KATHMANDU, July 9: Nepal Rastra Bank (NRB) has formally requested police headquarters, the Revenue Investigation Department (RID) and the Inland Revenue Department (IRD) to investigate and take action against the promoters of troubled Nepal Development Bank (NDB) on the charge of embezzling Rs 1.08 billion. [break]
NRB has filed separate charge sheets against NDB patron NDB Uttam Bahadur Pun, who previously held the positions of chairman and managing director of the bank, and incumbent chairman Amar Gurung, along with past and present board directors, advisors, the managing director and chief executive officer and other officials.
The central bank has stated that these officials committed crimes under Clause 95 of the NRB Act 2001 and embezzled bank assets and cash, which is a crime under Clause 1 and 2 of the Civil Code (Fraud). NRB has sought action against the culprits as per Clause 96 of the NRB Act and Clause 4 of the Civil Code.
“Those officials abused their authority to take illegal financial benefit, while causing serious damage to the financial health of the bank and ultimately pushing it to bankruptcy,” says a statement from NRB.
Uttam Bahadur Pun (right) and Amar Gurung.
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The bank management had repeatedly ignored directives issued by the central bank, said NRB in its charge sheet, and added that NDB first overvalued collaterals to issue excessive loans to Holyland International School, Gorkha Hydropower and Cine-Sound Industries among others, but acquired the collaterals at under-valued rates. The bank management was also involved in disposing of those non-banking assets in a non-transparent way.
The managing director of the bank had held his position by falsely claiming to have the required academic qualifications, issued loans to non-viable firms and misused the financial resources of the bank. According to NRB, NDB management also hoodwinked depositors and investors and swindled Rs 360.57 million.
Likewise, Pun and Gurung had direct involvement in Nepal Cooperatives Limited, National Multi-purpose Cooperatives, Global Trading and Engineering Investment, Hesse International, International Foundation for Health and Medical Sciences, and various manpower, real estate and housing companies, it is stated.
