Kabul Bank Debtors: A Tale of Two Cities
=====================================
Divided into Two Groups
In a shocking turn of events, it has been revealed that Kabul Bank’s debtors are split into two distinct groups - those who owe relatively small amounts and those who owe massive sums.
The Smaller Group
The smaller group consists of 17 individuals, including employees of the bank who received salary advances. These individuals collectively still owe $186,226.
The Larger Group
The larger group, however, includes six high-profile debtors who owe more than $1 million each. Among them is the brother of former first vice president Fahim, who owes a staggering $3.4 million.
Delayed Repayments and Suspicions
Despite agreeing to repayment schedules, many of these major debtors have failed to make payments on time. There are suspicions that high-ranking officials at the Kabul Bank receivership are facilitating these delays without proper justification. Furthermore, reports suggest that collateral, such as deeds to property, have gone missing from some debtors’ files.
President Ghani’s Deadline
In a bid to expedite repayments, President Ghani set a one-week deadline for debtors to settle their accounts. Those who failed to comply would be referred to the Attorney General’s Office (AGO) for prosecution.
Debtors Who Did Not Sign Agreements
Of those who did not sign agreements, 14 major debtors owed $626.9 million, while 40 small borrowers owed $21 million and 64 advance salary recipients owed just over $400,000.
Arrest Warrants Issued
The AGO has reportedly issued arrest warrants for these defaulters, but many are outside the country, making it difficult to execute the warrants. Dawi, one of the major debtors, is still in Afghanistan, but the Ministry of Interior has not taken any action against him.
International Recovery of Funds
Between 2007 and 2011, Kabul Bank transferred at least $873 million to recipients in 28 countries for the benefit of related parties. The largest recipient countries were:
- United Arab Emirates ($410.1 million)
- Latvia ($130.7 million)
- China ($117.9 million)
These transfers included funds for bank accounts, oil and gas products, construction materials, tobacco, and other goods.
Recovery Efforts
The recovery of these funds relies on cooperation from foreign jurisdictions if debtors refuse to cooperate. Afghanistan has requested assistance from several countries, including:
- United Kingdom
- Germany
- UAE
- Switzerland
However, these requests have suffered from technical deficiencies and were not executed.
Conclusion
==========
Kabul Bank’s debtors are a mixed bag, with some owing relatively small amounts while others owe massive sums. The government is working to recover these funds, but it remains to be seen whether they will succeed in their efforts.