Just as it was captured in previous audit reports, one of the government owned banks, Rokel Commercial Bank (RCB) is till on the habit of giving out loans without following standard procedures.
The recent report by Audit Service Sierra Leone which is charged with the mandate of looking into how efficient and effective public money is being spent, has revealed that the Rokel Commercial Bank gave out bad loans.
The Auditor General’s report maintained that the RCB issued out loans to some institutions without obtaining updated audited financial statements in order to determine their financial standing adding that the unaudited financial statements.
That even though the lending policy of the bank requires the bank to ensure that all non-personal borrowing customers to submit audited accounts for facilities in excess of Le200 million that was not carried out by the RCB.
Despite recommendations by the Audit Service to the RCB on the issuing of risky loans in previous audits, the bank keeps giving them out just like they gave out millions of Leones in previous years.
According to the recent report more billions of Leones were given out by the bank surpassing previous loans that were given.
As always, the report cautioned that the management of RCB should ensure that due process and all the relevant requirements such as audited financial statements are obtained and made available for all corporate customers before issuing out loans to them, which they stated will safeguard the bank from giving out bad loans.
More details on this in subsequent editions.