Thursday, November 29, 2012


The Independent Joint Anti-Corruption Monitoring and Evaluation Committee has published its extensive report on rampant corruption at the failed Kabul Bank, which resulted in a loss of $935m. The committee found a "reckless disregard" for sound banking practises.

The report details a boatload of fraudulent and corrupt activities on behalf of bank staff:

(1) Opening loan accounts for proxy borrowers, on instruction of senior management.

(2) Forging applications, financial statements, and using counterfeit corporate stamps and seals.

(3) Transferring loan proceeds, through creating bogus SWIFT messages, and then disbursing cash and electronic transfers.

(4) Bogus transfers to non-existent "overseas suppliers."

(5) Paying salaries to non-existent employees, paying excessive bonuses, advance payment of  rent and salaries, payment for fake assets.

(6) Payments to Pamir Airways, who passed through the funds to others.

You can read the entire report here:

Report of the Public Inquiry into the Kabul Bank Crisis

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.