Stanbic Bank headquarters along Ali Hassan Mwinyi Road, Kinondoni District in Dar es Salaam. PHOTO | FILE
By Alex Bitekeye,The Citizen Reporter
In Summary
Dar es Salaam. Managers at
Twiga Bancorp, were yesterday taken to task over ‘ghost customers’ whose
loan interest was shown as amounting to Sh584 million that could also
not be accounted for.
The managers, who appeared before the Public
Accounts Committee (PAC), could not produce a list of the individuals
loaned by the bank nor prove that the said interest could be vouched
for.
In the end after grilling by the committee members
led by the vice chairman, Mr Deo Filikunjobe, the government owned bank
board chairman Prof Amon Mbelle admitted there were serious managerial
problems at the bank.
At that juncture, Mr Filikunjombe ordered all the
managers out of the meeting and remained in a closed door session with
Prof Mbelle. The media was also locked out and could not be told later
the outcome of their meeting.
The committee earlier rejected an appeal from the
bank for more funding from the government. The members noted the bank
had obtained an adverse mention by the Controller and Auditor General.
According to the CAG’s report under review, the bank has (in books) a
total of Sh584 million which cannot be traced physically as interest
collected from ghost loanees. The CAG found there were no records to
trace those loaned or those paying the interest. Mr Filikunjombe said
the bank had requested for more funds from the government to raise its
capital.
He said it was shocking the management earned a
disclaimer opinion by the auditors after they “could not understand the
financial reports which was presented by the management.”
This was also supported by a PWC audit Manager Ms
Martha Lucas that there are no details which will help the bank to
collect the interest, “We noted that there is a receivable of Sh584
million, but there is no analysis of those who secured loans which
resulted in that profit,” said Ms Lucas
No comments :
Post a Comment