CSD organises programme on internal audit system

Kathmandu, June 20

The Centre for Self-help Development (CSD) in cooperation with the Grameen Trust, Bangladesh organised a two-day programme titled ‘International Programme on Internal Audit System’ from June 18-19 in Dhulikhel, Kavre.

The programme was organised to strengthen the internal audit system of the Nepali microfinance institutions (MFIs) by keeping a proper internal control over the organisational activities, from the field level to the central level, by reducing the chances of errors and frauds, said the CSD.  

The participants were made familiar with the best audit practices in microfinance with special reference to the Grameen Bank, Bangladesh, which is considered as the pioneer of microfinance in the world.      

Chairman of CSD Shankar Man Shrestha said that the MFIs in Nepal recently had been deviating from the fundamentals of microfinance and concerned more on maximising profit thereby undermining the impact on the socio-economic upliftment of the clients.

"The picture of microfinance in Nepal seems very bright from the outside, but the situation is getting critical inside due to excessive overlapping and duplication of the clients," he said. He urged the MFIs to act promptly to correct the deviations seen in the microfinance sector.

Resource person from Bangladesh Mir Hossain Chowdhury said, “The major problem in the microfinance sector is that the real poor have been left out and the employees of the MFIs are forcing the clients towards over in-debtedness by providing loans to the clients beyond their capacity.”                      

According to the CSD, the participants were informed about the process and methodologies of Grameen Bank and were trained on the types of frauds that appear in the operations of the microfinance and remedial measures to address them.

Similarly, the participants were also briefed about the process of preparing an audit report and follow up guidelines for correspondence as practiced in Grameen Bank. During the program the participants were also oriented on the framework of the new provisions of taxation in Nepal.

Published in The Rising Nepal daily on 21 June 2019.