By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – As an Action Plan for the two State-owned Banks (SOBs): Sierra Leone Commercial Bank, and Rokel Commercial Bank Ltd., they are being reminded that they should make sure that financial statements produced are published.
The Bank of Sierra Leone (BSL) said it will issue a reminder to all banks that financial statements are to be published on banks’ websites. However, financial statements are currently published in widely circulated local newspapers as they say banks have challenges with maintaining a website due to technical problems among others.
The Ministry of Finance identified several enabling environment recommendations which have to do with strengthening efforts to update and enhance the overarching legal and regulatory framework for financial intermediation.
Developing a legal and regulatory framework specific to SOEs in Sierra Leone, SOBs to develop written, operative business/strategic plans, and the Government of Sierra Leone to remove Government representation on the Boards of SOBs.
To update the banks’ financial reporting systems, to ensure the independence of the Internal Audit department, to ensure that external auditing of the SOBs is done by experienced, professional, and internationally reputable firms, and to strengthen macroeconomic management to ensure reduced reliance on bank financing.
The Plan is recommending that the BSL mandate the Audit Committee to conduct a review of the reports filed by the internal auditor, however, the BSL says it will include these issues as part of their examination going forward even though this is not part of its mandate.
The Banking Act 2019 is operational and BSL has recently concluded the Prudential Guidelines 2022 which considers recent best practices relating to regulatory frameworks and this is being supported by other guidelines, for example, consumer protection, cyber security, anti-money laundering, and corporate governance.
The BSL is currently improving its capacity to implement and enforce laws and regulations with Technical Assistance from the IMF and an increase in the number of staff.
The next examination is scheduled for early 2023 but the examination of these aspects will depend on whether the Ministry of Finance and the banks have completed the framework(s) which cover the suggestions.
External auditing of the banks is currently being done by international audit companies with local representation like BDO and Baker Tilly.
Both SOBs are updating/upgrading their core banking applications which should ensure better financial reporting and monitoring. ZIJ/13/3/2023