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”.
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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.
