On October 26, Nepal Police’s Central Investigation Bureau arrested Suman Kharel, manager of Sindhu Bikash Bank, Dolalghat Branch. Kharel allegedly embezzled bank deposits to the tune of Rs 179 million. Kharel’s brazen embezzlement has raised questions about the bank’s security protocols.
An investigation by Arthasarokar has revealed how Kharel went about siphoning off millions from the bank’s books without raising suspicion. The branch was run by three staffers, one office assistant and two security guards.
When customers deposited money in their accounts, the staffers would make an entry in the bank’s system and put the money in its vault. The money was then to be deposited at the bank’s account at NCC Bank (as it is a bigger bank with better security).
However, Kharel, who assigned himself the duty of depositing the money at NCC Bank, would go around town lending the money to local businessmen for hefty commissions. He would always go to the bank unaccompanied so that other staffers didn’t find out what he was up to. The report says that Kharel tampered with the bank’s security cameras and even deleted recordings to hide evidence of this alleged crime.
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Soon the bank realized that deposits were never made to the NCC account and that deposits from the Dolalghat Bank were unaccounted for. After a team from Kathmandu visited the branch, the bank lodged a complaint with the Central Investigation Bureau. Kharel has confessed to his crime. The CIB is investigating whether this was a lone wolf incident or whether bank officials higher up were also involved.
CIB has only recovered Rs 2.2 million from Kharel and his aides.
The bank has, however, downplayed the issue saying that incidents like these happen all the time and the depositors’ money is safe. An official said that the bank conducts regular monitoring and checks of its branches. But the whole process had been on hold due to the Covid-19 pandemic. The official said the bank is fully cooperating with the investigators.
The central bank has been silent on the case and told the bank to provision its losses.
