SME Bank ignored loan rules

AUDIT firm Deloitte uncovered a systemic breaking of the law and other irregularities at the troubled SME Bank, instances which prompted the Bank of Namibia [BoN] to fire the top management and the board directors.

Among offences that Deloitte highlighted, is that the state-funded SME Bank broke the law by not informing the BoN about two loans which exceeded a limit required for disclosure to the industry regulator. The two loan transactions valued over N$60 million were given to supermarket chain Woermann Brock, and Max Media Conglomerate, the owner of the Confidénte newspaper. Deloitte's 77-page report was commissioned by SME Bank chief executive Tawanda Mamvuma on 10 August 2016 to review the extent of loans that were not being repaid, ghost workers, the bank's funds, company policies and controls at the scandal-hit financial institution.