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Government’s action just a slogan against Kabul Bank scandal

(Last Updated On: February 25, 2015)


Integrity Watch Afghanistan (IWA) said that the government’s action was just a slogan against the Kabul Bank scandal.

According to the IWA findings, the New Kabul Bank losses $ 7 million annually that after the bust of former Kabul Bank, the Bank have lost $ 50 million so far.

IWA criticized the Afghanistan government and emphasized that Kabul Bank’s debtors have the support of National Unity Government leaders.

The institution stressed that Afghan government failed to reclaim the stolen money of Kabul Bank and punish the perpetrators.

IWA also warned that if a supervisory capacity not created in the Central Bank, other Private Banks will also face the fate of Kabul Bank.

In the meantime, Afghanistan interior ministry accepts that none of the Kabul Bank’s escapees arrested but rejected IWA’s statements.

President Ashraf Ghani announced on Oct. 1 that he would re-open the inquiry into the theft of almost $1 billion from the bank, fulfilling a campaign promise to make fighting corruption a priority.

The Afghan government was forced to bail out the country’s then biggest bank after a run on deposits in 2010. It was later re-launched as the state-run New Kabul Bank, but confidence in the banking sector has yet to fully recover.

Afghanistan relies on aid for most of its income and, despite receiving billions of dollars in aid each year, was forced to delay payments to civil servants a few months ago because it had run out of cash.
Reported by Ahmad Farshad Saleh


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