Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Providing Internet to rural areas

Read more

WEB NEWS

290 Syrian cultural sites damaged by civil war

Read more

WEB NEWS

The best viral Christmas ads of 2012

Read more

FASHION

Fashion, what's happened in 2014

Read more

FRANCE IN FOCUS

France: 2014 in review

Read more

#THE 51%

South Africa: Taking a stand against child marriage

Read more

DEBATE

The Future of the Book

Read more

DEBATE

The Future of the Book (part 2)

Read more

REPORTERS

France 24’s best documentaries of 2014

Read more

Asia-pacific

Security officers beat customers at embattled Kabul bank

Text by News Wires

Latest update : 2010-09-08

Officers of Afghanistan's National Security Directorate beat several people with batons as they scrambled to withdraw cash from the embattled Kabulbank, according to witnesses. Two former directors quit last week over allegations of graft.

REUTERS - Afghan security forces used batons on unruly customers scrambling to withdraw their savings on Wednesday from a branch of the graft-hit Kabulbank, the country’s biggest private financial institution.

Kabulbank’s troubles have threatened to add a financial crisis to Afghanistan’s other woes, with military and civilian casualties at record levels as a Taliban-led insurgency grows and ahead of parliamentary elections on Sept. 18.

Officers from the National Security Directorate struggled to maintain control of up to 200 people outside one branch in the capital as desperate customers tried to take out money ahead of a three-day Muslim holiday.

The crisis developed after the company’s top two directors resigned amid unproven media allegations of corruption.

Corruption is a common complaint among ordinary Afghans and Washington fears graft is boosting the insurgency and complicating efforts to strengthen government control so foreign troops can hand over to Afghan security forces—whose salaries are paid through Kabulbank.

The central bank on Monday ordered the assets of Kabulbank’s former chairman Sher Khan Farnood and chief executive officer Khalilullah Fruzi to be frozen, together with those of several other shareholders and major borrowers, pending an inquiry.

Reuters witnesses saw armed officers of the National Security Directorate beat several people—including at least one policeman—among queues of angry customers gathered outside the only bank branch to open on Wednesday.

“It’s Eid, we need money for food, clothes, candy,” said Hameed Iqbal, an airforce member. “They said all the bank branches would be open, they lied. I’m extremely angry.”

Afghan President Hamid Karzai’s spokesman promised the bank’s customers their savings were safe and told them to be calm.

“We guarantee their money and the central bank is ready to pay loans to Kabulbank whenever it is needed,” Siamak Herawi said.

Anger at Karzai

Another customer, who identified himself as Rahim, blamed the government for the crisis at the bank.

“If they do not listen to us we will break all the windows of Kabulbank, we will loot all the branches and even ... the presidential palace,” said Rahim, who said he was a cook in a government office.

Widespread perceptions among Afghans that corruption is rife in Karzai’s government will be a major issue at a Sept. 18 parliamentary election, which is seen as a litmus test of stability in Afghanistan.

Kabulbank’s customers include 250,000 state employees.

Sayed Hammad, a 38-year-old grocery store owner, said he had heard on television on Tuesday that all Kabulbank branches would be open instead of just the single branch in Kabul. He said he wanted to withdraw $3,000 and close his account.

"I used to trust the bank but not anymore," Hammad said.
"You put your money in, you don’t know if you’ll get it out."

Last week, U.S. media reported the central bank had taken control of Kabulbank, forcing Farnood and Fruzi to resign and ordering the chairman to hand over $160 million worth of luxury villas bought with bank funds in Dubai.

The Afghan government and the central bank governor have both rejected the allegations, denying that the central bank had stepped in and saying Farnood and Fruzi had stepped aside in line with new financial regulations.

Date created : 2010-09-08

  • AFGHANISTAN

    Central bank freezes former Kabul Bank executives' assets

    Read more

  • AFGHANISTAN

    Kabul Bank: Where business and political ties bind

    Read more

  • AFGHANISTAN

    Karzai scraps guns for hire, but where do the gunslingers go?

    Read more

COMMENT(S)