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Roberta Katunga, Senior Business Reporter
THE disposal of immovable assets and recovery of outstanding loans in the five banks which were closed for various reasons in the past few years is taking longer than anticipated by the Deposit Protection Corporation due to an illiquid market, an official said.
DPC chief executive officer Mr John Chikura said lack of security for facilities granted to debtors had negatively impacted the rate of recoveries coupled with external factors and legal processes.
“The disposal of immovable assets and recovery of outstanding loans has taken longer than initially anticipated. This is mainly attributed to external factors such as the illiquid market and legal processes which have to be followed in the litigation of clients who owe the bank,” he said.
Mr Chikura said preferred creditors such as the Zimbabwe Revenue Authority (Zimra) and National Social Security Authority (Nssa) would be paid first in full as required by law with concurrent creditors set to be paid on a pro rata basis depending on the rate of recoveries.
“Only preferred creditors, that is, pension contributions for bank employees, National Social Security Authority contribution arrears and Zimbabwe Manpower Development Fund will be paid in the First Liquidation and Distribution Account,” he said.
Speaking on Allied bank, Mr Chikura said all the immovable assets of the bank consisting of land and buildings with a book value of $16,7 million were in dispute with the matter in the courts.
He said of the total value, only $802 448 had been recovered by March 2016 with $217 851 collected from various debtors, $182 387 from disposable assets and $402 209 from Government stocks and claims on the RBZ.
“The first meeting of Allied Bank creditors was held on 24 June 2015 and 93 claims valued $9,7 million were provisionally accepted while 15 claims valued at $356 196,30 were rejected for non-appearance.
A second meeting of creditors was held on 25 February 2016 for consideration of the Liquidator’s Report and further proof of claims, and claims worth over $6 million were provisionally accepted by the Master of High Court,” he said.
Meanwhile, $6,4 million was availed through the Deposit Protection Fund for compensation to 54 909 depositors who had balances equal to or below $500 in the closed banks.
The DPC urged depositors to submit their claims to the corporation for reimbursement as the funds were readily available with more than $3 million having already been paid out as at mid March.
AfrAsia bank was placed under liquidation in April last year while Allied bank’s shareholders surrendered the banking licence to the Reserve Bank of Zimbabwe and it was closed in January last year.
Trust Bank was closed by RBZ in December 2013 and is under provisional liquidation with the case still before the courts while Interfin was first placed under curatorship in June 2012.
The curatorship period lapsed in December 2014 and the bank was subsequently closed by RBZ and later placed under provisional liquidation in 2015.
Royal Bank of Zimbabwe was closed in July 2012 and placed under provisional liquidation in 2013. Final liquidation was done in November 2014 while Genesis Investment Bank was closed in June 2012.
Bongani Ndlovu
Online Reporter