Massive Rs.380 m fraud reported at NDB

A massive fraud of approximately Rs.380 million involving some bank employees was reported on Thursday by the National Development Bank (NDB). The bank said the final figure is expected to be substantially higher.

In an intimation to the Colombo Stock Exchange, the bank, a listed entity, said the fraud has been committed by some employees in connivance with a third party or parties, and the matter has been referred for investigation and necessary action to the law enforcement authorities.

“The bank is presently unable to quantify the exact extent of this fraud and is awaiting feedback from the ongoing criminal investigations and the internal inquiries. Although the bank has preliminary indications of approximately Rs.380 million, it is of the view that the final amounts could be substantially greater. However the bank does not wish to speculate on the final outcome and assures the public and its stakeholders that it will make more detailed disclosures when it receives fuller reports,” the statement said.

The bank assured its customers that all deposits and account balances remain safe and ‘fully’ secure with no impact on the bank’s operations on an ongoing basis.