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Kabul Bank defaulters are participating in an investment project

in Afghan Business

Kabul Bank defaulters are participating in an investment project

The Kabul Bank defaulters are reportedly participating in the ‘Smart City Township’ which was inaugurated on Wednesday in capital Kabul.

This move is to provide the debtors an opportunity to start their business in order to be able to pay their obligations instead of being behind the prison bars.

“The project motivates the debtors to make investments and repay their debts,” said Abdul Ali Mohammadi, president’s legal advisor.

Ex-CEO of Kabul Bank Khalilullah Ferozi was one of the main players behind the USD 900mn banking scandal. He was sentenced to 15 years in jail last year in November.

Ferozi is going to participate in the new housing project and hold a big share in the project which has a revolving capital of USD 900mn.

Meanwhile, a number of economists have slammed the government for lifting the sentence of the prisoners and involving in government projects.

The government seized Kabul Bank in 2010 when the bank was on the verge of collapse after embezzlement of USD 900mn by the bank’s own officials and shareholders.

Sher Khan Fernud, Khalil Ferozi, Mohammad Hussain Fahim, Mahmood Karzai, Gulbahar Habibi, Abdul Ghafar Dawi, Mohammad Ibrahim, Sofi Nisar, Tahir Zahir, Daud Nasim were among those violating Article 34 of the bank law by misusing customers’ deposits.

The government bailed the bank out at USD 825mn to overcome the crisis that pushed Afghanistan’s banking system to the brink of ruin.

President Ghani reopened the Kabul Bank case soon after taking oath and the Kabul Bank Clearance Committee was formed to expedite inquiry into the scandal.

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