Kabul Bank Scandal: How Afghan President’s Brother and Top Officials Embezzled $900 Million

The Kabul Bank scandal, one of the most brazen cases of corruption in history, involved the embezzlement of nearly $900 million by the brother of Afghan President Hamid Karzai and top officials at the bank.

Questionable Loans and Transactions

According to an investigation by The Guardian, Mahmoud Karzai, one of the president’s brothers, received a $22 million interest-free loan from the bank to buy a share in the institution. This was just one of many questionable loans and transactions that took place at the bank, which was known for its lack of transparency and poor governance.

Fake Information and Misleading Audit

The investigation found that Kabul Bank’s management had entered fake information into the internal audit system, making it seem as though the bank was financially healthy when in reality it was on the brink of collapse. The bank’s CEO, Khalilullah Ferozi, admitted to currying favor with Karzai’s family by providing them with large loans and favors.

Pressure from Pakistan’s Inter-Services Intelligence Agency

In an exclusive interview with The Guardian, Ferozi claimed that the bank’s management had been under pressure from Pakistan’s Inter-Services Intelligence agency to embezzle funds and use them to support the Taliban against the government. He also alleged that the bank’s CEO, Khalilullah Farnood, had a “little black book” containing compromising information about top officials’ involvement in the scandal.

Involvement of Afghan Government Officials

The investigation also found that some of the most important people in the Afghan government were involved in the scandal, and that the country’s attorney general was unwilling or unable to take action against those responsible.

Forensic Audit Underway

A $10 million forensic audit is currently underway to help recover assets and prosecute those responsible. However, many experts believe that it may be too late to recover much of the stolen money, and that a full-blown inquiry into the scandal is necessary to ensure accountability and prevent similar scandals from happening in the future.

Widespread Corruption in Afghanistan

The Kabul Bank scandal is just one example of the widespread corruption that has plagued Afghanistan during its reconstruction efforts. Despite billions of dollars in aid from Western countries, corruption remains a major obstacle to the country’s development.