News / Asia

Kabul Bank Heads Sentenced for Corruption

Sherkan Farnood, founder of Kabulbank, speaks in court in Kabul, March 5, 2013. Sherkan Farnood, founder of Kabulbank, speaks in court in Kabul, March 5, 2013.
x
Sherkan Farnood, founder of Kabulbank, speaks in court in Kabul, March 5, 2013.
Sherkan Farnood, founder of Kabulbank, speaks in court in Kabul, March 5, 2013.
Ayaz Gul
A tribunal in Afghanistan has sentenced two of the former heads of the country's first private bank, formerly named Kabul Bank, to five years in prison each for involvement in a multi-million-dollar fraud that led to the institution's collapse in 2010. But observers have criticized the verdict as too lenient given the extent of the fraud. 
 
The head of the three-judge Afghan Supreme Court special tribunal, Shamsul Rahman Shams, handed down the sentences in the presence of the defendants and independent observers.  
 
The judge said the court found Kabul Bank's former chairman, Sherkhan Farnood, and former chief executive officer, Khalilullah Ferozi, guilty of misappropriating $278 million and $530 million, respectively. He added the two men are each being sentenced to five years in prison and must repay the stolen funds. 
 
The senior bankers have been under house arrest for more than a year and, according to the court ruling, that period of detention is included in their sentences. They were among 21 Kabul Bank and government employees convicted for involvement in the corruption scandal. However, the other defendants were given lesser sentences.  All of the defendants have the right to appeal Tuesday's ruling.  
 
Representatives of Afghanistan's Independent Joint Anti-Corruption Monitoring and Evaluation Committee were in attendance during Tuesday's court proceedings. Its chairman, Drago Kos, criticized the punishment as "relatively light."
 
"We can describe our feeling about his verdict in one word: disappointment," he said. 
 
He said the recovery of the stolen funds will be difficult because the special tribunal did not register a conviction for money laundering, which would have permitted the confiscation of millions of dollars being held in foreign bank accounts. 
 
"The chances to recover the stolen money are limited almost down to zero because the court has not used the anti-money laundering legislation of Afghanistan," he said. 
 
Tuesday's judgment followed three years of detailed investigations into corruption that deprived the Kabul Bank of more than $900 million and triggered a financial crisis, civil disorder and a run on deposits in the war-ravaged nation. The bank was bailed out by the government and has since been renamed New Kabul Bank.
 
The Afghan special tribunal did not charge several other influential people allegedly implicated in the scam as shareholders, including a brother of President Hamid Karzai. 
 
Afghanistan's donors, led by the United States, have promised billions of dollars in aid after NATO forces withdraw at the end of 2014.  However, they are demanding the Karzai government bring the rising wave of corruption under control.

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comment Sorting
Comments
     
by: Haron from: Afghanistan
March 05, 2013 11:51 AM
it is not fair that Karzai's Brother (Wali Karzai) should be given awards of corruptions but these two persons must be sentenced for five by five years. these two persons spent all their budgets for presidential election campaigns to Karzai, but today they must have been prosecution. it is preferred to prosecute Karzai's and Fahim's brothers rather than these two persons. Karzai Family trees drink the blood of the Afghan people and western countries and still they're thirsty.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violencei
X
Lenny Ruvaga
November 27, 2014 7:05 PM
The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid