ISLAMABAD – Massive fraud unearthed in Telenor Microfinance Bank inPakistan.
Telenor is investigating suspected extensive fraud in its microfinance bankin 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 caseearlier this week.
In an article published on 7 December, DN reported that the TelenorMicrofinance Bank says it has been scammed for around NOK 30 million, oraround PKR 514 million. The bank has identified 14 people, 12 of whom arelocal bank employees, and two of whom are external loan agents.
The DN managed to obtain access to a police report in Lahore. According tothe article, there was a hearing on Saturday in Lahore where Telenor bank’slawyer, Waheed Riaz, and several of those accused of fraud appeared. Themeeting, however, was postponed.
According to the police report, the loan agents were recruited by thebranch’s staff, who created 1638 false loan applications.
According to Riaz, the accused constructed ‘ghost clients’ to create fakeloan applications. The bank employees then approved the loans andtransferred money.
The accused have denied the allegations.