Tuesday, October 4, 2011

CVC allows finance ministry to select LIC chairman

    Life Insurance Corporation (LIC), the country’s largest investment institution, may finally get to see a new chairman as the Central Vigilance Commission (CVC) has allowed the finance ministry to go ahead with the selection process. The ministry had put the selection on hold pending a report from the CVC, which is investigating corruption charges against two contenders for the top post.
    The CVC has told the selection panel headed by the Finance Secretary RS Gujral that it would take some time to complete its inquiry against former chairman TS Vijayan and managing director Thomas Mathew T. It has said that the ministry in the meanwhile can seek clearance from the LIC’s central vigilance officer on all the potential candidates and proceed with the selection process.
    "CVC has not cited any time frame and has asked the selection committee to finalise a candidate and then seek its clearance," a member of the selection committee said requesting anonymity.
    LIC has been without a chairman since May when the government refused to grant an extension to Vijayan.
    The selection committee, which has met twice so far, will take a final decision next month. The committee includes J Hari Narayan and CS Rao, the current and former chiefs of Insurance Regulatory and Development Authority.
    CVC had recommended a probe by the CBI into the investments made by LIC.
    In July, the CBI cleared both Vijayan’s and Mathew’s names in the LIC Housing Finance scam.
    CVC’s go ahead could put Vijayan and Mathew back in the race for the top post, but officials say they are unlikely to find support in the selection committee.
    The other LIC officials in the fray are acting chairman DK Mehrotra, executive director in-charge of international operations Sushobhan Sarkar and executive director (underwriting and re-insurance) TT Mathew.

(Source: A well-wisher of NOINO)

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