Kabul Bank, once the country's largest financial institution, collapsed in 2010 when it was revealed that over 900 million USD was embezzled by the bank's top executives. The revelations led to a depositor panic that received international attention and helped give Afghanistan the reputation for corruption that it has today.
Former Kabul Bank Chairman, CEO Jailed for 10 Years
Tuesday, 11 November 2014
http://www.tolonews.com/en/afghanistan/17082-former-kabul-bank-chairman-ceo-jailed-for-10-years
The former Chairman of Kabul Bank, Sherkhan Farnood, and the bank's former CEO, Khalilullah Ferozi, have been sentenced each to 10 years in jail by a court in Kabul.
The announcement came Tuesday in a verdict handed down by the appellate court after hours of discussions between defendants, judgest and prosecutors. But the decision was ultimately the result of President Ashraf Ghani's six-week push to reach a conclusive end to the country's largest corruption case, an important first step, he said, to combating Afghanistan's endemic corruption.
In addition to his ten year sentencing, Farnood was also fined 237 million USD. The assets of Mahmood Karzai, brother of former President Hamid Karzai, and Hasin Fahim, brother of late Marshal Qasim Fahim, were also frozen by the court. Though Farnood and Ferozi have the right to appeal the verdict.
In addition to the top executives, nine other lower level employees of the bank were sentences to shorter jail sentences and smaller fines.
"You Sher Khan Farnood, son of Mohammad Murad, are sentenced to five years imprisonment for your connection to money laundering on the basis of Article 48 and in line with Article three of the anti-money laundering law published in 2004 and ten years in jail because of your connection to embezzlement in accordance with the first paragraph of Article 268 of the criminal law from the date of detention," Judge Mairajuddin Hamidi announced to the court on Tuesday.
"You Khalilullah Ferozi, son of Faqir Mohammad, are sentenced to five years imprisonment in connection to money laundering on the basis of article 48 and in line with article three of the anti money laundering law published in 2004 and ten years in jail for your connection to embezzlement according to article 268 of criminal law since the date of detention," Judge Hamidi said to the former CEO.
While Farnood did not respond for comment on the verdict, Ferozi was very outspoken and claimed it was a politically motivated decision. "It was a dramatic warrant which was ordered by the president and the judges also certified the same order, it was impossible to reopen the Kabul Bank case in five or six days, may God reveal his mercy on the president for issuing such orders on the court which is a commissioned court," Ferozi said on Tuesday.
"We don't endorse the verdict and will go for an appeal; we hope that one month is granted to us on the basis of the law for filing an appeal [...] the verdict was unjust and it was ethnically motivated, it was on the order of Zakhelwal and the ARG [presidential palace]," Ferozi added.
The other nine employees of the bank that received their sentences and fines on Tuesday included Arif, Sher Agha, Tariq, Bismillah, Mahboob Shah, Kamal Nasir, Mustafa and Zafarullah who were sentenced to lower period jail terms. However, one of the men, Mohammad Qasim, was declared innocent.
The appellate court also ordered the freezing of all assets of those who received money from the bank under the pretense of loans and pushed the bank toward crisis and borrowers were asked to pay their loans as soon as possible.
"All assets and properties of Hajji Mohammad Zahir, Ghulam Dawoud, Nasir Sufi, Nisar Ahmad, Shukrullah Shukran, Hayatollah Kokcha, Hairatan Oil Facilities, Kabul Naft, Pamir Aviation Company, Abdul Ghafar Dawi, Gulbahar Habibi, Akhter Gul Malik Jan and Mohammad Tahir, Gulbahar Tower, Shaheen Money Exchange Company, Mahmoud Karzai, Hussain Fahim, Zahir Group and Gas Group must be frozen on the basis of article 12 of chapter 13 of the job descriptions and authorities of the attorney and in line with the order of the president until the following individuals and companies ensure payment of their loans," Judge Hamidi announced.
Kabul Bank, once the country's largest financial institution, collapsed in 2010 when it was revealed that over 900 million USD was embezzled by the bank's top executives. The revelations led to a depositor panic that received international attention and helped give Afghanistan the reputation for corruption that it has today.
To watch the verdict announcement on Kabul Bank, click here: