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.
TEXT SIZE - +

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

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid