KATHMANDU: Nepal Rastra Bank is not the only authority that has been investigating into the irregularities at Nepal Development Bank. The Commission for the Investigation of Abuse of Authority has also been looking into the irregularities at the long-troubled bank.

“We will soon summon the board members of the NDB in connection with the irregularities at the bank,” acting chief commissioner of the CIAA Lalit Bahadur Limbu informed this daily today. According to Limbu, the CIAA has been investigating into irregularities in loan issuance and recovery.

The central bank has already decided to take the NDB for liquidation, claiming that the deposit of common depositors worth Rs 300 million was in peril. It has also sought clarification from the board members of the bank.

Shareholders of the troubled bank recently said they were preparing to move the CIAA seeking its investigation into the irregularities at the bank.

“We have already begun investigation into the irregularities in bank management. We are primarily focussing on the issuance of loans and non-recovery of the loans,” Limbu added. He also said the CIAA would seek explanation from the board members before deciding on the issue.

The NRB has accused NDB’s chairman Amar Gurung and former chairman Uttam Pun of involvement in irregularities at the bank. “The NRB is taking several aspects into account. Our investigation is focussed on irregularities in issuing loans and recovering them,” Limbu added.

The NDB had a total deposit of Rs 720 million as of mid-March. The major depositors at the bank — the Employees’ Provident Fund and Nepali Army — are likely to lose their deposits. Despite taking initiative in improving the financial health of the bank as asked by the central bank, the board members had moved the court and had succeeded in getting a stay order against it.

The central bank had declared NDB a ‘troubled bank’ in 2007. It had also directed the bank authorities to reduce its negative capital fund, appoint professional chief executive officer and improve internal management.