By S. Srinivasan, principal correspondent of The Telegraph [Delhi, All India Radio General Overseas Service in English, 1010 GMT, 13 Aug 91].

Billed as the largest bank fraud in the world's financial history, the affairs of the Bank for Credit and Commerce International--BCCI--are getting curious. The allegations run from the Bank having links with gun runners, drug dealers, CIA operatives, and nuclear weapons component smugglers, to name a few. The investigators all over the world are now coming out with startling details on the $20 billion bank which was founded by a Pakistan national, Agha Hasan Abedhi,in 1972 with dreams of making it into the biggest bank of the world in 25 years. Abedhi himself is unable to say anything on his shattered dream as he is fighting to recover from brain damage caused by repeated heart attacks. The Karachi-based banker founded the bank in Luxembourg with 47 branches, 24 in Britain and others in 12 countries. The BCCI Overseas has 63 branches in 28 countries which include India. The bank has spread its tentacles from Britain to the United States where it is said to have secret stakes over several banks which were being run as its front companies.

The Indian operations of the BCCI has also kicked up a big controversy. The three major allegations against the bank, which has emerged in the Indian newspapers, are that the bank, in collusion with the key officials and politicians, have diverted tens of millions of dollars from India's economy into its accounts; that the bank was used to fund purchase of arms and terrorist operations, and the bank has misused American aid money for funding Pakistani nuclear programs. The U.S. Senate committee is investigating an allegation that the bank, in collusion with top industrialists and officials, have diverted illegally millions of dollars from India. The revelation was made by private investigator Mr. Michael Hershman, of the Fairfax fame. Mr. Hershman, who has worked with the Indian Government, has said that he had collected as far as in 1986, but did not pursue any more as the U.S. revenue officials did not take any interest in the matter. The modus operandi, according to him, was that the slush money was moved through companies. The second allegation is over discovery of some indiscriminating documents from the Bombay branch of the bank which were antinationmal in character.

Thirdly, doubts were expressed whether the funds were used to promote Pakistan's clandestine nuclear program. The news reports quoting the Wall Street Journal have alleged that a retired Pakistani General Enamul Haq was arrested by German authorities on July 11 the at Frankfurt Airport as he arrived with a phony passport. According to the investigators, the general was accused of evading American customs laws in shipping sensitive and strategic materials. The report says that the documents in the case show that these were financed by units of BCCI.