Afghan Security Forces Beat Angry Customers to Prevent Run on Kabul Bank
September 8th, 2010Via: Guardian:
Afghan security forces used batons on unruly customers scrambling to withdraw their savings today from the country’s biggest bank, which is mired in a scandal of corruption and mismanagement.
Kabul Bank’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 ahead of parliamentary elections on 18 September.
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 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 Kabul Bank.
The central bank on Monday ordered the assets of Kabul Bank’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.
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.
