SEDPI once again proved the effectiveness of its capacity building services after a partner microfinance institution (MFI) detected and solved fraud in its ranks. SEDPI delivered Technical and Mentoring Assistance (TAMA) to its partner MFI. TAMA is delivered on a mentor-learner approach as SEDPI social entrepreneurs closely supervise and monitor an institution’s progress towards sustainability. MFIs that undergo TAMA show marked improvement in their financial performance and organizational development.
According to the institution’s internal auditor, TAMA helped a lot in detecting fraudulent activities. He particularly identified several procedures like zoning and color-coded bookkeeping system (CBS) as the most helpful in their crusade against fraudulent activities in their institution. SEDPI also assisted the MFI partner in crafting policies to mitigate the risk as well as put in place systems and policies to avoid fradulent events to happen again.
“It’s really helpful because it becomes easier for us to track down the performance of our account officers in collecting loans. Through zoning, a single account officer does not handle an account alone because there will be rotations from time to time” the Auditor expressed, as he explains how the fraudulent activities were traced and discovered.