KARACHI - Board of Directors Chairman of the National Bank of Pakistan Syed Ali Raza and NBP President Syed Qamar Hussain have resigned because of corruption charges, sources told TheNation on Saturday. Although no reason was given for their resignations, but the sources said they stepped down because of corruption charges and to avoid legal action and accountability for causing billion of rupees loss to the NBP, largest financial institution in the public sector, and national exchequer. When contacted, the NBP and the ministry of finance declined to comment. The sources said Raza stepped down amid accusations that he got undue benefits and perks from NBP President Qamar Hussain being a chairman of the NBP Board of Directors. Similarly, Hussain resigned over allegations that he along with Ali Raza damaged the banks credibility and violated the rights of shareholders. Both the high-ups are facing severe corruption cases in the apex court of Pakistan. The appointment of Qamar Hussain as NBP President has been challenged in the Supreme Court, terming his slot as illegal, unlawful and breach of Section 11 (3) (a) of the Banks Nationalisation Act 1974. The sources claimed that MBA degree of NBPs President was fake and that could be one of the major reasons for him to leave his office. Ali Raza submitted his resignation to the ministry of finance on July 09, 2011. He did not give any specific reason in the resignation, but said he was resigning due to some personal reasons. The sources confirmed that Razas resignation had been accepted by the prime minister on July 25, 2011. The government had appointed Syed Ali Raza as Chairman of the NBP Board of Directors for three years on April 02, 2011. The prime minister had appointed Qamar Hussain as NBP President on April 4 for a period of three years. The sources said Raza is in a race to become the next Governor of State Bank of Pakistan. In addition, Raza may also be nominated as PCB Chairman by President Asif Ali Zardari. There are many cases of corruption and frauds pending in the Supreme Court. Three constitutional petitions have been filed by different petitioners in the Supreme Court against Raza, Qamar Hussain including the federation of Pakistan through ministry of finance division secretary, State Bank of Pakistan and some of the board members of NBP. The hearing of the embezzlement of more than Rs 2 billion under the name of Welfare Fund for Banks Staff against the federation of Pakistan and four other high-rank officials of the FIA for not taking stern action against the culprits is underway. The hearing of this constitutional petition titled Criminal Miscellaneous Application (CMAs) 43/2011 is scheduled for August 16, 2011. The hearing of the case against the illegal appointment of Qamar Hussain under the title of constitutional petition of 60-CMAs 2011 is scheduled to be held on August 8, and the case against Ali Raza, Qamar Hussain and some loan defaulters would be heard on August 11. If the above-mentioned allegations are proven, Raza could be removed from the NBP chairmanship. Raza served NBP as president and acting chairman for over 10 and a half years and was removed in January on the directives of the Supreme Court. Raza assumed charge as NBP president in 2000 for two years and got multiple extensions. During his tenure, the asset base of the bank crossed one trillion rupees in 2010, which was Rs371.635 billion in 2000. The bank posted profit-after-tax of Rs17.5 billion in 2010 compared with just Rs461 million in 2000. In a petition filed by Syed Jehangir, Collective Bargaining Agent president, and the NBP Trade Union Foundation secretary general against the federation of Pakistan through the ministry of finance division, the petitioner demanded the Supreme Court to take up this matter ensuring the recovery of looted money of over Rs 2 billion and direct the competent/investigating agency including all the four higher officials of FIA to take stern action against the culprits in accordance with law. The petitioner raised following points of public importance to be considered by the apex court: whether the pending disposal of suo moto action, HRC 2856/2007, on the basis of a news clipping of an Urdu daily, the culprits can use the trust funds for their own benefits and it amounts to criminal act of the misappropriation of funds; whether funds of a trust specifically envisaged by the finance minister on behalf of the government of Pakistan can be misappropriated under the garb of achievement award by the high-ups of the bank for their own benefits; whether the funds collected from the gross profit of national commercial banks can be disbursed in the name of scheme of achievement award/performance award; whether after the enquiry held by the FIA and its findings misappropriation/misuse/embezzlement of funds of more than Rs2 billion the balance of huge fund could be left at the disposal of higher management of the bank in violation of proposed manner and the same amounts to commission of heinous crime of misappropriation and as such said amount being a trust of shareholders is recoverable from the culprits; whether the FIA after completion of inquiry and prima facie establishment of allegation of misappropriation of over Rs2 billion is legally bound to register a case and conduct investigation and effect recovery of looted amount in accordance with law.