Sudan general inspector reports 82% decline in bank embezzlements

December 23, 2009 (KHARTOUM) – The number of cases of public funds embezzlement in the Sudanese banking sector declined significantly year over year, according to a report issued this week by the office of the General Inspector.

The independent Al-Sahafa newspaper which obtained the report said the findings showed that embezzlement during the period from September 2008 to August 2009 amounted to 3.1 million Sudanese pounds in comparison with 17.4 million Sudanese pounds in the past year, a decrease of 14.2 million Sudanese pounds.

The highest percentage of these cases existed at the Agricultural Bank in South Darfur (49%), This was the result of forgery in the debit account cards of clients and bogus additions in the daily general ledger. This was followed by the Savings and Social Development Bank, the branch of the industrial area in Omdurman (23%); 10% at the Cooperative Islamic Bank, Karima Branch, and 9% at the Savings Bank in the Red Sea Province, this being the result of forgery in branch accounts in favor of individuals without an actual deposit having been made or transferring amounts bigger than the amounts deposited.

The General Inspector faulted the weak system of supervision and internal controls on the part of both the bank and the clients. This led to forgery by adding fake deposits in current accounts then withdrawing them or carrying out fake transfers between branches in favor of individuals.

Only 10% of the stolen money was recovered, the report said, adding that the cases of embezzlement in the banks were four, two of them still investigated, one being reviewed by court, and the fourth already tried.

(ST)