Where will Karzai turn for the best advice?
Afghan bank chiefs removed over 'crony loans' fears
Afghanistan's authorities have ousted the managers of the country's biggest bank to try and prevent a collapse due to toxic property investments and murky loans to politically powerful customers, it has been reported.
Hamid Karzai personally approved the intervention to prevent a meltdown at Kabul Bank which could send shock waves through the Afghan economy.
Sher Khan Farnood, the chairman, and his chief executive Khalilullah Frozi were replaced by staff from the Afghan central bank this week.
The government acted after apparently unearthing evidence of massive off-the-book loans to influential power brokers and the company's own executives.
The banks finances have also been badly hit by disastrous property investments with depositors' money in Dubai. Liabilities are reported to far outweigh assets. Mr Farnood, a world-class poker player, was ordered to hand over £100 million of apartments and villas in Dubai which he had purchased with the banks money for figures including Mahmoud Karzai, the president's brother.
Haseen Fahim, brother of vice president Mohammad Qasim Fahim, has borrowed tens of millions of pounds from the bank the Washington Post reported.
Afghan bank chiefs removed over 'crony loans' fears - Telegraph