InfoAnda - Afghans crowd scandal-hit bank to withdraw savings

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Afghans crowd scandal-hit bank to withdraw savings AFP - Saturday, September 4 Send IM Story Print Afghans crowd scandal-hit bank to withdraw savings KABUL (AFP) - – Branches of Afghanistan's biggest private bank were crowded Saturday morning with government employees queuing to be paid and customers wanting to withdraw their money following corruption allegations. Kabul Bank has been the subject of US newspaper reports alleging large-scale corruption by executives, though the government and central bank have said it is solvent and there is no need for customers to panic. Banks were closed on Friday for the regular weekly holiday, providing respite after a day of mild panic following the reports, which saw the Washington Post say the Kabul Bank had been taken over by the central bank. The governor of Afghanistan's central bank, Adbul Qadir Fitrat, said the bank had not been taken over and along with the finance minister reassured depositors their money was safe. US newspapers, including the New York Times and the Wall Street Journal, reported on Wednesday that the central bank had replaced the bank's two top executives -- chief executive Khalilullah Ferozi and chairman Sher Khan Farnud -- and ordered Farnud to hand over 160 million dollars' worth of luxury property purchased in Dubai for himself and for cronies. Fitrat denied the reports, saying the men had resigned voluntarily as new regulations no longer permitted shareholders to hold executive positions. Finance Minister Hazrat Omar Zakhailwal reassured Kabul Bank customers the institution was solvent, saying the administration of President Hamid Karzai gave its full backing and cash was being delivered to branches nationwide. He said 100 million dollars had been deposited in the bank to cover government salaries, which were due to be paid Saturday. Many people crowding into Kabul Bank branches in Kabul and the northern commercial city of Mazar-I-Sharif on Saturday wished to withdraw money ahead of the upcoming Eid holiday, when Muslims buy gifts, new clothes and special foods to celebrate the end of the month-long Ramadan fast. Mohammad, a 35-year-old doctor, said he wished to withdraw 800 dollars from his savings of 2,500 dollars at Kabul Bank's main branch in the capital "because Eid is approaching and I need the cash". "I don't believe the bank will go bankrupt," he said. Gul Mohammad, another customer at the head office, said he wanted to close his account, and planned to withdraw his 5,000 dollars. "I heard the government say the problems will be solved but I am still suspicious," he told AFP. Recommend Send IM Story Print News Search Top Stories Afghans crowd scandal-hit bank to withdraw savings BP spill costs hit 8 bln dlrs as crews unearth clues Petrobras sells 64 bln dlrs of stock to fund oil search Fidel Castro leads first mass rally in four years Greater clarity on climate finance at 46-nation forum More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Zeta-Jones 'furious' at late cancer diagnosis for Douglas BP spill costs hit 8 bln dlrs as crews unearth clues Israeli researchers develop promising new HIV treatment 'Prostitute' Carla Bruni deserves death: Iran media Fidel Castro leads first mass rally in four years More Most Viewed » Earth's upper atmosphere shrinking, scientists say Tiger's ex breaks her silence on sex scandal Most US students think Beethoven is a dog Unchecked migration would see Singapore swell, Haiti halve More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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