TWIGA BANCORP TASKED OVER 'GHOST CUSTOMERS'

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.

The Citizen