Date: 3/21/2004


The recent report that London manager’s fraud costs BoI $82m may not be a simple case of fraud and could involve political pressure and if the past is any thing to go by, Congress could be the prime suspect.

The notorious Bank of Credit and Commerce International (BCCI) finally owned by the ruler of Abu Dhabi paid bribes to the family of Indira Gandhi as per the records of the U.S. senate sub-committee investigating the bank. This was one of the reasons for closing the serious cases of murder, smuggling etc against many Dubai nationals like Lootah, Galadhari, and Al-Futtaim etc

Then there is the stranger case of the late Agha Hassan Abedi, who first founded the Pakistani Bank BCCI and its involvement in drug money laundering and funding of the nuclear programme in Pakistan and its connection to Congress Party of India. . The Vatican Bank was active in Europe and America in drug money laundering, and BCCI had specialized in the Asian drug market. Abedi's reach extended to the U.S. also. He even had the former Secretary of Defense Clark Clifford as his lobbyist for a fee of nearly $100 million! This was exposed in U.S. Congressional hearings, and Clifford was disgraced.

What has this got to do with the Gandhis of India? For a start Abedi happened to be a major donor to the Indira Gandhi Memorial Foundation, later controlled by Sonia. The first Indira Gandhi Peace Prize was awarded to Yasser Arafat, with money donated by Abedi! In addition, several members of the Gandhi trusts have close ties to Pakistan. A high official of the Nehru Museum and Library is a Pakistani who claims to be a Marxist. Sonia Gandhi's close associate and official spokesman Mani Shankar Aiyar has consistently taken pro-Pakistani positions on most issues - from the Jinnah House in Mumbai to Kashmir. In one of his columns, he went so far as to suggest that Kashmir could be handed over to Pakistan with the expectation that Pakistan would help India get oil from the Central Asian Republics! The Pakistani Archives, if opened some day like the Soviet Archives, should have many interesting secrets to reveal. Not only the Congress party collected bribe from Saddam Hussein in the form of oil, but is linked to KGB for which the case is in Indian courts and with CBI. Congress may be under the control of the Italian Mafia and this could be the reason for the death of so many promising Congress politicians on Sundays which is the preferred days by Christians. Imagine what will be the reaction of the India public if the Pak secret achieves are opened and if Congress is linked to ISI of Pakistan. Many Kerala Christians in Gulf who funds the Congress Party in Kerala are also running Pakistan schools and even work as the front man for the Pak drug money. One such Gulf NRI is Sunny Varkey who lives in Dubai and runs the ‘Our own English schools and Pakistani schools’ in the gulf.

On September 22, 2002 one of the two helicopters being used by Sunny Varkey in India while on a visit, crashed in a village near Lonavla in which one Jacob Chakoria GM of his establishment was killed. Officially the accident is due to bad weather, but it is rumored that Sunny Varkey who is an ISI assest and under RAW investigation, was the target of an assassination attempt. Then there is the case of the world’s biggest audio video piracy group known as Thomson Electronics in the Gulf run mainly by two Kerala Christians sponsor many Congress politicians like Ramesh Chennithala MP. Congress politician Muralidharan of Kerala was running Hawala business in Dubai. This list is endless.

Because of these the BOI involvement may not be a simple case of a fraud by a manager, but it may involve some political involvement.

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.........London manager’s fraud costs BoI $82m

...................GEORGE MATHEW

MUMBAI, MARCH 20: 2004 In a development that could wipe out its entire third-quarter profits and more, the Bank of India has been ordered by a London judge to pay $82 million (around Rs 370 crore) for knowingly engaging in fraudulent transactions with the long-sunk Bank Credit and Commerce International (BCCI).

The same judge who, in December, had cleared the London branch of the State Bank of India (SBI) of any of any wrongdoing, came down hard on BoI. He said the bank could not sidestep responsibility for the actions of its London manager.

Refusing to accept the verdict, however, the chairman of BoI, M Venugopalan, told The Indian Express: “We have decided to challenge the ruling of the London High Court in a higher court. Our lawyers will study the verdict in detail.’’

In awarding damages of $43.2 million and accumulated interest of $39 million to BCCI’s liquidators Deloitte and Touche, Judge Nicholas Patten outlined the scheme that was hatched to defraud the depositors.

BCCI, which closed down in 1991 burning nearly a million of its customers placed six short-term deposits with BoI’s London branch between 1981 and 1985. In each case, BoI then loaned the money back to a BCCI nominee, apparently contributing to the web that ultimately bankrupted many small depositors. Such dealings allowed BCCI to show temporary improvement in its financial condition.

The judge said that BoI’s London-based manager Kamalnath L Samant knew that such transactions were being used to defraud BCCI creditors. BCCI collapsed in 1991 under a $16 billion debt.

Said Judge Patten: ‘‘It (allowing BoI to go scot-free) would allow banks such as BoI, which choose to rubber-stamp the recommendations of their senior managers without ensuring that all proper diligence has been carried out, simply to sidestep liability by relying on ineptitude.’’

In December Judge Patten had found SBI completely innocent, although it too had dealings with BCCI. ‘‘After the SBI verdict, we were too expecting a favourable judgement,’’ said Venugopalan.

Although the verdict could wipe out the bank’s entire net profit of Rs 229 crore for the third quarter ended December 2003, its chief said BoI was financially quite strong. It made a net profit of Rs 851 crore for the year ended March 2003 and its total assets were worth 76,000 crore. BoI shares the stage with some elite names. The Bank of England faces claims of $1.8 billion for its dealings with BCCI.