Afghan bank faces long lines again

Customers of Afghanistan's biggest bank lined up again Sunday in the hope of withdrawing their savings, though lines were shorter days after corruption allegations appeared in US newspapers.

Security appeared to have been stepped up at the head office of Kabul Bank, with armored vehicles parked outside as crowds thronged the banking chamber.

Many customers said they wished to withdraw their money because they had lost trust in the bank, though others said they simply needed cash ahead of this week's Eid holiday marking the end of the Muslim Ramadan month of fasting.

Waheed Shirzoi, 26, said, "I am withdrawing my money because I am taking a trip and I also believe my money will not be safe in this bank."

"I think my money will be safer in the state-run banks," he added.

The privately owned Kabul Bank has been the subject of 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 Friday for the weekly holiday, providing respite after a day of mild panic following the reports, in which the Washington Post said Kabul Bank had been taken over by the central bank.

The governor of Afghanistan's central bank, Adbul Qadir Fitrat, said Kabul Bank had not been taken over and, along with the finance minister, reassured depositors their money was secure.

On Saturday, branches across the country saw huge crowds wanting to withdraw their money, though many were also lining up to be paid, as Kabul Bank handles the salaries of hundreds of thousands of civil servants.

US newspapers, including the New York Times and the Wall Street Journal, reported 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 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 did not permit shareholders to hold executive positions.

The US Treasury Department on Saturday denied a report, also in the Washington Post, that American taxpayer funds would help bail out Kabul Bank.

AFP