A serious fight is afoot between some board members and Vice-Chairman of the Assam State Cooperative Bank. The issue in question is the appointment of a new Managing Director in the bank. The directors have sought the intervention of the bank Chairman Himanta Biswa who at present is the minister in Sarbananda Sonowal’s cabinet and has little time to focus on the co-op bank’s affairs.
Due to his tight schedule, the Minister has given the charge of Chairman to Biswajit Phukan, Vice-Chairman of the bank. Most of the BoD members are opposed to Phukan and allege that he is ruining the bank for his narrow interests.
The board members complain that the matter of appointment of new MD was never discussed in the board meeting as well no resolution was passed to this effect.
The disgruntled Directors have, meanwhile apprised the Chairman of the ongoing controversy but the busy minister has no time to react. Stonewalled, they have approached Indian Cooperative in order to highlight the alleged anomaly being followed in the appointment of the new MD.
They have sent Indian Cooperative a copy of the letter written by one of the board members to the Chairman, listing the issues that plague them. It reads, “I am surprised to know that a New MD has been appointed w.e.f 31.01.21. In this context I couldn’t remember the discussion in the BoD meeting and subsequent resolution to this effect. I think it is not fair and judicious to keep us in the dark while making such major decisions for the bank which ultimately reflect in the financial health as well as the standard practices of the bank.”
The letter goes on “I therefore oppose such an undemocratic move on the part of the chairman in charge and request our honorable chairman sir to intervene in the matter considering the future consequences”.
The directors claim that the appointment of a new MD is against the bye laws of the bank. We also came to know that some of the BOD members have not approved Chairman I/C resolution by circulation for appointment of a new MD by publishing an advertisement in newspapers & have called for a Board meeting to discuss the serious issue. No board meeting is called yet on the appointment of a new MD and to replace the present MD, they said.
Their argument is that it is not understood why the present MD Shashank Shastri needs to be changed, who has been credited for turning the bank around from the losses.
It is being said that Dombru Saikia will take over the charge as a new MD on 28th January 2021. He is an official from Meghalaya State Cooperative Bank. The working experience, qualification & competency of Saikia is not under Fit & Proper Criteria” of the RBI for selection of CEO of the Bank, said directors of the bank.
Talking to Indian Cooperative one of the senior co-operators from Assam said, “The Present MD Shashank Shastri failed to make necessary coordination between directors. His failure is also due to the fact that the management sees the bank as their personal fiefdom”.
Indian Cooperative is not in a position to compare the competence of the two MDs-outgoing or the one to take over. Efforts to talk to the opposite camp– Vice Chairman Biswajit Phukan and Chairman Himanta Biswa could not succeed.