Police action against financial crimes

Thu, May 12, 2011 12:00 AM on Others, Others,
KATHMANDU, May 12:
Nepal Rastra Bank (NRB) has authorised the Nepal Police to initiate action against the cases of financial irregularities that are being investigated by the central bank.

Nepal Share Market and Finance Company’s former executive chairman Yogendra Shrestha will be charged with offenses of embezzling and misappropriating funds as per the Banking Offenses and Punishment Act,” said spokesperson of the central bank Bhaskar Mani Gyanwali.

The financial crime of this stature can attract a sentence up to three years. NRB has already frozen the bank accounts, shares and other fixed and non-fixed properties of Shrestha, his family and that of around a dozen board members and executives after they were found to be involved in financial irregularities. “They are also not allowed to travel abroad until the investigation is over,” he added.

Along with taking loans from his own finance company in fake names, former chairman Shrestha was also found to have misappropriated Rs 200 million of Rastriya Beema Sansthan.

“If the need arises, the central bank will liquidate their property to pay off the liabilities of the finance company,” Gyanwali said, adding that the central bank has already directed the finance company to follow the instructions under Prompt Corrective Action directives. “If the finance company follows the directions of NRB now, it can revive as the situation of lending is not much bad.”

This is the second such case of chairman being involved in siphoning off the funds of the financial institutions that had corroded financial institutions’ financial standing.

Source: THT