Dilawari spurns SIGAR report as misleading

KABUL (SIGAR) report on a possible crisis in the country’s banking sector as misleading.

Reacting to the watchdog’s grim assessment, DAB Governor Noorullah Dilawari said the country’s banking system was stable and there was no possibility of any immediate crisis.

In its recent report SIGAR said the banking system in Afghanistan was instable and DAB’s monitoring and evaluation capacity was limited. The absence of capacity and limits of DAB had affected banking activities in the country and a crisis like the one faced by Kabul Bank developing, SIGAR warned.

Addressing a news conference, Dilawari acknowledged problems in the banking system. “Problems persist in the banking system even in the US, Europe and other countries. The SIGAR report is incorrect and baseless.” He said DAB would officially submit its response to SIGAR.

Matiullah Faiq, DAB’s monitoring manager for financial affairs, said SIGAR had no authority to assess the central bank’s capacity; it could only investigate the use of US assistance to Afghanistan.

He said there was no document showing signs of a banking crisis in Afghanistan. His department had been conducting regular monitoring of other banks in the country.

Three years back, Kabul Bank came to the verge of collapse as result of $900 million withdrawn illegally. Following court orders, those responsible for the crisis were tried.

Last month, the Ministry of Finance announced four companies had evinced an interest in buying the New Kabul Bank. Finally, American Company INC. and KRU Capital Partners LTD from the UAE submitted their bids. The results would be announced within two weeks.

Faiq said his department needed professional and technical assistance, especially for its five years (2014-2018) strategy implementation. 

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