VANCOUVER, B.C. - British Columbia's Financial Institutions Commission-the government's watchdog agency for financial institutions-placed Khalsa Credit Union under administration March 6, alleging conflicts and questionable practices by the credit union's president.
The commission said Ripudaman Singh Malik, who headed the credit union's board for 14 years, inflated the value of some of his property to qualify for a high-risk loan and tried to borrow money from credit union members after looking at their confidential account information.
According to Canadian Press, the $110 million-credit union was raided last year by the special RCMP task force investigating the 1985 bombing of an Air India jet, which killed 329 people. Last month, a British Columbia provincial court judge heard how the wife of a suspect in the Air India bombing case used two undeclared accounts at Khalsa Credit Union to defraud provincial welfare of more than $100,000.
Canadian Press further reported that in August 1999, a British Columbia woman identified by the Indian government as a terrorist, was found murdered in Punjab with weapons and Khalsa Credit Union documents.
Joe Corsbie, who heads the Stabilization Central Credit Union, has been appointed administrator of Khalsa CU in Malik's place.
