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

Video Five Patients Given Experimental Ebola Drug Said To Be Improving

Experimental drugs have been tried on six people: three Westerners and now, three African pyhysicians More

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As Ukrainian military reclaims control of eastern cities residents rebuild their lives, but many say everyone is being treated with suspicion More

Video In Rural Kenya, Pressure Builds Against Female Circumcision

Girls learn to object; FGM practitioners face penalties from jail sentences to stiff fines 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.
Five Patients Given Experimental Ebola Drug Said to Be Improvingi
X
Carol Pearson
August 19, 2014 11:43 PM
The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.
Video

Video For Obama, Racial Violence is Personal Issue

The racial violence in the St. Louis suburb of Ferguson is presenting U.S. President Barack Obama with an issue to which he has a deep personal connection. To many Americans, Obama's election as America's first black president marked a turning point in race relations in the United States, and Obama has made ending the violence a policy priority. On Monday he issued a new call for calm and understanding. Luis Ramirez reports from the White House.
Video

Video Clinton-Obama Relationship Could Impact 2016 Election

President Barack Obama and former Secretary of State Hillary Clinton have a long and complicated relationship. That relationship took another turn recently when Clinton criticized the president’s foreign policy. VOA National Correspondent Jim Malone reports there is renewed attention on the Clinton-Obama relationship as Hillary Clinton considers running for
Video

Video Iran Looks to Maintain Influence in Baghdad With New Shia PM

Washington and Tehran share the goal of stopping Syrian-based militants in Iraq. But experts say it's Iran, not the United States, that will most influence how the new government in Baghdad approaches internal reforms and the war in Syria. VOA State Department Correspondent Scott Stearns has the story.

AppleAndroid