KATHMANDU: The Central Investigation Bureau (CIB) of Nepal Police has apprehended Manoj Neupane, the Deputy Chief Executive Officer (CEO) of Prabhu Bank, on charges of alleged misappropriation of loans.
Neupane, who previously served as the CEO of Century Commercial Bank in 2021, was taken into custody on Tuesday morning. Sources indicate that he is among 12 individuals arrested for further investigation.
The arrest follows a request from the Nepal Rastra Bank, citing suspicions of loan misappropriation during Neupane’s tenure at Century Commercial Bank. Notably, Neupane is also the nephew of former Prime Minister Madhav Kumar Nepal.
The CIB sources confirmed that the investigation involves allegations related to loans acquired by Neupane during his time at Century Commercial Bank.
The Nepal Police acted upon the request of the central bank, aiming to delve into the circumstances surrounding the financial transactions.
The banking sector has faced increasing scrutiny in Nepal regarding financial irregularities and mismanagement.
Authorities are working to maintain transparency and accountability within financial institutions to safeguard the interests of depositors and maintain the integrity of the banking system.
Prabhu Bank, where Neupane currently serves as the Deputy CEO, has not issued an official statement regarding the arrest. However, the incident raises questions about corporate governance and risk management practices within financial institutions.
The arrest underscores the commitment of regulatory bodies to address financial improprieties and ensure that individuals responsible for any wrongdoing are held accountable.
The investigation will likely involve a thorough examination of financial records, loan disbursements, and compliance with banking regulations.
It is crucial for the banking sector to maintain the public’s trust by upholding ethical standards and adhering to regulatory frameworks. The case will be closely monitored as authorities work to establish the facts and determine any potential legal consequences for those involved.
As the investigation unfolds, the banking industry in Nepal may see increased regulatory measures and scrutiny to prevent future instances of financial misconduct.
The incident serves as a reminder of the importance of robust governance structures and risk management practices within financial institutions to maintain stability and public confidence.