Mpofu’s bank sends 92pc of staff home

via Mpofu’s bank sends 92pc of staff home – New Zimbabwe 25 June 2014 by Staff Reporter

A STRUGGLING commercial bank owned by transport minister Obert Mpofu has put most of its staff on unpaid leave as it teeters on the brink of collapse, risking sector wide malaise.

According to Reuters news agency the undercapitalised bank has sent 92 percent of its workers home without pay until September in a bid to cut costs.

The bank, formerly ZABG, is struggling to raise new capital at a time non-performing loans now stand at 69 percent.

A bank spokesperson told Reuters: “The fundamental challenge for Allied Bank since inception has been the issue of inadequate capitalisation.

“The bank is implementing this voluntary unpaid leave scheme in an effort to contain operational costs, staff costs included.”

Mpofu, widely believed to be one of the country’s richest ministers, said he was not involved in running the bank.

He was handed the financial institution by former Reserve Bank of Zimbabwe governor Gideon Gono in 2012 after reportedly injecting about $23 million in new capital.

Confirming the deal at the time, Gono said Mpofu effectively rescued the bank from possible collapse after it had struggled to meet new minimum capital requirements.

“Dr Obert Mpofu … came forward with his money and sought permission to take over ZABG bank which was ailing,” RBZ chief Gideon Gono said in March last year.

“We gave him two years within which to regularise the ownership structure of that bank … which he committed to do but for the time being he has put in money and is a 99,9 per cent shareholder.”

However, the minister has not invested more money to support the bank and it has since been revealed that he did not acquire the institution for cash.

A confidential RBZ report leaked last year stated that: “properties contributed as capital by the major shareholder are yet to be transferred into the bank’s name, notwithstanding the waiver granted by Zimra (Zimbabwe Revenue Authority) on the payment of capital gains tax.”

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13 comments on “Mpofu’s bank sends 92pc of staff home
  1. zanupf fear me says:

    Its the old criminal zanupf hobby tactic. Takeover something for free or with NASA can. Asset strip it. Salt the stolen proceeds in swiss Dubai equatorial guinea Angola china Singapore Malaysia mafia banks. We will recover the loot. I’d hate to be a zanoid with what’s awaiting them.

  2. zanupf fear me says:

    Or the ? Zanupf wealthy fun. Take your pick of no me Laure. Whatever its the zanpid retirement in far east fund.

  3. Mscynic says:

    On what ground is ZIMRA waiving cap gains tax? The law must be applied equally to all citizens?

  4. Petal says:

    Mpofu owns so much besides the shopping complex and yet so many have just so little

  5. Petal says:

    zimra seem to be favouring the bigwigs when it comes to tax

  6. LUCY says:

    Easy come ,easy go.

    Track the history of major corporate business and you normally find the person who started it worked their socks off and sometimes made difficult decisions and sacrifices to grow that business to the stage it is now. Such people tend to value hard work. They are not afraid to sweat a little. Their first car was far from a mercedes benz curtesy of the reserve bank.They did not wake up one morning and raid some Government coffer to get rich.

    They have leart the ropes of business the hard and determined way.

    These opportunistic businessmen who rise by night like dew and diasaapear in the morning soon as the sun comes have no roots, no foundation,no business ethics nothing. Just a get rich quick-buy a mansion and marry a young wife show off mentality.
    You will nevr be Bill Gates or Steve Jobs with such a mentality.

    dust to dust!!!

  7. LUCY says:

    “However, the minister has not invested more money to support the bank and it has since been revealed that he did not acquire the institution for cash.”

    So in other words all he did was empty the existing tills??? Given two years to completely ensure the bank was dry.

    Now there is nothing and the workers lose.

  8. Justice says:

    And what’s the bet he retains his properties and walks away after plundering this institution.

  9. macemike says:

    Metbank is next!!!

  10. munzwa says:

    I believe more and more of these zanu big wigs are struggling for cash, if they not paying taxes, local and govt then why should we????

  11. mandy says:

    We are told that Mpofu will revive the NRZ in six months! Why not revive your own bank first Mr Mpofu. After all you sunk $23 million of your hard earned money into the project.

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