Latest news with #InternalAuditDepartment
IOL News
07-08-2025
- Business
- IOL News
KwaDukuza Municipality dismisses call for EPWP audit amid ghost workers allegation
While the DA has claimed there may be ghost beneficiaries in the Expanded Public Works Programme, KwaDukuza Municipality has dismissed calls for an audit. Image: File KwaDukuza Municipality has dismissed the need for an audit of its Expanded Public Works Programme (EPWP) after the DA raised concern about 'ghost beneficiaries'. DA KwaDukuza caucus leader Councillor Privi Makhan raised the party's concerns on Tuesday. 'It has come to our attention that there are growing allegations of ghost EPWP beneficiaries and unions allegedly soliciting councillors for EPWP placements in favour of their own politically connected deployees,' said Makhan. She urged the municipality's Internal Audit Department to investigate EPWP appointments for the 2024/25 financial year and submit the findings to the Executive Committee or Full Council. 'Transparency is non-negotiable,' she said. In response, the municipality stated that it had received no complaints or evidence of irregularities that would justify an audit. 'KwaDukuza Municipality's Internal Audit has not received any complaints and has conducted no investigations relating to the EPWP recruitment process,' the municipality said. Regarding the DA's call, the municipality stated: 'The authority to commission an investigation into any perceived maladministration or wrongdoing vests with the Municipal Council and/or the Municipal Manager. Procedurally, a councillor cannot instruct an official to conduct an audit or an investigation of any kind as there is no empowering provision in law or policy that empowers a councillor to do so.' The municipality further explained that the EPWP, as a poverty alleviation programme, is coordinated 'through the Office of the Speaker, in consultation with the ward councillors'. THE MERCURY
Hi Dubai
16-07-2025
- Business
- Hi Dubai
DEWA Honoured with 3G Digital Transformation Award for Excellence in Internal Audit Innovation
Dubai Electricity and Water Authority (DEWA) has received the prestigious '3G Championship Award for Digital Transformation 2025' in recognition of the innovative advancements made by its Internal Audit Department. The award was presented as part of the Global Good Governance (3G) Awards , organised by UK-based financial advisory firm Cambridge IFA, and announced during the ceremony's 10th annual edition held in Brunei Darussalam. This international accolade comes after a comprehensive evaluation by Cambridge IFA, which verified DEWA's adherence to global standards of governance and its significant progress in digital transformation. DEWA's Internal Audit Department stood out for its implementation of advanced analytics and AI-driven tools, enhancing the transparency, efficiency, and effectiveness of auditing processes. Saeed Mohammed Al Tayer, MD and CEO of DEWA, received the award at the authority's headquarters, accompanied by Ahmed Hassan Mohammad Noor, Vice President of Internal Audit, and the department's team. 'The award reflects our commitment to the highest standards of transparency, integrity and institutional governance… Adopting innovation across DEWA's areas of work has consolidated its position as one of the best utilities worldwide,' said Al Tayer. The Global Good Governance Awards, managed by Cambridge IFA, recognise government bodies, private organisations, and NGOs that prioritise governance, sustainability, and ethical leadership. DEWA's win highlights its forward-thinking approach to auditing and its broader efforts to embed digital transformation across its operations. With this recognition, DEWA reinforces its global standing as a utility leader that not only provides essential services but also sets benchmarks in governance, digital innovation, and responsible management practices. News Source: Emirates News Agency
Time of India
21-05-2025
- Business
- Time of India
IndusInd Bank posts record Rs 2,329 cr Q4 loss amid deep cleanup, leadership crisis
Fraud-hit IndusInd Bank on Wednesday posted a record net loss of Rs 2,329 crore for the March quarter, its worst-ever performance, after the lender took a series of one-time hits to clean up its books and recognise past accounting lapses. Tired of too many ads? go ad free now The heavy quarterly setback followed deep-rooted governance failures, incorrect reporting of derivatives, and misclassification of microfinance assets, PTI reported. Fresh slippages soared to Rs 5,014 crore, with Rs 1,800 crore emerging from misclassified stress in the microfinance book now recognised as gross non-performing assets (NPAs). Additional deterioration was noted in the two-wheeler loan portfolio. The overall gross NPA ratio jumped to 3.13% as of March 31, from 2.25% a quarter ago and 1.92% in the same period last year. The March quarter results reflect the fallout from a whistleblower complaint, which led to internal audits and forensic reviews. The bank acknowledged a Rs 1,960 crore hit from wrongly accounted derivative trades and reversed Rs 674 crore of cumulative interest income recognised incorrectly across FY25. A further Rs 172 crore was disclosed as fraud, where employees had falsely reported the sum as fee income in the microfinance business. An additional Rs 595 crore in 'unsubstantiated balances' in other assets, flagged by the Internal Audit Department, was set off in January against 'other liabilities'. These lapses prompted the resignation of MD & CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April, following allegations of insider trading and leadership failure. Tired of too many ads? go ad free now The board has since appointed veteran banker Sunil Mehta in a non-executive role, who is overseeing the transition. 'It is unfortunate and painful to see such lapses in governance. All the issues have been identified, addressed and disclosed,' Mehta told analysts after the earnings release. 'We start FY26 with a clean slate.' Mehta added that the bank is in the final stages of selecting a new CEO and is seeking a candidate with 'strong ethical foundations.' He also confirmed that the central government has been informed about the lapses and that accountability will be fixed. Despite the steep losses, the management insisted that the underlying business remains strong. For FY25, net profit dropped by 71% to Rs 2,576 crore from Rs 8,977 crore in FY24, while provisions surged to Rs 7,136 crore from Rs 3,885 crore. Net Interest Income fell to Rs 19,031 crore from Rs 20,616 crore a year earlier. The core net interest income for Q4 declined 43% year-on-year to Rs 3,048 crore as net interest margins narrowed by 200 basis points to 2.25%. The bank's corporate loan book shrank 16% sequentially to Rs 1.43 lakh crore, which management called a tactical move to retain liquidity buffers. Other income also plunged 72% to Rs 709 crore in the March quarter. Moody's had recently downgraded the bank's standalone credit profile to 'ba2' from 'ba1', citing governance and internal control weaknesses. The global agency also revised its outlook on the bank to negative. As a response to the lapses, the bank has appointed PwC and Grant Thornton to assess the damage and conduct forensic audits. PwC pegged the impact of misreported derivative trades at Rs 1,979 crore as of June 2024. IndusInd said it will continue strengthening its internal controls and oversight mechanisms. Looking ahead, the bank plans to shift focus to secured consumer and small business loans while adopting a cautious stance on corporate lending. Despite the setbacks, deposit levels remained stable though the share of low-cost CASA deposits declined to 33%. The capital adequacy ratio stood at a healthy 16.24%, with core tier-1 capital at 15.10%, which the management said is sufficient to support future growth. IndusInd Bank shares closed 1.39% lower at Rs 771.10 on the BSE on Wednesday.
Observer
19-05-2025
- Business
- Observer
SAI marks audit awareness month
MUSCAT: The State Audit Institution (SAI) joined institutions and organisations from around the world in celebrating "Internal Audit Awareness Month,' which falls on May every year. This annual occasion aims to highlight the importance of internal audit in enhancing transparency and efficiency within institutions. It affirms the pivotal role that internal audit undertakes in strengthening governance, managing risks, and ensuring compliance with regulations and standards. Commenting on the occasion, Imad bin Abdullah al Shanfari, Director of the Internal Audit Department at SAI, stated that internal audit departments serve as a safety wall and the first line of defence in the financial and administrative operations of both government and private institutions. He noted that the primary objective of internal audit is to provide independent and objective assurance that the institution's risk management, governance and internal control processes are functioning effectively, thereby ensuring the institution's ability to achieve its goals. Al Shanfari pointed out that the importance of internal audit lies in its role as a key element institutions rely on to ensure the efficiency and effectiveness of financial, administrative and operational processes. Through internal audits, officials can identify gaps that may affect performance, enabling them to take corrective actions in a timely manner. Internal audit is also an important part of governance as it helps enhance transparency and ensures that all operations are conducted in accordance with the established laws and regulations. Furthermore, Al Shanfari stressed that fully leveraging internal audit to improve organisational performance requires implementing practical changes based on audit findings. This is accomplished by acting on the recommendations provided by internal auditors, which help institutions enhance processes, reduce costs and improve efficiency. - ONA
Economic Times
15-05-2025
- Business
- Economic Times
IndusInd Bank clarifies on new accounting irregularities, says Rs 674 crore 'incorrectly recorded as interest'
IndusInd Bank's internal audit revealed a Rs. 674 crore misrecording of interest over three quarters of fiscal year 2025, which was fully reversed in January 2025. Additionally, unsubstantiated balances of Rs. 595 crores in 'other assets' were offset against 'other liabilities'. The bank is strengthening internal controls and addressing accountability following a whistleblower letter and anomalies in its derivatives portfolio. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The IndusInd Bank on Thursday said that the lender's Internal Audit Department report showed that it had incorrectly recorded Rs 674 crores as interest for three quarters of fiscal report, submitted on May 8, also found unsubstantiated balances aggregating to Rs 595 crore in "other assets" accounts of the bank, the Hinduja Group-owned lender said."The IAD has since submitted its report on May 8, 2025. Based on the report, it is noted that a cumulative amount of Rs. 674 crores was incorrectly recorded as interest over three quarters of FY 24-25, which was fully reversed as on January 10, 2025," said the bank in a stock exchange new accounting lapses were reported by The Economic Times in its May 15th edition. ET had reported that a whistle‑blower's letter had flagged new anomalies. The letter raised concerns about a Rs 600-crore discrepancy in the accrual of interest income in the bank's microfinance portfolio, and an instance of inappropriate relationship between a senior executive and an employee, who was sacked and subsequently rehired by this executive."The IAD has submitted its report on May 8, 2025 that there were unsubstantiated balances aggregating to Rs. 595 crores in 'other assets' accounts of the Bank. These were set off against corresponding balances appearing in 'other liabilities' accounts in January 2025," said the disclosing the discrepancies, the lender said that the audit department has also examined the roles and actions of key employees in this context. "The Board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate," said IndusInd Bank through a stock exchange findings add to IndusInd's growing woes and come just weeks after its CEO and deputy CEO resigned following a derivatives accounting lapse that hit the bank's net worth.
