By Zainab. joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – Sierra Leone Commercial Bank Limited has been queried by the Auditor General over Collateral Valuation Reports and the non-compliance with the Bank’s Risk Acceptance Criteria.
Collateral property should be valued by a professional valuer in order for the bank to determine the maximum credit facilities they can grant a customer. During an audit review, it was noted that the Bank had approved facilities for White pole Limited for Le2.4 billion without reassessing the value of the submitted collateral.
The Auditors recommended that the Bank should obtain the valuation report regarding the collateral security provided by the customer, and ensure that it is properly valued by a professional appraiser.
In their official response, they stated that the revaluation report had been obtained and is available for verification. However, during audit verification, the valuation report for White pole Limited was not submitted. The issue the Auditor General says is unresolved.
Auditors also observed that a facility of Le17.8 billion was granted to Jolaks Manufacturing during the year. The required documentation (Financial Statement) for prior approval, was not submitted. It was recommended that Management should strictly follow applicable preapproval documentation, as minimum standards, in the lending process.
The Bank’s response to the audit query was that they maintain audited accounts for customers.
During the verification, the audited Financial Statement for Jolaks Manufacturing was not provided. The matter is therefore unresolved. ZIJ/10/1/2023