H&B branch manager caught in fraud case

KATHMANDU, DEC 14 -

In an yet another banking fraud case, a branch manager of H&B Development Bank has been found issuing good for payment cheques in collusion with two other individuals, causing a loss of Rs 22.2 million to the bank.

H&B’s Kuleshwor branch chief Niraj Nepal, who allegedly issued good for payment cheques illegally, is now under the police custody. Police said the Patan Appellate Court permitted them to take him under custody for an additional 10 days for further investigation.

According to DSP Dhiraj Pratap Singh, spokesperson for the Metropolitan Police Range, Hanumandhoka, the bank has filed a complaint against Nepal, stating he issued good for payment cheques worth Rs 22.2 million illegally. Nepal issued the cheques in collusion with Manoj Chaurasia of Bairawa, Saptari, and Jaya Kumar Yadav of Basantapur, Rupendehi, who are at large, according to the police.

In a press statement, the police said the cheques were issued against different account having no balance. “We are investigating the scale of misappropriation and motive behind it,” said Singh.

The development bank also said they have started an internal investigation into the matter. “We are yet to find out how many good for payment cheques were issued. The exact amount of misappropriation will be ascertained after the cheques are returned back from the market,” said Jasoda Sainju, chief executive officer of the bank.

According to Sainju, the embezzlement was exposed during a sudden inspection carried out by the bank’s top brass. In a notice issued by H&B on Thursday, it has asked its customers dealing with the Kuleshwor branch to get their bank statements and tally them.

The Nepal Rasra Bank is also closely monitoring the incident. Increasing incidents of frauds with the involvement of bank employees in recent days have worried the central bank. Earlier, such fraud cases involving employees were exposed in two commercial banks.

“Such incidents are happening due to weak internal control system in banks and financial institutions,” said NRB Spokesperson Bhaskarmani Gnawali, adding the central bank would issue a stringent directive to improve internal control system in BFIs.

Source: The Kathmandu Post