Kabul Bank fraud claims probed

Afghanistan's biggest privately owned bank is being investigated following allegations of mismanagement.

    Customers waited outside the bank in September amid fears that it would collapse [EPA]

    Afghanistan's Kabul Bank is being investigated following allegations that its former chairman misused funds, the Afghan finance minister has told Reuters news agency.

    "Mismanagement is being investigated," Omar Zakhilwal said on Tuesday on the sidelines of an Afghanistan investment conference in Dubai.

    Hundreds of Afghans queued outside the bank in September, trying to withdraw their savings after reports that millions of dollars had been lent and poured into high-risk real estate investments in Dubai.

    Afghan authorities then seized operations at the bank, which is Afghanistan's biggest privately owned, following allegations that Sherkhan Farnood, the chairman, misappropriated funds.

    Farnood has been ordered to hand over more than $150m in luxury villas and condominiums  that he allegedly bought with the bank's money for various Afghan elites, including Mahmood Karzai, the brother of the Afghan president.

    Zakhilwal said the lender was now under the control of the central bank but was functioning normally.

    "Kabul Bank has stabilised and is operating normally," he said.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Pick your team and answer as many correct questions in three minutes.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Remembering Chernobyl

    Remembering Chernobyl

    The fallout from the Chernobyl nuclear power plant explosion remains as politicised as ever, 28 years on.