Inspections show wrongdoings at Khalifa

Testimonies made by suspects and witnesses involved in the Century Trial showed that Khalifa Bank was inspected by the Bank of Algeria which found out wrongdoings in management.

Scandals revealed by inspections

Since the Khalifa Bank started operated in 1998, it had been inspected periodically by the Bank of Algeria as part of banks activity follow up.

The first wrongdoing was detected in 1999. Managers were changed and shares were attributed to Abdelmoumene Rafiq Khalifa without a previous authorization from the Bank of Algeria.

A second inspection carried out in 2000 showed that monthly accountancy data were not registered. Khalifa Bank’s agencies were not provided with information system.

Kiramane called Khalifa for settlement but …

Inspections continued and showed mysterious management in Khalifa Bank and its financial relation with Khalifa Airways.

Abdelouahab Kiramane, the commissioner of the Bank of Algeria at that time summoned Khalifa to his office in 2006. He ordered him to settle his bank situation and respect inspection reports. Yet, Khalifa turned a deaf ear and suspicious transitions continued.

The 2001’s sixth inspection showed wrongdoings about loans granting operation. Khalifa Bank made a false statement to inspectors. The following inspection operation found out that foreign trade department constituted a real danger on the bank. A report was submitted to the new commissioner of the Bank of Algeria. Yet, Khalifa Bank continued operating and reports could not end its activity.

10 inspections before investigation

By 2002, the number of inspections reached 10 and confirmed the wrongdoings.

In November 2002, the Bank of Algeria froze Khalifa’s foreign trade.

The last inspection showed that Khalifa Bank is an “organization out of the law.”

In spite of all those reports, the bank continued operating for 5 years until its sudden collapse in 2003.