The recent Auditor General’s report has revealed a number of inappropriate measures at one of the state owned banks, Rokel Commercial Bank (RCB).
For which the Audit Report indicated that such activities could put the bank into liquidity if their (Audit) recommendations are not adhered to.
That according to a policy of RCB, it is required to obtain audited financial statements from customers who apply for a loan above Two Hundred Million Leones (Le200,000,000) before being granted such facility.
That some customers were granted over Le200,000,000 credit facility without any audited financial statements from them.
That Olimod School Outfitters, City Garden Clinic and Gum Valley Water Company were granted loan facility at the tune of Le500 000,000, Le400,000,000 and Le500,000,000 respectively without audited financial statements.
That whereas City Garden Clinic and Guma Valley Water Company have completed their payment on their payment on 2nd May and 2nd July 2018 respectively, Olimod School Outfitters loan payment remains unresolved.
That part of the policy of the bank also required individuals requesting facilities from the bank to provide a letter of undertaking from their institution of employment in order to guarantee the bank of their financial status, but that this policy was also breached by RCB by granting a customer a loan facility of One Hundred and Thirty Million Leones (Le130,000,000) without a letter of undertaking.
That their review of cash security revealed that the total of Four Hundred and Fifty-One Million Leones (Le451,000,000) for 15 customers has expired, but that the bank was still maintaining it in its books, adding that some of these issues were raised during the previous audit but the bank did not act on them.
The report also indicated that there were accumulated savings overdrawn balances throughout the months of January, February, June, July, November and December for the period reviewed and account balances were in the negative.
That they uncovered significant difference between Commission on Turnover (COT) computed as against that of the Univbank Application and the Trial balance.
That adequate procurement procedures were not followed by the bank in purchasing a bank asset amounting to the tune of Le673,529,495.
That during a review of RCB’s clearing account held with the Bank of Sierra Leone, they noted that a number of reconciling items from prior years as far back as 2013 are yet to be cleared, adding that a sample of 73 transactions with the total outstanding balance of Le3,970,516,329.54 is yet to be cleared.
For which the Audit Report recommended that going forward, management should ensure that the statements are reconciled on a monthly basis in order to show the true and fair position of the year-end balance.