NDB noose hangs over whistleblower CFO despite serious allegations

In a shocking development, NDB is on the verge of firing its Chief Financial Officer (CFO) for blowing the whistle late, though he did so within the stipulated timeframe.

Group CFO Faizan Ozman in a memo sent to the NDB Board in January had alleged serious misconduct by a senior management personnel over a year ago. The revelation had come two months after the high senior management member concerned had left the bank. 

In a show cause notice, the NDB Chairman maintained that the CFO had deliberately withheld information from the Board and despite the gravity of the allegation he had blown the whistle late. However, insiders maintained that the CFO had complied with NDB’s internal whistleblowing policy which states an employee can do so within six months of a person (against whom the charges are made) leaving the bank. 

As per the NDB’s whistleblowing policy: “The concerns of misconduct/wrongdoing can be raised against any person or persons currently employed in the bank including any Director. Concern could also be raised against any person or persons within six months from his/her resignation.” 

The CFO has been suspended by the NDB Board pending an inquiry with the matter fixed for arbitration. Insiders, including NDB Employees Association members, are up in arms against the injustice of the management and the course followed in dealing with this instance of whistleblowing, the Daily FT learns. 

What makes the action more of a mockery is that the NDB Board had taken nearly two months to respond to the CFO’s memo but had been swift in punishing him without initiating a proper probe into the matters he had highlighted.

Good governance activists maintained that instead of promoting whistleblowing NDB’s conduct is appalling. They also said that if the CFO was fired for whistleblowing or serious allegations were not probed further then it would be a huge indictment on the NDB Board which has several members who served even during the time the senior management member concerned held top office. 

NDB’s whistleblowing policy is designed to encourage employees to report alleged acts of malpractice or misconduct to ensure that all allegations are considered for investigation and suitable action taken where necessary. 

The whistleblower is protected against adverse action (discharge, demotion, suspension, harassment or other forms of discrimination) for raising allegations of misconduct or malpractice. If the concerns are raised in good faith, an employee may be protected even if the allegations are proven to be false or unsubstantiated. 

However, frivolous or malicious allegations have the potential to seriously damage the reputation of the bank and its staff. For this reason any such allegation will be treated seriously.

Insiders alleged that NDB Board actions clearly contradict the stated policy on whistleblowing.

According to NDB’s Annual Report, Group CFO counts over 21 years of experience in banking in the disciplines of risk management, remedial management, corporate banking, operations and finance.

His prior experiences have been at leading international banks such as the Citigroup and Standard Chartered Bank where he has held key positions and gained vast experience in multiple countries.

Ozman joined the NDB Bank in 2011, prior to which he was the Chief Risk Officer/Head of

Compliance at Seylan Bank PLC. He is a Fellow of the Chartered Institute of Management Accountants, (FCMA) UK and a Chartered Global Management Accountant (CGMA). He is also a member of the Certified Public Accountants of Australia and Certified Management Accountants Australia with a Bachelor of Commerce degree from the University of Sri Jayewardenepura.

Board of Directors of NDB are Ananda Athukorala (Chairman), Ashok Pathirage (Deputy Chairman), Trevine Jayasekara, Kimarli Fernando, D.S.P. Wikramanayake, Indrani Sugathadasa, Dinal Phillips, Kavan Ratnayake and A. Harasagama.