This refers to the Q & A, “If any change is needed in LICHF, we will make it” (December 3).
In spite of being a relatively new organisation, LIC Housing Finance has, by sheer inefficiency, accumulated an actuarial deficit of Rs 14,000 crore, which, according to LIC MD Thomas Mathew, is only a “notional loss”. Similar terminology was used by the former telecom minister, A Raja, which resulted in a huge loss to the exchequer, according to the Comptroller and Auditor General’s (CAG) report. Therefore, CAG should also delve deep into the affairs of LICHF and ascertain whether it is a real or notional loss.
It isn’t surprising that the corporation’s non performing assets are less than 1 per cent since all the loans are secured by a mortgage on fixed assets. What is surprising is that the LIC management preferred to form an internal committee to ascertain the facts only after the media started reporting on the issue. It is high time the board and the top management revamped to instil a sense of professionalism, being the custodians of huge amounts of public money, before another scam breaks out. The Insurance Regulatory and Development Authority and the finance minister may have to appoint vigilant audit committees to supervise the firm’s operations periodically.
B Venkateswaran, Chennai
