Government has not investigated the Kabul Bank Case seriously

February 26, 2015 – Kabul: It has been more than four months since the Kabul Bank case is
reopened by the new government, but the government has failed in the prosecution of Kabul Bank’s
felons and the recovery of embezzled asset. Integrity Watch’s findings indicates that the government
has recovered USD 228 out of USD 977 million from Kabul Bank’s debtors, out of which USD 179.1
million is in cash and the remaining USD 48.9 million worth assets that has been sold to the
government, but the amount has not been paid by the relevant institutions to the government
treasury yet. Meanwhile, according to a promissory note between Ministry of Finance, and Da
Afghanistan Bank, the Ministry of Finance has to bailout an amount of about Afn 41.3 billion which is
equal to about USD 750 million to Da Afghanistan Bank from national treasury within 8 years. It is
worth mentioning that, the asset recoveries process, dealing with Kabul Bank’s shareholders and the
process of selling of assets to the government department has not been transparent. Access to
accurate information in this regard has also been a challenge.
The current government has also failed to summon the runaway felons of Kabul Bank by diplomatic relations for prosecution. Despite, the government has decreased the interest for the shareholders; they have not paid their debts to the government yet. Sayed Ikram Afzali, Executive Director of Integrity Watch Afghanistan said to the media, “Kabul Bank corruption has badly affected the state, economy, development, and democracy in Afghanistan as well as citizens and international community trust. If the government do not prosecute, expose and penalise the accused felons of Kabul Bank case, people trust will be lost on the new government and their commitments of fighting corruption and enhancing transparency which were promised during election campaigns.
Emphasizing on fulfilling Tokyo Commitment, Integrity Watch considers the establishment of a standard banking system, and implementation of Money Laundering Law through a transparent and accountable manner necessary for restoring public trust on the new government. According to the statements of Executive Director of Integrity Watch: “However, the government may not be able to totally eradicate the roots of corruption and replace it with transparency immediately, but turning the commitments in to action against big corruption issues such as Kabul Bank embezzlement case, can increase the reputation and trust of the new government in the eyes of citizens and international community.”
For avoiding such banking crisis and establishing a transparent and accountable banking system, the government should implement oversight mechanism on banking system and process. In addition to this, the government should prepare and publish transparent and comprehensive reports on banks and their services, so that illicit financial flows in this country are prevented. Such practises make the banking process transparent and accountable and increase public trust on the banking system in Afghanistan.
For more information in this regards and access to Policy Brief on Kabul Bank case, please contact: Mirwais Nasery, Senior Communication Officer, Integrity Watch Afghanistan:
Mobile: 0093 780942942
Email: [email protected]
About Integrity Watch Afghanistan:
Integrity Watch Afghanistan established in 2005 and since 2006 work as an independent civil society
organization. The aims of this organization are to fight against corruption and increase transparency,
and accountability in Afghanistan through research, monitoring and advocacy

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