Mpofu’s struggling bank on the brink - Zimbabwe Situation

Mpofu’s struggling bank on the brink

via Mpofu’s struggling bank on the brink 16/02/2014 by Staff Reporter NewZimbabwe

ALLIED Bank, which is owned by Transport Minister Obert Mpofu, is planning to approach investors for fresh capital as it teeters on the brink of collapse.

According to the Herald newspaper: “The bank will flight a public notice inviting investors willing to inject fresh capital into the bank for some shares and this should be done in the next few weeks.

“If that fails to bear positive results, the bank will downgrade its banking license to deposit taking micro finance.”

Allied bank was handed to Mpofu in 2012 by former central bank governor Gideon Gono after the Zanu PF official, said to be one of the country’s richest ministers, reportedly injected about $23 million to help re-capitalise the institution.

Gono confirmed the transaction saying Mpofu effectively rescued the bank from possible collapse after it had struggled to meet new minimum capital requirements.

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

“We gave him two years within which to regularise the ownership structure of that bank to a maximum of 25 per cent for any single shareholder which he committed to do but for the time being he has put in money and is a 99,9 per cent shareholder.”

However, Mpofu has failed to inject more money into the bank which was one of the institutions worst affected by cash shortages in December leading to clashes with depositors at its branches around the country.

According to the Bulawayo-based Southern Eye newspaper, Mpofu’s rescue deal of 2012 was not based on cash.

The minister was said to have contributed buildings which have, however not been transferred to the bank.

A confidential report by the Reserve Bank of Zimbabwe seen by the newspaper read: “The bank’s reported core capital declined from $12,59 million as at August 2013 to $11,18 million as at September 2013 due to persistent losses that the institution continues to incur.

“The 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.

“There has been no progress made in the bank’s recapitalisation initiatives.”

 

COMMENTS

WORDPRESS: 11
  • comment-avatar
    roving ambassador. 4 years

    This is a clear case of an individual using his privileged position in government to amass wealth . You can see Gono and Zmra attesting to it. Its in black and white. Where is this Charamba Girl. SEE ,SEE,SEE, CORRUPTION.

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    Thembani 4 years

    Obert invade foreign owned banks , sercure capital and inject that to your bank. That is called indeginisation simple solution.

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    John Thomas 4 years

    He cannot run a business yet he is a cabinet minister! Where did this sloppy fellow get his money? He is too much of a loafer to do it the hard way so I can only conclude he stole it all. At the Transport Ministry things are not as rich as at Mining so already he is having cash flow problems. Anybody who invests in his bank deserves what will happen to them. Namely that all their money will be lost.

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    libona ababeki imali zabo eAllied yet bayayazi ukhuthi umnikazi nguobert bayahlanya.

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    NBS 4 years

    That’s what you get when you add house to house and try and build an empire on ill gotten gains. My advice to Mpofu is that he go before the Lord and repent and cry out for forgiveness and then also ask Zimbabwe for forgiveness. In one of Paul’s letters he says a thief must stop stealing and earn money honestly and give to the poor. A good lesson for all Zimbabweans. Theft of any sort brings a curse upon the thief’s house! Let him who has ears hear!

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    Reverend 4 years

    Hey owebert have your wekkas been in the till? You have been caught at your own game Mpofu…hehe!

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    Kanti abantu bamnikezelani u Obert imali,hehehe bazokhäla sivaliwe

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    He most probably banks with Barclays. I don’t see him banking in his own bank. He is used of misusing other peoples money.

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    Mlimo 4 years

    How does Gono get this far in business when he was a tea boy before? This tea boy must have licked a few behinds to get to be the reserve bank – note my sarcasm . Zanupf pays big dividends for corruption. This comes from the top Mugabe through the few via the politico shamwaris and boot lickers. The attitude comes from a nation that has been taught it was all the colonials fault or the Rhodies or the whites. Stealing has become a way of life. If you wanted a farm just take it from a white, if you wanted a business just take it from an overseas investor, if you want more money just vote yourself a big salary, if you want lots of cash take it from a foreign donor or bank. If you want diamond just steal them from the nation. If you want a car steal it and so it goes on. There is a point which Zimbabwe is fast approaching where there is little more to steal. The banks have no money, the companies have closed their doors, the investors have fled, the sane people have left , the mines have closed or shut up shop, the farmers who produce the food have been removed, the industries have gone to other countries or shut down, the manufacturers have closed shop. The banks are running out of money, the cold storage needs refinancing but there are no beasts to slaughter, zesa is owed $800 million but there is no cash in the banks to pay the bills even if one wanted to, Mugabe has run to Britain for money for education because there is no money. Oh my the list goes on. There is not enough to pay the police so they rob the tourists, the army gets paid now and then but if they want anything they just rob the banks or shops but these are closing. And so on. Has Mugabe failed? I would say so its just a matter of time.

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    Arufandika 4 years

    Its because of the sanctions imposed on us by britain and friends