Rokel Commercial Bank: 2023 Audit Uncovers Unsecured Loans, Fraud, and Governance Lapses

The 2023 Auditor General’s Report highlights severe financial and governance irregularities at Rokel Commercial Bank, raising concerns over its compliance with regulatory standards. One of the most alarming findings is the bank’s failure to adhere to prudential guidelines set by the Bank of Sierra Leone, particularly regarding non-performing loans. The report states that loans amounting to NLe14,462,500 were issued without adequate collateral, significantly increasing the bank’s exposure to credit risk. Additionally, loan facilities totaling NLe26,416,854 were granted without documented facility letters, further violating best practices in risk management and lending procedures.  

Governance failures were also evident in the bank’s operational structure. The Auditor General found that Rokel Commercial Bank failed to submit minutes from its Board and EXCO committee meetings, raising serious concerns about transparency and decision-making oversight. Furthermore, the bank did not have a formal interest rate policy, meaning loans were issued without a clear benchmark, exposing the institution to potential financial instability.  

Fraudulent transactions were another critical issue identified. The report uncovered that transactions totaling NLe419,228 were not reported to the Bank of Sierra Leone as required, violating financial disclosure regulations. Additionally, the bank lacked a clear policy on moratoriums granted to customers, creating inconsistencies in how loan repayment reliefs were granted and managed.  

Despite recommendations from the Auditor General’s Office for immediate corrective action, these issues remain unresolved, leaving the bank in a vulnerable financial position. The lack of collateralized loans, governance lapses, and failure to report fraudulent activities pose significant risks to Rokel Commercial Bank’s financial stability and regulatory compliance.