ISLAMABAD: According to an official investigation, the staff of the state-owned bank was found involved in embezzlement of millions of rupees of Prime Minister’s Youth Business Loan Scheme by opening bogus accounts.

It is the first of its kind fraud in the government’s flagship loan programme unearthed in the Mardan region of NBP.

Area Credit Manager of National Bank of Pakistan (NBP)’s Mardan district, Shah Nawaz Khan is found to be involved in the fraud and was running a ‘parallel bank’ and withdrawing money without authorisation from the bank accounts.

Khan, with the help of his brother, withdrew money from the accounts of beneficiaries of the loan scheme.

“Most of the entries have been routed through A/C No 4045242751 titled Spinkai Builders and the signatory authority of the account is Asif Nawaz Khan, who is reportedly the real brother of the main accused Shah Nawaz Khan,” revealed the report.

NBP Mardan Region Head Naeemullah Jan confirmed that Khan was running a parallel bank and he had been suspended. However, he refused to further comment on the matter.

Investigators have recommended that the Central Unit of Fraud/Forgery (CUFF) of NBP should carry out a comprehensive probe to ascertain the exact quantum of losses. Sources said so far Rs8 million worth of fraud had been detected.

PM Sharif launched the scheme in December 2013 with an aim to provide loans of up to Rs2 million to the applicants and requiring a total of Rs100-200 billion.