Even though the Chairman of the Oversight Committee, Kebbe Kouroma has expressed optimism about financial progress in the bank, Rokel Commercial Bank has a long way to go in its debt collection activities.
Out of the Le144 billion loan out by the bank only Le10 billion to date had been collected which make up a mere 7% of its outstanding bad debt. Minority shareholders originally held 49% of the bank’s shareholding up to and including 31st of December 2014.
Following the huge loss, which the bank incurred in its operation of 2014, all their retained profits were wiped away and the bank’s capital fell below the statutory minimum of Le30 billion to Le2.9 billion.
As a result of this, in an effort to ensure that the bank meets the statutory minimum capital, the Governmental of Sierra Leone paid in Le 60 billion to sustain the bank; in the process new shares were issued to government and in the process Government of Sierra Leone shareholding increased from 51% to 65%, simultaneously reducing the minority shareholding from 49% to 35%. The account presented at the Annual General Meeting (AGM) shows a loss of Le 99billion, but those accounts reinstated and the loss increased to Le103 billion, which caused an increase in audit charges.
From 2014, the bank adopted a more cautious policy of investment by investing Le100billion more in government security.
Even though the returns are low but they are assured. This is the step towards stability.
Friday December 11, 2015
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