News / Asia

Former Top Officials in Kabul Bank Scandal Under Arrest

An Afghan girl walks past by Kabul Bank's main office in Kabul, Afghanistan, March 27, 2011.
An Afghan girl walks past by Kabul Bank's main office in Kabul, Afghanistan, March 27, 2011.

Afghanistan is going after former officials linked to a massive banking scandal that has jeopardized tens of millions of dollars in foreign aid.

Deputy Attorney General Rahmatullah Nazari said Thursday authorities have arrested the former chairman and former chief executive at Kabul Bank, the country's biggest private lender.

He refused to share the specific charges but said ex-chairman Sher Khan Farnood and former chief executive Khalilullah Fruzi had embezzled hundreds of millions of dollars.  

Nazari said both men were arrested Wednesday and could appear in court for trial in about a month.  

The arrests are the first in a scandal that caused Kabul Bank to lose more than $900 million, pushing it to the edge of a collapse before the country's central bank stepped in to rescue it.  They come just days after the former governor of Afghanistan's central bank fled to the United States, saying he feared for his life.

Former Central Bank Governor Abdul Qadir Fitrat told VOA his life was in danger from those he tried to prosecute for "stealing millions" from Kabul Bank.  Afghan prosecutors contend Fitrat played a role in the Kabul Bank scandal and want him brought back to Afghanistan to faces charges.

The financial fiasco has caused some international donors to question the stability of Afghanistan's financial system, just as the country is trying to take on more responsibility for security and development.

The International Monetary Fund (IMF) has decided not to renew its support program until the Afghan government takes concrete steps to resolve the Kabul Bank crisis.  Tens of millions of dollars in aid from foreign donor nations has been subsequently withheld from Afghanistan.

Deputy Attorney General Nazari said Tuesday an arrest warrant for Fitrat has been sent to Interpol and the U.S. embassy in Kabul.

The scandal has touched some of the country's most powerful families.  Afghan President Hamid Karzai's brother and Vice President Mohammad Qasim Fahim's brother are both shareholders in Kabul Bank.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Christmas Gains Popularity in Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ugandan Doctors Aid Victims of Sudan's Civil Wari
X
Adam Bailes
December 22, 2014 3:45 PM
In Sudan's state of South Kordofan, the number of amputees as result of civil war is in the thousands, but few have access to sufficient medical help. Adam Bailes recently visited the area and says a small team of Ugandan doctors has been providing remote help, producing new prosthetic limbs for those in need.
Video

Video Ugandan Doctors Aid Victims of Sudan's Civil War

In Sudan's state of South Kordofan, the number of amputees as result of civil war is in the thousands, but few have access to sufficient medical help. Adam Bailes recently visited the area and says a small team of Ugandan doctors has been providing remote help, producing new prosthetic limbs for those in need.
Video

Video Jane Monheit Christmas Special

Chanteuse Jane Monheit sings the holiday classic “Have Yourself a Merry Little Christmas,” and explains why it’s her favorite song of the season.
Video

Video Calm Amid Fear in Daily Life in S. Sudan’s Town of Bentiu

Six months ago, Bentiu was a ghost town. The capital of northern Unity State, near South Sudan’s important oil fields, had changed hands several times in fighting between government forces and rebels. Calm returned in November and since then, residents of Bentiu have been trying to regain some sense of normalcy. Bentiu’s market has reopened there are plans to start school again. But fears of new attacks hang heavy, as Benno Muchler reports from Bentiu.
Video

Video US Business Groups Press for Greater Access to Cuba

President Barack Obama's decision to do all he can to ease restrictions on U.S. trade, travel and financial activities with Cuba has drawn criticism from some conservatives and Republicans. People who bring tourists to the island and farmers who want to sell more food to Cuba, however, think they can do a lot more business with Cuba. VOA's Jim Randle reports.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.

All About America

AppleAndroid