RS Development Bank Officials to Be Heard

A public hearing will be held at the RS Parliament involving the RS Investment Bank

The Review Board of the Republika Srpska (RS) Parliament has scheduled a public hearing to be held on Oct. 8 of management of the Investment Development Bank (IRB), into questions regarding the results of a negative evaluation of the bank’s 2008 performance by the RS Office of Chief Auditor, according to Parliament’s legal department.

Among many irregularities cited by auditors were a lack of internal controls in IRB and six of its funds. They found their financial performance was not fair and truthful.

Auditors pointed out that the IRB’s loan department has failed to follow existing procedures and ask the Center for Risk Management for opinions on projects’ feasibility and whether their final beneficiary—the bank through which the loans were made. The IRB’s management have not adopted strategy developed by the bank’s own Center for Risk Management.

The results of the hearings before the Parliament’s Review Board will be passed on to the full Parliament for further discussion.