Govt forcing NSSA to rescue failed bank

via Govt forcing NSSA to rescue failed bank 25/02/2014 by The Source

AN unnamed Reserve Bank of Zimbabwe (RBZ) board member recently wrote to finance minister Patrick Chinamasa suggesting that the National Social Security Authority (NSSA) inject more funds to resuscitate the failing Capital Bank.

Subsequently, the finance ministry wrote to the Ministry of Public Service, Labour and Social Welfare requesting that it persuades NSSA to invest $40 million to save the bank.

This was revealed by NSSA general manager James Matiza during a hearing before legislators in Harare on Monday.

NSSA also invested some $24 million, rising to $39 million into the bank following a directive by former finance minister Tendai Biti, with the State-run pension scheme admitting that investment was lost.

“We want to get out of this bank, as to what will happen to the $39 million, we many not recover some of it,” said Matiza.

“I don’t think it’s a wise idea to put more money. We may be compelled but our brief to the minister (of finance) is to let liquidation take place.”

Capital Bank was part of Patterson Timba’s business empire which collapsed in 2011 in a cloud of poor corporate governance allegations. Timba is the brother of top MDC-T official Jameson Timba.

Matiza said he received another letter dated February 21, 2014 from the Reserve Bank of Zimbabwe saying it was not happy to cancel the bank’s licence.

Member of Parliament (MP) for Hurungwe North, Rueben Marumahoko questioned why the initial directive by the finance ministry was issued to NSSA and not to the parent ministry.

“What would he (Matiza) do as a small man but to accept the directive? I sympathise with him,” he said.

MP for Lobengula, Sipepa Nkomo concurred saying that Matiza should have sought clearance from his ministry before investing into Capital Bank.

“The dollar you are entrusted with belongs to the worker and it’s not the minister’s money.

“You failed to protect our money and continue to put more money in a bad investment. You should resign,” Sipepa Nkomo said.

“Let’s liquidate the damn bank and get on,” said Bulawayo South legislator, Eddie Cross.

Matiza maintained that that he had advised the ministry not to invest.

Timba, Matiza said was opposed to the liquidation of the bank and wanted it back on grounds that it was undervalued at takeover.

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8 comments on “Govt forcing NSSA to rescue failed bank
  1. John Thomas says:

    There is a misunderstanding here. Anybody who thinks that NSSA about looking after pensioners is wrong. NSSA is about giving money to the likes of ZANU Capital bank. This money will be lost for ever. The thieves who run this bank have exhausted all other victims they can find and have spent everything with nothing to show. Now they want more. In fact they feel entitled to more. Who are we to say that NSSA money is our money and we don’t want it stolen!

  2. gorongoza says:

    Whose bank is it anyway? Why so mush interest from Biti, Reserve Bank and Chinamasa to keep this particular bank afloat when the others are folding? Personal gain?

  3. Chokwadi says:

    Why are the interest rates for loans from Standard Chartered higher by far compared to those for other locally owned banks like CBZ, considering that interest rates in USA where standard get’s it capital are so low….help us Finance Minister and RBZ

    • Jenandebvu says:

      Becoz the risk perception by Std bank to the local borrowers is high. They charge high interest in recognition of high default risk and related administration. Why are you dump. Standard bank uses expect skilled manpower and models to grant a Loan to a worthy client and track performance vigorously, taking more money to administer while CBZ check a register of what party you belong to and what colour is your skin, which takes no much resources to manage. Remember who bails out CBZ in case of liquidity crunch, NASSA. The process is just a letter or a phone call. Conversely, barclays and stanchart is quizzed for improper lending. Remember Stanchart need no RBZ for good banking principals, instead, RBZ need stanchart manuals to develop “best practices”. Just go nad take you loan from Cbz where it is cheap, and leave Std bank to collapse for lack of borrowers

  4. gizara says:

    In that case let nssa also rescue metropolitan bank in return for 100% equity.

  5. Zindoga says:

    Money that NSSA has is public funds nt Government.the government must not treat that Money as Tax.NSSA should invest on its own and pay Good Pension.what can u buy wth $20 dollars?? But they can afford to lose $39mln.these people are they serious???? This is what started unrests in other countries.Why dont our leaders learn?

  6. PMK says:

    That is zimbabwe for you.ZANO PEE EFF yauraya nyika toita seiko nevanhu ava.Everything they touch dies.Why why and for how long should this continue.

  7. Jenandebvu says:

    NSSA management is a wing of the sitting government. They dance to the tune. The government want everyone dead, poor so as to remain loyal. Hence a NSAA board that is not loyal to ZPF is fired the next day

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