DailyPost 2324
DO WE UNDERSTAND THE FINANCIAL COMPLEXITY?
The first question is do powers the be, and there are quite a few of them understand the financial complexity of the nation today, independent of each other, or together. If they do, in whichever permutation or combination, do they have wherewithal to direct the banking, financial services, stock market, its connection with the international rating and lending agencies, in the interest of the nation. The first and foremost challenge is that every agency, ministry and organisation concerned with this sector works in silos, but they want the world to believe that they are working in unison and delivering.
Do we have a solution blueprint of any of the grave financial issues plaguing the nation? Solution blueprint means a professional & a technical document with states the problem to the minutest detail, to the last nitty gritty and a solution arrived at, stated with similar detailing clearly stating timelines, impact anticipated, validation required, with resources of the type required made available. Rudderless in practice and visionary in proclamation cannot take us anywhere. Never ever the financial situation of the country been handled by catching its tail expecting a positive impact and it not going to happen now this time round too.
We are a non-research country and that being case it is very difficult to understand the financial complexity of the nation. Research in India happens after the financial tragedy has happened and that too in the crudest style and learning no lessons out of it. No documented legally mandated corrections put in practice to avoid a similar eventuality in future. Given the nature today’s financial world, tech and legality have got very deeply intertwined into it. How many of the financial stakeholders in the country had even heard of Hindenburg till the time it hit is like a bolt from the blue and everyone started running helter-skelter.
Leave proactive and robust operation actions, we don’t have a system as to who would react / respond and to what effect? The chain of command and priority remains undecided. Even if all decide to remain silent, the country has to bear that with a glee. Where criminal action takes precedence or financial controls post-mortem has to be done first, everything remains unknown? Nothing is codified to handle the crisis best. What will a JPC do in complex financial issues? We have the experience of JPCs in the past too. NPA of banks, general quality of promotors, MCA’s nature of controls, ever increasing number of cases where forensic audit has to be forced upon, co-location cases, Himalayan Yogi ex.NSC Chief scandal, ICICI-Videocon founder saga and endless others are taking us on the road to financial nemesis.
TIME TO GET INTO AN EXPERTISE BASED MODEL OF FINANCIAL CHECKS AND CONTROLS, FAILING WHICH WE FAIL THE NATION.
Sanjay Sahay