Another employee of Prabhu Bank has been taken into custody on charges of banking misconduct. Sujin Shakya, known as Sugen, who served as the head of the bank’s remittance department, was arrested from Lalitpur-11 on Mangsir 24 after the High Court allowed police to issue an arrest warrant.
According to the initial investigation, Shakya is suspected of misusing the legal system that allows pre-funding for remittance transactions. He is accused of releasing pre-funding money in a way that benefited Prabhu Money Transfer, a company linked to his interest group, while causing financial loss to Prabhu Bank.
Losses above Rs 1 billion
Officials say Shakya released a large amount of pre-funding money without following rules and without charging the required interest. This allegedly caused losses exceeding Rs 1 billion to the bank.
Investigators also claim that Prabhu Management Pvt. Ltd. was made a super agent against regulations and was given advance funds for remittance operations. Even after remittance activities with the company were stopped, the money was reportedly allowed to remain in use for a long period, causing an additional loss of Rs 893.19 million to Prabhu Bank.
Probe linked to CEO
The investigation has also extended to the bank’s CEO, Ashok Sherchan. Authorities suspect attempts to hide or cover up the irregularities by channeling loans in a questionable manner. The CEO is currently under investigation for possible involvement in banking offences.
