$1bn fraud at Kabul Bank upsets UK pull-out from AF

03 Economy, 07 Other Atrocities, 08 Wild Cards, 09 Justice, 10 Transnational Crime, Civil Society, Commerce, Commercial Intelligence, Corruption, Government
DefDog Recommends....

Note buried within the report about classification of documents……..

$1bn fraud at Kabul Bank puts UK’s Afghan pull-out in peril

IMF and Britain’s foreign aid department both withhold money for reconstruction

By Jonathan Owen and Brian Brady

Sunday, 22 May 2011

EXTRACT:

The Department for International Development (DfID) confirmed last night that it had followed the lead of the International Monetary Fund (IMF) in withholding contributions to bankroll hundreds of “nation-building” projects in Afghanistan.

The move, to “protect taxpayers’ money”, came as the full extent of the scandal at Kabul Bank – described as the biggest fraud in modern times – became clear. A secret US government report into the debacle “indicates that insiders at Kabul Bank used fraudulent loans to misappropriate $850m (£525m), representing 94 per cent of outstanding loans”.

. . . . . . .

And it notes that, in addition to oversights by Deloitte, which failed to spot and report warning signs of fraud, a team from PwC didn’t identify any fraud at Kabul Bank and gave it “a clean bill of health” – something
that “may have acted to delay understanding of the gravity of Kabul Bank’s true financial condition both among the examination staff and the international community”, according to the document.

Full Story….