Allegations of involvement by the Chief Minister and Chief Secretary of Sikkim in the State Bank of Sikkim (SBS) scam have been raised by Sikkim BJP spokesperson Passang Sherpa on May 23. Sherpa’s statement has exacerbated the growing mistrust among the populace towards the SBS, an institution established in 1969 by a proclamation from the Chogyal, operating independently of the Reserve Bank of India. The controversy surrounding SBS intensified recently when it became embroiled in a Rs 69 crore scam, resulting in the arrest of three officers. Sherpa has called for an independent investigation, alleging that the bank has transformed into a hub for money laundering under the government’s watch. “Today, many MG NREGA employees and other temporary workers are not receiving their salaries. The caretaker government, including the Chief Secretary, remains silent on these critical issues,” Sherpa stated, suggesting that if the current administration fails to address these concerns, they should step aside.
Sherpa highlighted the presence of Phurba Wangdi Bhutia, the Managing Director of SBS, at a Sikkim Krantikari Morcha (SKM) party meeting while still holding his position at the bank, calling for the intervention of the Enforcement Directorate (ED) and vowing to pursue the matter until its resolution. Earlier on May 22, Sikkimey Nagarik Samaj exposed a significant financial scam at SBS, involving unauthorized transactions totaling Rs. 69 crore. This revelation follows an internal audit conducted on March 31, 2024, which uncovered the fraudulent activities. Despite the audit, it took the bank almost three months to file a First Information Report (FIR), signaling severe negligence by responsible officials.
The scam has sparked widespread concern among customers and stakeholders, particularly pension holders, due to the potential impact on their savings. While the names of three SBS employees have surfaced on social media as suspects, suspicions linger that more individuals within the bank may be involved, hinting at a broader criminal conspiracy. This is not the first instance of misconduct at SBS. In 2011, a bank official in Rabongla was accused of embezzling interest money from account holders, which came to light following complaints from affected customers. In response to the scam, the Managing Director of SBS downplayed the situation as “a very small issue,” further heightening public apprehension. Sikkimey Nagarik Samaj has called for a comprehensive and impartial investigation into the fraud, urging SBS to initiate legal proceedings against all loan defaulters and enhance transparency.
