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Sections News Editorial/Opinion Cover Choice Arts & Life Business Politics Sports   Subscription Form Click here       Daily Independent Online.         * Monday, July 26, 2004. Banks record N9 billion fraud By Sanya Adejokun Senior Correspondent, Abuja Banks lost N9.383 billion last year in 850 fraud and forgery cases helped by weak or non-existent board oversight. A rising culture of prompt rendition of accounts and reports to the regulatory authorities did not deter bank officials, among them accountants and executive assistants, from leading the trail of fraudsters and forgers. The Nigeria Deposit Insurance Corporation (NDIC) which disclosed the figures in its 2003 annual report, also stated that “weak internal control systems had facilitated fraud and forgeries in some insured banks”. Fraudulent transfers and withdrawals and presentation of forged cheques topped the rank of malpractices. The worst perpetrators were “officers, accountants, executive assistants, clerks and cashiers …. Some boards had apparently abdicated their supervisory roles to their managements and were often unaware of the poor financial conditions of their banks”. The boards of the affected banks were accused of failing to establish effective internal control and sound management information systems, which in turn encouraged criminality. In 2003, the NDIC created a new unit, the Special Insured Institutions Department (SIID), to facilitate oversight of community banks and primary mortgage institutions whose depositors would start to benefit from protection “hitherto only enjoyed by depositors of universal banks”. The NDIC realised N3.984 billion from the sale of assets of closed banks and recovered N4.895 billion from debtors of the banks. Recovery of debts of liquidated banks “has been difficult in the past years because of prolonged legal battles and the fact that many of the loans were improperly granted and unsecured”.       Copyright� 2002. All Rights Reserved Independent Newspapers Limited Block5, Plot 7D, Wempco Road, Ogba, P.M.B. 21777, Ikeja, Lagos State, Nigeria. www.independentng.com e-mail: [email protected]

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