Audit – Meghraj Bank hits back at PwC claims

Meghraj Bank has hit back at last week’s resignation by its auditor PricewaterhouseCoopers over undisclosed directors’ loans and difficulties in auditing offshore connections.

In a strongly worded statement from its directors, the Asian-owned bank brushed aside resulting question-marks over its future and claimed it had given PwC details of the loan which led to its resignation.

It also stated that the directors had taken these matters into consideration when approving the accounts. The bank said: ‘The $1.92m loan referred to, and which the shareholders state was not connected to their interests, has since been repaid by the borrowing client.’

It added: ‘An internal enquiry conducted by Meghraj’s chief executive identified no other loans deemed to be connected to the shareholders.’

Meghraj also said it had undertaken a review of the operating controls and compliance over the last two years and ‘was disappointed that PwC appeared unable to recognise this.’

PwC made no comment, but Meghraj said it is close to announcing a new auditor.

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