Color Guide: Development Finance Environment & Energy Training & Skill Development
MENU
← BACK TO ALL PROJECTS

Supporting credit/deposit operations, audit & control structures and governance

FPM ASBL is a not-for-profit company established in DR Congo in 2010 at the initiative of various development institutions. Its mission is to provide technical and financial support to financial institutions targeting the MSME sector in DR Congo with the goal to promote financial inclusion.

One of the institutions supported by FPM is PAIDEK, an MFI operating in the Kivu provinces of the Eastern DRC. In the framework of a project to transform PAIDEK from an NGO into a microfinance institution regulated by the Central Bank, IPC was asked to provide assist in three areas.

Advisory support on appropriate governance structures

  • reviewing the ownership structure and developing a plan for asset transfer to the commercial entity, and structuring equity and liabilities to ensure continuity in PAIDEK’s social and economic mission
  • developing a guide for PAIDEK’s management, Board of Directors and shareholders on the rights and obligations of governance entities in a corporation

Adapting lending and deposit-taking processes

  • reviewing lending and deposit-taking policies and procedures
  • developing and adapting lending policy, procedures and appraisal tools for PAIDEK’s highly diverse client base
  • developing a deposit-taking policy and a draft procedure based on the processes in place
  • reviewing existing loan and deposit products and recommending improvements to make deposit products attractive to clients, less costly to PAIDEK and make lending products more customer friendly
  • providing classroom training and coaching for loan officers, branch managers, the operations manager and the deputy general manager on using the new lending and deposit-taking policies, procedures and tools
  • improving available job descriptions for staff involved in lending operations
  • coaching the operations manager on the review of lending files requiring his approval
  • implementing a process to ensure regular follow-up on arrears by the operations manager

Reinforcing the internal control function

  • assessing internal controls and their weaknesses, and proposing different remedial options to PAIDEK’s management and Board of Directors
  • developing an audit manual outlining key procedures for auditing different functions
  • providing training and coaching for internal auditors, including audits of the lending and deposit-taking processes in branches and discussing the resulting audit reports with the responsible managers, the general manager and the Board of Directors
  • developing a risk map which includes all major processes in the institution
  • supporting PAIDEK and its shareholders in setting up an audit committee

More

About Contact