Fund yet to be legally constituted: Parly hears

it signed with Old Mutual last year.
This was revealed by CABS managing director Mr Kevin Terry when he appeared before the Parliamentary Portfolio Committee on Industry and Commerce yesterday.
Mr Terry said the money was meant to assist all companies in the country contrary to the belief that it is for firms operating in Bulawayo and Matabeleland region.
“In a strictly legal sense there is no Dimaf yet. What has taken place is that sometime last year Old Mutual indicated that they wanted to be involved in resuscitating certain businesses and contribute to the revival of the economy in Zimbabwe,” he said.
Mr Terry said a MoU was signed in which Old Mutual and Government would each contribute US$20 million towards the establishment of the fund but Government was yet to meet its obligation.
“CABS has Old Mutual deposits but does not have any Government funds nor does it have neither the Government guarantee nor the agreement between the three parties, effectively there is no fund,” he said.
Mr Terry said CABS and Old Mutual had decided to start the programme with the US$20 million from the insurance company while waiting for Government to meet its obligations.
“What has happened is that Old Mutual and CABS said we would start the process but effectively there is no Dimaf. We are acting in risk because there are no Government funds nor Government guarantee, we are acting in good faith,” he said.
Mr Terry said of the US$20 million provided by Old Mutual, CABS had approved loans valued at US$3,9 million for 10 companies drawn from various areas countrywide with six companies having already received their money.