Case Study: The Kabul Bank Fraud

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Nasir Ahmad Mohibi Dr. Tat Puthsodary PAD 110 11/19/2014 The Kabul Bank Fraud Introduction: What was the issue of Kabul bank? Why did it collapse? And who were responsible for it? The crises in Kabul bank are very complex and profound. The case reports have reached to almost all the government departments and also have endangered and humiliated the organizers as well as all the involved people like politicians, government officials and business people (Bijlert, 2013). This incident happened in 2010 when there were talks about $300 million loss in the bank when two of the bank administrative Khalilullah Ferozi and Sher Khan Farnood were fired from their position because of negligence, however, the governor of the Central Bank of Afghanistan …show more content…

Firstly, the case has relation with the political definition of PA which says, “it cannot exist without its political context” (Shafritz, Russell and Borick, page, 6). The Kabul bank crisis too could not happen without hand from government officials and political leaders. The central bank chief and some other people who are influential and have power had managed and planned this crisis. It could not happen without big hands there were people who worked and designed this inside and outside the country in order to somehow harm the economic system of Afghanistan and wanted to play a game of making citizens rise against the government. In relation to the legal concept of PA “it is what the state does and everything is done in accordance to the law” (Shafritz, Russell and Borick, page, 11). The case of Kabul bank had many legal issues. The first one was the weakness or to say the carelessness of the previous government toward this issue, it was taken for granted by them. There was no action against the responsible people instead they were in their jobs and doing what they wanted. The second reason the case was not heard in the court can be because some of the powerful officials were involved in the scandal so the government was somehow unable to take any action against them. However, finally by the creation of the new government the guilty ones were arrested and the ones that had gone out of the country in fear of facing any charge are wanted by the Interpol Police. Lastly, the managerial concept of PA says, “it is a field of management” (Shafritz, Russell and Borick, page, 14). Nevertheless, the management of the government and the judicial branch was not well and resulted to make the legal process weaker. In the prior government the attorney general’s office and the government had not managed what to do with the in charges of the Kabul bank crisis because many of them were

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