ISLAMABAD - Massive fraud unearthed in Telenor Microfinance Bank in Pakistan.
Telenor is investigating suspected extensive fraud in its microfinance bank in Pakistan, according to news reports from Norway.
Verdens Gang (VG), a Norwegian tabloid newspaper, and Dagens Næringsliv (DN), a Norwegian business newspaper, both reported on the ongoing case earlier this week.
In an article published on 7 December, DN reported that the Telenor Microfinance Bank says it has been scammed for around NOK 30 million, or around PKR 514 million. The bank has identified 14 people, 12 of whom are local bank employees, and two of whom are external loan agents.
The DN managed to obtain access to a police report in Lahore. According to the article, there was a hearing on Saturday in Lahore where Telenor bank’s lawyer, Waheed Riaz, and several of those accused of fraud appeared. The meeting, however, was postponed.
According to the police report, the loan agents were recruited by the branch’s staff, who created 1638 false loan applications.
According to Riaz, the accused constructed ‘ghost clients’ to create fake loan applications. The bank employees then approved the loans and transferred money.
The accused have denied the allegations.