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In a statement issued at the weekend, Reserve Bank of Zimbabwe Governor Dr Gideon Gono said after investigations carried out by the central bank and an assessment of efforts to resolve issues surrounding the debt, they were confident that the bank was in a position to conduct business as usual.
“In view of our on-site and off-site evaluations of the bank and concrete corrective measures being taken by the bank, with our approval and given the quality of the major shareholder, AfrAsia Bank Limited, and their commitment to ensure stability of the bank, we are confident that the situation is under control for normal business to continue.
“We emphasise that the stability of any banking institution is a function of the co-operative efforts and goodwill of all stakeholders and to this end, the Reserve Bank wishes to encourage the co-operative spirit among bank customers,” he said.
Dr Gono was responding to a Press report suggesting that Kingdom was on the verge of collapse due to the US$21 million loan that it extended to Spiritage Group.
Dr Gono said that the central bank was aware of the dispute between Kingdom Bank shareholder Mr Nigel Chanakira and Spiritage Group chief executive Zach Wazara and was in the process of mediating with a view to resolving amicably.
“We are aware of the measures which are currently being taken by Kingdom Bank with a view to regularising and addressing the performance aspect of all major facilities including the facility in question, Valley Technologies Ltd.
“We have also undertaken to approve and facilitate all legal and administrative requirements on the part of AfrAsia Limited and any other shareholder, existing or new, should it become necessary that they inject more money and increase their shareholding, which ultimately will see the bank emerging much stronger in terms of capital, corporate governance and any other issues raised during our ongoing supervision of the bank,” he said.
Online Reporter