Renaissance journey to curatorship

10 May 2011 – The Group CEO Mr Patterson Timba meets the Minister of Finance.

11 May 2011 – The Governor, BLSS (the investigation team), Mr Timba and other senior officials of Renaissance met the minister at the ministry’s premises, followed by a public statement by the minister on the affairs and condition of RMB

12 May 2011 – The boards of directors of the holding company, Renaissance Holdings Ltd and Renaissance Merchant Bank were called to the Reserve Bank and met the Governor who was in the company of the 3 deputy Governors, the advisor to the Governor, and senior Reserve Bank staff.

12 May 2011 – Dr Gono presented the Investigation Report to the chairmen of RFHL and RMB, for them to go through the Investigation Report and provide responses.

18 May – The boards of RHFL and RMB provided their respective responses. The response generally conveyed the “we didn’t know what was happening at the institution” defence.

19 May 2011 – The RBZ Banking Sector Surveillance and Loans Committee had a meeting and BLSS presented a report on the investigation findings.

19 May 2011 – The committee resolved that concrete and holistic interventions should be taken on RMB and BLSS was tasked to prepare three letters to the Minister of Finance with respect to:

– Letter requesting the minister to urgently provide holistic solutions to RMB. The letter should highlight to the minister the consequences of the proposed bail out of RMB by NSSA and the precedent set by such a bail out.
– Report on the status of the banking sector, and
– Letter advising the minister on appropriate measures to be taken to resolve troubled banks, including formal and informal actions to be taken by the Reserve Bank.
Upon receipt of the above correspondence, the minister called for a meeting with the Governor.

30 May 2011 – The Reserve Bank Banking Sector Surveillance and Loans Committee met and resolved, subject to endorsement by the full board, to:

a) Issue a Corrective Order directing changes in bank’s corporate governance arrangements and risk management systems as well as dismissal of culprits who were conducting acts of misdemeanor at the institution;
b) Place the bank under the management of a curator; and
c) Issue a public statement on the status of affairs at RMB.

31 May 2011 — the board of the Reserve Bank sat and resolved to put RMB under the management of a curator for a period of six months.

1 June 2011 – The Governor, members of RBZ Banking Sector Surveillance and Loans Committee, and BLSS officials met the Minister of Finance and the minister endorsed the board’s resolution to place RMB under curatorship.