BLANTYRE (Malawi NewsNow ) —FDH Holdings Limited, a majority shareholder in the formerly government-owned Malawi Savings Bank (MSB) says it will conduct a forensic audit as the MSB as suspects a possibility of mismanagement or fraud at the financial insititution.
Forensic audit refers to picking up the money trail and coming out with information that can be used as legal evidence.
Chief Executive Officer of FDH. Mr Thomson Mpinganjira said the group will conduct a forensic audit on the bank to detect any possible mismanagement of funds.
“The audit will ensure that if any malpractices occurred they are brought to light. We will ensure that we protect the resources of this bank and vigorously pursue anyone found to have carried out any malpractices and criminal activities that were aimed at stripping the bank of its assets,” said Mpinganjira in a statement shared with Malawi NewsNow.
.FDH anticipated about K3.2 billion into the bank to meet the requirement, but according to Mpinganjira, the recorded loss implies that the actual shortfall as at December 31 2014 is now at K6.3 billion, double the original estimate.
The bank’s assets base, however, grew by 19 percent from K40.2 billion in December 2013 to K47.9 billion in December 2014.
The bank’s customer portfolio also went up by 27 percent from K31.72 billion in the previous year to K40.38 billion by end of December, 2014.
According to MSB’s published financial results for the year ended December 31 2014, the bank recorded a consolidated loss of K2.4 billion against a K249 million profit for the year ended December 2013.
Mpinganjira said there was a lot of abuse and fraud within the system.#