Nov 5, 2014 6:17 AM
$1B Afghan bank scandal resolved: central bank gov
The Associated Press
KABUL, Afghanistan (AP) The governor of Afghanistan's central bank says the scandal that saw almost $1 billion embezzled from the Kabul Bank by senior shareholders has been resolved.
More than $330 million has been recovered, and $500-600 million worth of assets have been identified, Noorullah Delawari said on Wednesday.
He says the amount still to be repaid is now being pursued through the courts, or is subject to requests to other countries, including the United States, for help in recovery.
The Kabul Bank collapsed in 2010 and was placed in receivership after major shareholders, including relatives of senior politicians such as the former president and vice president, were accused to using it to fund lavish lifestyles.
The scandal shook international confidence in Afghanistan's financial sector and ability to oversee its banking sector.