Friday, February 1, 2013

CIB arrests Pradhananga, Shrestha of Himalaya Finance

Central Investigation Bureau (CIB) under Nepal Police today arrested former chairman of Himalaya Finance Himalaya Bhakta Pradhananga and acting general manager Shyam Krishna Shrestha on charges of embezzling money from the finance company.
Earlier, the central bank had declared the finance company as a troubled financial institution after it discovered that the institution was maintaining a negative core
capital of 7.82 per cent.
CIB has been investigating against them as they have been responsible for pushing the finance company into the verge of collapse by extending illegal loans.
The finance company was also found to have kept false records of borrowers, apart from extending and renewing many loans on their own wish without any basis.
They have also been found to be issuing threats to depositors, who wanted to withdraw their money. The finance company was fooling the central bank by submitting doctored financial statements to the central bank.

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