Significant gaps in hiring 2 directors at PTC arm: KPMG

Significant gaps in hiring 2 directors at PTC arm: KPMG

NEW DELHI: A report by KPMG has pointed to “significant gaps” in the hiring of director finance and director operations at PTC Financial Services and has questioned the selection process.
The firm has shared a draft report to PTC, the parent of PTC Financial Services, where three independent directors had resigned a few months ago, alleging lapses in corporate governance. At the heart of the controversy are accusations around PTC Financial Services MD & CEO Pawan Singh blocking the appointment of NTPC executive Ratnesh as director finance.
The KPMG report has, however, questioned the entire process to select the two key management personnel, and noted that the NBFC chose to ignore industry practice from the beginning. It said Singh’s suggestion to look for individuals from the market were not accepted and alleged that the entire process was carried out in a “hushed manner with unwarranted secrecy and speed”, with no age relaxation made even for internal candidates. PTC acting CMD Rajib Mishra didn’t respond to a questionnaire. The report said there was absence of arm’s length between the group and the NBFC, despite notices from the RBI as a senior PTC executive was involved with the process.
Last year, PTC CMD Dipak Amitabh had resigned from the company, citing personal reasons. Further, it said the review of documents and the absence of certain papers related to evaluation of candidates suggested there were gaps due to the lack of any quantitative evaluation and scoring checklist. It sought to exonerate Singh from the accusations, saying that no remarks were provided to the board or the HR department, and the MD seemed to be unaware about the scoring and appraisal of the ability of the candidates.
Based on discussions with Singh, KPMG seems to have concluded that the selection was done without the consent of the reporting manager. It has also said that the appointment of the two directors was to be done on an “absorption basis”. But the NTPC executive came to join PFS on a lien from his parent organisation and subsequently went back due to the controversy surrounding his appointment.

Indianshri

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