adminGolden Sibanda Senior Business Reporter
THE Insurance and Pensions Commission will launch a probe into AfrAsia Bank Zimbabwe’s pension fund amid claims that Minerva Risk Solutions, which administered the closed bank’s fund has not paid affected workers. AfrAsia was closed in February this year after the Reserve Bank cancelled the financial institution’s banking licence following its struggles to recapitalise operations.
The bank was placed under provisional liquidation by the High Court on March 18, 2015. Payments commenced on March 30 2015 to depositors for balances up to $500. Depositors with larger amounts are yet to be paid.
Subsequently, the RBZ applied for liquidation of the bank to enable compensation of creditors of the bank using proceeds from assets disposal. However, the bank’s workers are yet to receive their pension money estimated at $6 million.
An industry source said problems arose when the bank closed before allegedly repaying liquidity support funds illegally taken from the workers’ pension fund.
“It’s not clear what exactly happened, but AfrAsia workers have not received their pension money from contributions made over many years.
“The affected workers have been struggling to get an explanation from the AfrAsia management who administered the pension fund from the bank’s side.”
When the bank closed, a team of trustees, headed by ex-group chief executive Mrs Lynn Mukonoweshuro as chairperson, was entrusted to wind up the fund. Other members were Mr Noel Mukutirwa, Ms Savious Mushosho, Mr Patrick Chitehwe and Mr Kenneth Kaseke with Mr Dale Mafunda as the administrator.
IPEC head of prudential services Mr Pupurai Togarepi confirmed in an interview saying the insurance commission was aware of the complications around the issue and was working flat out to unravel the “puzzle”.
“The issue was brought to our attention and as a Commission, we have tasked the Board of Trustees to come up with a way to solve the puzzle,” he said.
He said it will be easy for IPEC to establish the value of prejudice.
Mr Togarepi also pointed out that the investigation into irregularities around the manner in which the AfrAsia pension funds were handled comes after Government appointed a commission to look into the value of pension and insurance lost after the cross over to the multicurrency regime.
“The Minister of Finance came up with a commission of enquiry to investigate the value of pension and insurance assets lost during the change from Zim-dollar to US dollar (era).
“The commission will also assist with information about all pension funds in general,” Mr Togarepi said.
Hundreds of millions of dollars worth of pension funds and insurance investments were lost when Zimbabwe transitioned from its local currency, which had been decimated by hyperinflation to the greenback in 2009.
Efforts to get a comment from AfrAsia Zimbabwe ex-chief executive Mrs Mukunoweshuro were fruitless yesterday as her cell phone was not reachable.
Online Reporter