The nation is yet again ensnared in scandal, this time involving infamous billionaire diamond dealers. To summarize, these audacious businessmen were able to hoodwink India’s lax public bank systems leading to the misappropriation of close to $1 billion dollars. Before the scam came to light, the accused brazenly fled the country leaving us, the citizens of this country to deal with the mess they have created.
All this comes in the midst of a massive effort by the government to recapitalize floundering Public Sector Banks. So, the government in effect plugs the leaks in the creaky system without addressing the problems that caused the fissure. Granted, the issue of NPAs is a legacy inherited by this government. But what have they really done to address it beyond railing against its predecessors? Instead of nudging India away from public sector banks, we continue to kick the can down the endless road. Laws to enhance risk controls within banks or stricter lending checks are almost just as vital as injecting state bank coffers with much-needed juice.
There is a case to be made for the continuing existence of public sector banks, that is of course that they are likely to serve those citizens’ that are historically shut out of the formalized banking sector. While we have seen increasing evidence of this through various financial inclusion schemes such as Jan Dhan Yojana. And yet, I find it hard to fathom the fact that the biggest beneficiaries of these banks and also the biggest abusers include some of the shadiest business moguls of our country. For far too long, the insidious crony capitalist system has taken the Indian exchequer for a ride and profited from our blissful ignorance.
The absconders recently wrote against the “media frenzy” that “destroyed their brand”, written from the comforts of a luxurious five-star hotel. What a sad life they must be living. I also ask them in return, if you are so confident of your innocence, why flee the country in a shroud of secrecy? Come back, and negotiate your liabilities.
Secondly, what responsibility do they have to their own employees? Surely, they owe innocent and helpless workers a decent severance package as they navigate the uncertainty of this scandal. Instead, they were coldly informed to “look for other career opportunities”.
Lastly, thank you for destroying whatever little faith we had in our own banking systems. While we lambast politicians for handing out loan waivers to hardworking financially bankrupt farmers, we often forget them to keep the morally bankrupt rich in check.
To those who choose a life in exile, I finally request, work with the banks and government to repair the damage you have wrecked in this great country. You can run away from the world and its cousin, but not your own conscience.