How banks were looted in late 80 and mid 90s, An eye witness story 1. Over invoicing the cost of machinery. 2. supplier will not supply machinery with the connivance of engineers report 3. Highly over priced international tenders were awarded to import foreign machinery, a legal transaction were made to a fake company abroad. 4. Imported machinery were purchased under State bank of Pakistan local machinery discounted deals to boost local manufacturers. 5. Highly over priced raw material was imported in order to facilitate money laundering. 6. Bankers never checked credit history and ignored financial capacity of borrowers. 7. Most of the borrowers had no credibility but given billions. 8. Once all above completed, most of the industries were closed down within few months of start, because had not invested a rupee into it, instead earned millions through kick backs. 9. As a result no repayment were made and there were a pile of bankruptcy / liquidation and a huge mess to clear. 10. Most of the banks / DFIs started to crumble and within few years closed down. THE PIONEER OF THE ABOVE CYCLE WERE Zardari and Shariff.
Posted on: Mon, 15 Dec 2014 12:33:04 +0000
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