The Fiji Development Bank had weak internal control on loan files and anomalies were noted in the application of government subsidy.
This, according to the Auditor-General’s 2019-2020 Audit Report on Public Enterprises and Other Entities that was tabled in Parliament last Thursday.
“Audit review of loan files revealed the following anomalies around internal control — security value as per loan appraisal/decision form did not match to the value recorded in the Business Management System (BMS),” the report said.
“Security value of the loan was not updated in the BMS.”
The OAG audit in 2020 found anomalies in the application of government subsidy.
“The percentage of subsidy is based on the credit risk grading of the applicant.
“We noted instances where the government subsidy provided to customers were higher than the eligible rate.
“This resulted in customers qualifying for lower interest rate.”
The OAG said the bank agreed with the auditing findings and admitted that the officers had not followed the circular instruction issued by the bank.
“The bank further confirmed that regional managers and the branch managers would be held accountable for such oversight.”
