02 Feb 2016

KMF investigates loan fraud in Zhambyl region

In Merke district of Zhambyl region the microfinance organization KMF supports law-enforcement authorities investigation of fraud by the company's loan officer in the amount of more than 53 mln. KZT.

The loan officer Elmira Utebayeva using her official position and citizens' trustfulness disbursed loans for Merke village residents in Zhambyl region. According to the borrowers, they voluntarily handed over part of received funds to Utebayeva who used it for personal needs.

This fact was revealed in KMF in January, 2016. At this moment 110 peoples did file a complaint with law enforcement authorities in respect of the fraud fact. At present company's employee involved in this fact was putted on the wanted list. The command investigation is proceeding in the company, outlet manager and other employees responsible for supervision were dismissed.

«Now we are finding out the exact number of victims, we are working jointly with the police. We reported to law enforcement authorities necessary data on this woman for search as well as other information necessary for investigation,", - tells Kurmanbek Bimurzayev, deputy director of Zhambyl branch LLC "MFO "KMF". - In fact, we faced confederacy between the loan officer and borrowers. Victims voluntarily received the large loan amounts for themselves and voluntarily transferred them to the stranger. Also there is a very low financial literacy and consciousness of victims.

Ongoing telephone surveys of clients previously conducted on target use of the loans didn't reveal such complaints.

KMF has a multi stage verification policy of loan operations. There is a SMS-notification for all borrowers warning on overdue payment. Within the monitoring the credit controller’s work, whose task is to assess loan officers' work, whether he had any complaints on service quality as well also on company employees' work. In order to receive client's feedback the communication via trust box, call-center was enhanced and also complaints reception is possible on the company's website.

The internal audit service regularly conducts surveys of clients and visits clients to check the compliance with loan receiving procedure. At all offices of the Company there are announcements forbidding to clients to transfer received loan to the loan officer for any occasions: on credit, for loan repayment, etc.