Dar es Salaam. Tanzania Women Bank (TWB) has lost mandate to operate as a bank as
its capital has fallen below the legal threshold, the Controller and Auditor
General (CAG) has found out.
In a latest report which was tabled in the parliament last week, CAG
observes that audit found out that the bank’s core capital had fallen below the
minimum requirements contrary to Regulation 5 and Regulation 9 of the Banking
and Financial Institutions (Capital Adequacy) Regulations.
This is just a number of flaws which CAG has established around operations
of TWB.
Among other things, CAG audit has established that loans amounting
Sh655 million was disbursed by the bank without confirming existence
of the borrowers.
On the other hand, the CAG latest report which was stabled in the
Parliament last week indicate also that securities for the loan amounting to
Sh200 million had not been registered with appropriate authorities.
“I also noted that loans of Sh330 million were issued to customers
whose collaterals were not valued while Sh335 million were loaned to borrowers
whose business licenses had expired,” reads part of the report.
Source: The Citizen
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