Page 82 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020
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2020 2019
Short-term employee benefits 9,177 7,679
Long-service leave - -
Post-employment benefits - -
Share-based payments - -
9,177 7,679
2020 2019
Islamic Financing to employees
Balance at 31 December 19,598 10,269
Profit earned on staff loans during the year amounted to GMD2.548 million (2019 D1.923 million)
(b) Islamic Financing to directors and their associates
The bank has entered into transactions with its directors and their associates as follows:
2020 2019
Agib/Quantum Partnership 68,281,176 110,906,378
Qell Company Limited 41,042,023 45,370,203
Quantumnet 6,927,562 16,848,070
Qmoney 109,805
Net amount at 31 December 116,360,566 173,124,651
Included in Islamic financing and other receivables is D116,360,566 (2019 – D173,124,651)
advanced to companies where relationship exists by virtue of shareholding and/or representation in
the respective companies’ board of directors. The advances are at arm’s length in the ordinary course
of business and are adequately secured.
All the transactions with the related parties with the exception of key management personnel (as
reference above) are priced on arm’s length basis and have been entered into in the normal course
of business.
34. Going Concern
The Directors confirmed that it is appropriate to adopt the going concern basis in preparing the
Financial Statements.
35. Subsequent events
The Bank has no events after the financial position date which would materially impact on its
financial position or results.
36. Litigation against the bank
The Al-Ihsan fraud case took place in 2016, where one of their employees made unauthorized cash
withdrawals amounting to D1.5million. In a bid to recover the stolen cash, Al-Ihsan Charitable
Foundation for Education and Development has taken legal action against the Bank and the case is
yet to be settled at the courts. Even though the probability of paying the claimed amount is very low,
the Bank made a full provision of the D1.5million since 2018.
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Annual Report and IFRS Financial Statements for the year ended 31 December 2020 81
