Discrepancies at Nouvobanq will not affect operations or stakeholders – CBS |14 September 2011

Speaking to the local media yesterday afternoon at the CBS premises, Pierre Laporte said the incident has been placed in the hands of the police for investigation.

The CBS reported on Monday that in August this year, during a spot-check examination at Nouvobanq -- which is the country’s second biggest bank – examiners had noticed certain inconsistencies, more precisely where the amount of money in the counters did not match what was recorded in the books.

“Since people interviewed could not give a satisfactory explanation as to the discrepancies, the matter was brought to the attention of the management,” he said.

“From our analysis, the Nouvobanq management was not aware of the irregularities until we had raised the issue with them.”

Although an exact figure of the money missing was not disclosed on account of the ongoing police investigation, Mr Laporte said it was both in Seychelles rupees and foreign exchange.
“It is a sum that will not affect the bank’s operations, clients or other shareholders in any way, and people should not panic and move to withdraw their money from the bank over the incident.”

Mr Laporte added that although the Nouvobanq discrepancies took place at supervisory and not management level, CBS has given directives to them to implement remedial actions, such as to make stronger internal controls to ensure that such an incident is not repeated.

“The bank’s management has also taken certain internal, disciplinary measures as well, although procedures dictate that the matter is handed over to the police,” he said.

Mr Laporte appealed to other financial institutions, including other banks, to ensure that money is not taken from the float, even though with promises of being replaced later on.

“This is a practice that has taken place many times and the culprits are either caught red-handed or later discovered when internal audits are done,” he said.