Bank of Maldives (BML) has decided to conduct a forensic audit in relation to the Maldives Marketing and Public Relations Corporation (MMPRC)’s embezzlement case.
The bank announced this via a statement on Monday, stressing that it “will never support financial irregularities in any form.”
While BML made the announcement, there have been allegations that its staff were involved in the MMPRC scandal; the bank had in July denied these allegations.
BML’s executive board made the decision to conduct a forensic audit to clear its name despite the fact that the various audits conducted this far “have not highlighted any failure on the part of the bank.”
“The Board feels that it is in the best interests of the Bank and the country to engage an independent external party to conduct a detailed investigative audit into the transactions relating to this matter”Bank of Maldives
International consultancy firm, Deloitte Singapore, has been hired for the job.
The bank said that Deloitte will review all its interactions with MMPRC and SOF Pvt Ltd -the private company used to funnel the funds.
“This will include conducting a full examination of all transactions, including endorsed cheques, as well as the reporting and control procedures in place at the time. The bank’s current policies and procedures will also be reviewed to evaluate our strength in terms of risk management and compliance with international standards”Bank of Maldives
BML noted that the review reflects the determination to the recently appointed Board and CEO “to ensure that the Bank of Maldives is seen as a trusted institution with the highest levels of integrity.”
It added that the review is also “part of a wider series of measures which will include recruiting a new Chief Risk Officer to focus upon risk and compliance policies.”
BML is to engage with the relevant authorities after the conclusion of the audit.
While BML condemned implications that its staff were involved in the MMPRC graft, it had gone to the Civil Court in July, requesting to rule that the bank was not under any obligation to provide information to investigative bodies unless a court order was presented.
The bank has faced scrutiny since it was revealed that it had authorized “non-negotiable cheques” to SOF.
