Karzai Accuses Western Accounting Firms For Kabul Bank's Turmoil

By ETHAN Markoff

AFGHANISTAN NEWS - President of Afghanistan Hamid Karzai Monday has blamed Western financial firms for corruption and disability to recognize the problems of Kabul's largest bank. It is reported that some Afghan officials have already traveled to Washington to present their plan to decimate the bank.

At a news conference, President Karzai consolidated depositors of Kabul bank about the safety of their money and asked for prosecution of foreign accounting firms along with those shareholders who still to pay illegitimate loans.

He blamed international organizations and foreign firms who took millions of dollars to improve the banking system, hoaxed their job. He further said the accounting firms provided the Central Bank with inaccurate information and cheated Afghanistan government.

He stressed on three firms: Pricewaterhouse Coopers, Deloitte and Bearing Point for the reason of turmoil of Afghanistan's largest bank. It is noted that one of the affiliates of Pricewaterhouse Coopers performed an audit on the bank and after three months trouble started brewing. Other two firms Deloitte and BearingPoint had a contract from the United States Agency of International Development to help Central Bank to evaluate and betterment of banking system.

Afghan officials who have gone to Washington, are expected to present a plan to the International Monetary Fund and the World Bank so that the Central Bank can recover from some loss. The plan includes selling off assets from borrowers who still to pay their loans. The plan also have suggestion for a buyer for the working parts of the institution, for example, distribution network for government salaries.

It is appeared that President Karzai speech aimed to make people prepare for the bank's dismantling. The speech also sounded like his earlier ones about Western interests, and particularly American interests, had harmed Afghanistan.

The blame game is on from both sides. Some Western officials suspected a bribery case where bank's financial situation was erased by PricewaterhouseCoopers. Some also believed the bank's shareholders, all of whom are Afghans bribed the foreign accounting firms to whitewash the facts.

An European diplomat warned that Mr. Karzai’s frequent bashing would be prove to be fatal, especially in Europe where people were reluctant to support the war and taxpayers could quickly turn against it.

“The appetite of the taxpayers and the governments are going to be very little, especially since this appetite is not getting good news from the theater,” the diplomat said.

Mr. Karzai in recent times frequently bashed the Western countries for the Afghanistan turmoil situation, spending billions of dollars on the country and risking soldiers. In a recent public appearance he also questioned about NATO involvement in Afghanistan. However, he later clarified his remark was specific as he believed to cease military operations to avoid civilian casualties.