ORACLE TAKES ASKARI BANK PAKISTAN TO THE CLEANERS

Flex cube core banking system was bought without tendering about three years back.
This contract was signed by the Incumbent president of Askari Bank Mr. M. R. Mehkari for purchase of this system.

The purchase of this system when it came for approval in the B.O.D meeting about three years back was strongly apposed by Mr. Afzal Munif, at that time a minority director of Askari bank, but was over ruled by majority vote of YES MEN of B.O.D as all timely joy riders are sitting on the board of Askari Bank.

The Dissenting note of Mr. Afzal Munif was not recorded, but he is ready to testify to this as this was bought against great opposition.

This system with some other modules was purchased in connivance with Lt. Gen ® Zarar Azeem at that time MD Army Welfare Trust & Nauman Bashir at a cost of 6 Million US dollars plus with consultancy implementation and training and has gone above 10 Millions US dollars.
Kick backs have been pocketed by the above and Askari Bank has been left with the dirty end of the stick.

The question arises when UNI-Bank system was available at no cost to the Bank and could have been upgraded with the additional development by in house software experts which was readily available at that time. Why this system was purchased in the first place?
Compare this system with the Islamic banking system of Askari Bank which is working very well and has just costed a fraction of what was paid for this flex cube.

Last 2 years annual report mentions that two branches went online with this new IT system that is F-8 and Blue Area branch Islamabad. And now this year 2011 report states that 19 branches are now on line.

On detail inspection and scrutiny of these branches it was found Daily Day end, month end, are not properly running, Unbalanced dummy’s inputs are used to balance the banks branch statements which is not reflective of the day to day working of the bank.

This system could not come online despite the passage of 2 ½ years. In the AGM of the bank held on 29th March 2011 the President has laid tall claims that by the end of this year December 2011 all branches will come online.

Whether the branches come online by that time is a million dollar question, but by that time the employees of the bank would have en-countered sleepless nights and of-course the money which will flow under the bridge.

The main problem is in the contract executed with the suppliers instead of the development of system. The developer of the system are not readily available as they are in India and because of security clearance reasons. They cannot come to Pakistan hence meeting is done is Dubai at the cost of the bank funds.

This system is not user friendly and has intrinsic, esoteric and complex functionalities. Therefore, the system is not working well and is causing delays. The IT people managing these branches using this system are in a diabolical dilemma because at the end of the day the balance does not match and they have to stay late in the branch at the expense of their health and family life.

Recently oracle was sued by one of the end users company for non implementation see the link below.

http://www.information-age.com/channels/business-applications/news/1598128/aib-sues-oracle-for-84m-over-failed-implementation.thtml

Now it is to be seen that what will happen to the shareholders money of Askari Bank which is now gone down the drain.

Dr. Babur Zahiruddin