The auditors of
SKS Microfinance have 'identified' 156 cases of alleged
cash embezzlement by some of its employees, who conned the firm to the tune of Rs 1.60 crore during 2010-11.
According to the company, the auditors have identified as many as 156 cases of cash embezzlement by its employees, aggregating to Rs 1.60 crore during the financial year.
"We have been informed that 52 of these employees were absconding. The outstanding balance (net of recovery) aggregating Rs 96.34 lakh has been written off," said company auditors S R Batliboi & Co in the annual report.
INTERVIEW: Vikram Akula on SKS' Andhra troubles The services of the concerned employees involved in the fraud have been terminated and the company is in the process of taking legal action against them, the auditors said.
The auditors have also brought under its lens 205 such cases where loans were disbursed to non-existent borrowers on the basis of fictitious documents created by SKS staffers, aggregating Rs 4.50 crore during the financial year.
The company had to write off the outstanding loan balance (net of recovery) aggregating Rs 3.54 crore. Besides, 47 cases of impersonation in borrowing loans from the lender to the tune of Rs 1.38 crore were also reported during the year, the report said.
SKS Microfinance is pursuing the borrowers to repay the loan amount, while the outstanding loan balance (net of recovery) aggregating Rs 63.86 lakh has been written off, it said.
ANALYSIS: Can Akula bring SKS back on track? "The net impact of frauds comes to around 0.07 per cent of the total loan amount disbursed during the year. The company is working toward reducing this percentage by making process improvements, covering the losses by having an adequate insurance policy and by increasing opportunities for direct contact with our borrowers.
"During the year, the company has recovered an amount of Rs 0.96 crore against fraud amount written off in the previous years," SKS Microfinance said.
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