‘AMRC recovers millions from Key Stone Bank’

Feb 5, 2021, 9:49 AM | Article By: Adama Tine

The Management Board of the Assets and Recovery Corporation (AMRC), while presenting their Activity Report and Financial statements last week Thursday for the year ended 2018 and 2019 before the legislators of the Public Enterprise Committee (PEC) of the National Assembly, disclosed that the corporation had managed to recover a sum amounting to D39,128,795.97 out of the total debts of the former Key Stone Bank, which amounted to D665,840,802.60.

According to them, out of the total recovered amount, a sum of D34,216,827.00 was paid to the Central Bank.

They added that an amount of D37,233.00 was collected with an outstanding balance of D17,327,410; that a total of D24,397,913 loan was given as development loan without recovery in 2019 and another loan of D2,628,580 was recovered under managed fund, reflecting an outstanding balance of D26,846,663 as at 31st December 2019. The total outstanding loans for commercial, development and managed funds as at 31 December 2019, stands at D68,571,987.

They explained that increase in the outstanding balance in 2019 was the result of a refund of D38 million recognised in 2017, from the sale of one of the forfeited properties; that the sale took place in 2017 and the matter remained in court until 2019 when it ended and the ruling was made against the AMRC to refund the said amount and properties to the buyer.

They also informed the committee that the corporation collected and recovered 80 percent of The Gambia Commercial and Development Bank’s loan portfolio which amounts to over D226 million from various accounts.

Augustus Prom Jr. of the Augustus Prom Auditing Firm, informed the committee that they have audited the financial statement of the AMRC and in their view, the financial statement has given a true and fair view of the financial position of the corporation as at 31 December 2019, prepared in accordance with the companies Act 2013 and the AMRC Act 1992.

He added that while auditing the AMRC’s financial statement, they noticed a total of ex-staff loans of D1,674,782; other receivables amounting to D668,000 and a creditor’s balance of D197,500.

He said the implications of these include among others, the corporation maintaining a creditor or liability balance that has not moved for a period of two years, bringing into question the validity of the said creditor balance.

He added that the Corporation’s management should make further follow ups on the ex-staff outstanding loan balances which he said will improve the cash flow status of the corporation and should also look into the creditor balance to ascertain the validity in order to ensure that the closing creditor balance outlined in the financial statement is not misleading to the users.