MDD was hired to investigate the provision of various spurious loans authorized by the branch manager of a micro-finance institution. In addition to the loans, the branch manager had stolen a large amount of cash.
Our role involved the review of the branch manager’s employment records, an examination of the financial institution’s pre-loss internal controls and procedures to document how the fraud came about, a review of guidelines set out by the State on checks and balances required for financial institutions, review of support for the claimed cash theft and funds flow, review of the relevant loan application and verification processes and underlying supporting documentation. We also reviewed efforts by the financial institution to recover funds from the perpetrator and also identified potential further recovery opportunities that existed at the time. We also reviewed the financial institution’s post-discovery amendments to its internal controls and procedures to prevent incidents of a similar nature.