or less lost. The great exodus to BCCI and other western banks had denuded Pakistan of the banking talent at a crucial crossroads in our economic history, the great exodus home will be a tremendous boost to the domestic banking industry, particularly because the government’s liberal economic policies has resulted in a proliferation of private sector retail and investment banking as well as many other financial institutions. Among the many factors required to be injected into a resurgent economy, money is the most significant economic fuel and the financial market needs to be supervised, monitored, managed and developed by experienced money managers. By a queer quirk of fate, we now have access to the best and the brightest among the BCCI cadres. Those who were less than professional among the BCCI cadres will get a short shrift in the banking community, their unsavoury reputation is well-known, one should shed no tears for them. Nature has thus managed its own supreme balancing act, by this amazing coincidence of a booming domestic commercial and industrial sector cross-referencing with the job starvation for BCCI cadres in the international financial market, things have been brought to an even keel. In financial terms, the returning BCCI cadres are a net gain to us, a tremendous asset and potential which must be seen by us as a positive development, to be used productively for the benefit of Pakistan’s economy.
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