Immunity to SBP officials proposed in legal proceedings

Immunity to SBP officials proposed in legal proceedings

ISLAMABAD: The officials of State Bank of Pakistan (SBP) to be given immunity against any legal suit and prosecution for any act of commission or omission done in exercise of any powers.

According to proposed amendments to the State Bank of Pakistan Act, 1956 issued by the finance ministry on Thursday, “No suit, prosecution or any other legal proceeding including for damages shall lie against the SBP, board of directors of member thereof, governor, deputy governors, member of any board committee and monetary policy committee, officers and employees of the central bank for any act of commission or omission done in exercise or performance of any functions, power or duty conferred or imposed by or under this Act upon such persons or any rules and regulations made thereunder or any legislation administered by the SBP unless such act is done in bad faith and with mala fide intent.”

It is further proposed the governor, deputy governors, directors, members of any board committee and monetary policy committee, officers and employees of the bank shall not be liable in their personal capacity for any act of commission or omission done in their official capacity in good faith and in case of any such proceedings as mentioned in sub-section (1), they shall be indemnified by the bank which shall bear all the expenses thereof, till final decision of the case.

Another immunity proposed to SBP officials, which stated: :”No action, inquiry, investigation or proceedings shall be taken by National Accountability Bureau (NAB), Federal Investigation Agency (FIA) or provincial investigation agency, bureau, authority or institution by whatever name called without prior consent of the board of directors of the SBP.”

Whereas, the present law says: “Every (person in service) of the bank shall be deemed to be a public servant within the meaning of Section of the Pakistan Penal Code.”

The proposed amendments also suggested increasing the tenure of SBP governor to five years from existing three years.

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