Shocker: Obama refuses to bail out a bank...
... whose CEOs committed accounting control fraud. Oh, wait.... In Afghanistan:
The memorandum from USAid, part of a report into the Kabul Bank by the government watchdog the Office of Inspector General, says: "The massive fraud was a criminal act by the chairman of the board and the CEO, aided and abetted by other senior managers and board members."
Faked loan documents were created for fictitious companies registered at the Afghan Investment Support Agency, with funds "diverted to these individuals for their personal use", it alleges.
And it notes that, in addition to oversights by Deloitte, which failed to spot and report warning signs of fraud, a team from PwC didn't identify any fraud at Kabul Bank and gave it "a clean bill of health" – something that "may have acted to delay understanding of the gravity of Kabul Bank's true financial condition both among the examination staff and the international community", according to the document.