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Kabul Bank up for sale

in Afghan Business

Kabul Bank up for sale

Afghanistan’s first private sector bank, Kabul Bank, is being put up for sale, senior officials announced on Saturday.

The plan comes at a time when USD 34.9 million of its loan mark-ups have been written off. The bank went bankrupt two years ago due to financial corruption involving handing out unauthorized loans. The loans mounted up to USD 937.7 million.

According to Mr. Noorullah Delwari, the Central Bank governor, the bids for the New Kabul Bank’s sell-off would be called in August in line with a Cabinet decision. The bidding would be open for Afghan and foreign investors.

 The Central Bank governor revealed that USD 128.2 million of the loans had been recovered so far and the borrowers have guaranteed repayment. The auditors still have not worked out the remaining USD 410.4 million which have remained unaccounted for.

Mr.Delwari was confident that a sizeable portfolio of infected loans would be recovered.

Earlier this month, President Hamid Karzaid had ordered to refer the Kabul Bank loan case to court. The Attorney General Office presented a detailed report on the crisis, saying properties belonging to the defaulters had been sold in Kabul and Dubai.

The properties include 147 apartments in the Istiqlal Township in Kabul and another 19 in the UAE, according to the report that said 150 containers and some land had been seized from borrowers.

Mr. Abdul Hamid Muhibi the Chief of Audit for Kabul Bank had reported a list of people who had taken unauthorized loans from the Kabul Bank. The list is as follows:

Sher Khan Farnood: USD 279 million

Zahid Walid Company (under the Supervision of Haseen Fahim, brother of the First Vice President of the Government): USD 4.4 million

Mahmood Karzai, Tahir Zahid and Ghulam Daud: USD 16 million each

Shukrullah Shakir: USD 2.1 million

Haji Khalil: USD 29 million

Khalilullah Ferozi: USD 5.7 million

Gas Group Company: USD 121 million

Hayatullah: USd 1.7 million

Pamir Airways: USD 98 million

Gulbahar Adibi: USD 30 million

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