United Dev Bank honchos nabbed

KATHMANDU, JUN 01 -

Police on Tuesday arrested former executive chairman of Bara-based United Development Bank Rabindra Bahadur Singh and director Radha Krishna Amatya for their alleged involvement in misappropriation of bank funds.

A team of Nepal Police’s Central Investigation Bureau (CIB) arrested Singh and Amatya from their houses at Dallu and Battisputali, respectively, in Kathmandu.

Nepal Rastra Bank (NRB) has charged Singh and Amatya with misappropriation of Rs 276.21 million and Rs 67.5 million, respectively. Because of their wrongdoings, the central bank had to declare United crisis-ridden two times in four years.

The central bank has told the government to take action against them under the Banking Offense and Punishment Act. They may be slapped with a fine equivalent to the value of the collateral security and an imprisonment for up to five years, depending upon the degree of offense as per the Act.

It is the second case of detention of top banking officials after the arrest of DB Bamjan, former executive chairman of Gurkha Development Bank, on May 19 for a similar offence.

The police, of late, have become active in the fight against banking fraud amid criticisms that the government is not serious to take action against bank officials involved in embezzlement. “We are giving high priority to controlling financial crimes,” said DIG Rajendra Singh Bhandari, chief of CIB.

Bhandari added that CIB is working closely with NRB to bring such people to book. However, several fraud bank officials, including Uttam Pun of Nepal Development Bank, former executive chairman of Samjhana Finance Shyam Bahadur Shrestha and former executive chairman of Nepal Share Market and Finance Yogendra Prasad Shrestha, among others, are still at large.

Bhandari said people involved in banking offence were successful in fleeing as agencies concerned did not inform the police on time. “We are holding discussions with NRB to end such lapses,” he said. The central bank has also taken the police’s move positively. “It is a good beginning,” said a senior NRB official. The central bank had asked the police to take action against the duo last February.

According to the central bank, Singh misappropriated Rs 67.5 million that was in the bank’s call in advance account without maintaining book of accounts. After withdrawing Rs 66.2 million from the call in advance, he converted non-existent amount into share capital through the decision of board. He also took Rs 14 million in advance without disclosing any purpose. Singh also lent Rs 58.28 million by creating fake loanees to adjust the misappropriated amount and rescheduled loans worth Rs 46.21 million that went to banks directors against the central bank’s directive, according to the central bank.

The NRB has also accused Singh of transferring United’s deposits of Rs 24 lying in Annapurna Development Bank to the account of Buddhi Bahadur Shrestha with his signal signature. He also did not follow the NRB directives while lifting United’s crisis-ridden status four years ago.

Amatya has been charged of misappropriating the amount lying in the bank’s call in advance without maintaining book of accounts.



Posted on: 2011-06-01 09:06
PRITHVI MAN SHRESTHA, http://www.ekantipur.com/2011/06/01/business/united-dev-bank-honchos-nabbed/334967.html