Afghan president’s brother made $800K in Dubai house deal using loan tied to Kabul Bank

Mahmood Karzai profited on deal tied to Kabul Bank

DUBAI, United Arab Emirates — Afghan President Hamid Karzai’s brother says he made at least $800,000 by buying and then reselling a high-end Dubai villa using a loan provided by the chairman of the troubled Kabul Bank.

Mahmood Karzai told The Associated Press on Wednesday that he bought the house on the Palm Jumeirah in July 2007 to obtain residency in Dubai.

He is the third-biggest shareholder in the bank, which faced a bank run last week following reports of steep losses tied partly to risky Dubai property investments.

Karzai says the loan and purchase was arranged by former Kabul Bank chairman Sherkhan Farnood, but is unsure whether the money came from the bank or from Farnood personally.

Farnood couldn’t immediately be reached for comment.