Fraud of millions of rupees hit Pakistan’s local microfinance bank

• The suspected scam has been going on from February 2017 until now, as per a police report.
• Police believe that some of the suspects have abused their superiors login to get the access they needed to carry out the scam.

The European multinational telecommunications company has started investigation of fraud in local microfinance bank involving hundreds of millions of rupees.

As per sources the State Bank of Pakistan inspection team landed there this week, said sources on condition of anonymity. Meanwhile, the sources at the company revealed that it’s non performing loans have gone from Rs500 million to Rs5 billion.

Meanwhile, spokesperson of the bank said that the bank informed about the scam to the head office of the communication company. "We alerted the headquarters and the internal investigations are ongoing," spokesperson told Business Recorder, while refraining from more comments.

Meanwhile, as per Verdens Gang, a Norwegian tabloid newspaper among the employees involved in the suspected scam is a branch manager and several bank officials. The suspected scam has been going on from February 2017 until now, as per a Pakistani police report.

According to the police report, they have cheated the money by creating fake borrowers and false and incomplete loan applications, which they had approved and granted in collaboration with each other.

Police also believe that some of the suspects have abused their superiors login to get the access they needed to carry out the scam.

"In this way, they have scammed themselves to 514 million Pakistani rupees," police said. In total, the police, together with an internal investigation commission, established the company after they suspected the scam, found a total of 1638 false loan applications.

Police believe the operation appears to have been extensive. "The suspects acted as an organized criminal group and inflicted significant financial losses on the company," police said.

The company has previously confirmed to VG that they have established an investigation group that has looked into the case since October this year.