Daily The Business

FINCA Bank ex-BM arrested in Rs 14.3m fraud

A number of loans were issued on fake documents

M J Hayat

LAHORE: Federal Investigation Agency (FIR) Monday arrested EX-BM of
FINCA Micro Finance Bank in a fraud of Rs 14.3 million as the division
bench of Lahore High Court dismissed the interim bail petition of the

As per details Yasir Irfan Qazi Ex-BM-FINCA Microfinance Bank Ltd,
Raiwind Branch and other accused employees of the Bank were working at
FINCA bank Raiwind Branch at Raiwind Lahore as their last posting.

During an inspection of FINCA Microfinance Bank Ltd, Raiwind Branch by
Credit Risk Department of the Bank, it came to the knowledge of the
Management that loans were being disbursed by filling the loan
application forms with false information and the above mentioned staff
of the bank was involved in pocketing of cash and bribery for approval
of loans.

On the inquiry from the field, it came to light that a number of loans
were issued on fake documents and the persons shown as customer did
not know about the loan

The bank also received complaints from different people who alleged
that the above mentioned staff received their loan applications, got
them duly filled with their thumb marks and signatures and then told
them that their loan applications were declined, however, on the
verification of the Bank of certain existing loan files in their name,
they learnt about the pending loan issued in their name.

Similarly certain applications were filed against the above mentioned
staff in which it was alleged that they got issued loan of large
amounts in their name whereas they did not need such large amount and
the above mentioned staff pocketed the extra amount on the assurance
to the complainant that they would pay hack the extra amount
themselves and the complainant would have to pay only the amount
received by them.

On a detail scrutiny of the loans, the Bank found certain procedural
misconducts and omissions in the record of loan tiles and account
opening forms of the customers.

In some cases, certain portions of the loan applications were left
blank and signatures or thumb marks were not obtained as required
under policy and manual of the Bank and in sonic cases cheque books
were not duly entered as no signature of the person issuing the cheque
book were available in cord.

It was revealed to the bank that these employees were involved in
fraud with the customers, committed criminal breach of interest for
the duties assigned to ‘them as employee of Bank, prepared false and
forged documents for getting loan and used those documents for the
issuance of loans out of which they consumed , major part themselves
illegally, unlawfully and fraudulently.

During the investigation by the Bank initially 49 incidents of fraud
and misappropriation of loan amount were reported to the Bank which
reported to FIA with the complaint.

As per audit of the bank, it has surfaced that the above accused(s)
have caused financial loss amounting to Rs. 14.340.000.

The complaint was investigated by Malik Sikander Hayat Khan AD FIA SBC Lahore.

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