Obert Mpofu Escapes With $3mln Council, Govt Cash
14 July 2015
Spread the love

Transport Minister Obert Mpofu’s business is escaping with around $3million of government and council cash as a result of the collapse of his Allied Bank.


Zimbabwe’s cash-strapped government is set to lose nearly $600,000 which is locked up in Allied Bank — majority owned by transport minister Obert Mpofu — while municipals and other state departments are owed over $2,5 million following its collapse early this year, with chances of recovering all the money slim, The Source has established.
The Reserve Bank of Zimbabwe in January cancelled the bank’s operating licence as it was no longer in a safe a sound condition.
According to the bank liquidator’s interim report, the financial institution collapsed due to, among other factors, negative core capital, illiquid toxic assets, management shortcomings, gross undercapitalisation, persistent losses, abuse of depositors’ funds, high volume of non-performing loans and bad corporate governance.

Gone for good...Mpofu's bank
Gone for good…Mpofu’s bank

Claims presented during a meeting at the High Court recently, show that government ministries, parastatals and municipalities are among creditors owed by the bank.
The indigenisation ministry is owed $333,491 while the education ministry is owed $228,760. Government parastatals and municipalities whose funds are also locked in the bank include Bulawayo City Council which is owed $495,000; City of Gweru $5,000; NRZ Pension Fund $25,000; TelOne $2,000; National Social Security Authority; $807,000 and the Zimbabwe Revenue Authority $1,2 million.
The bank, which emerged from the ashes of the Zimbabwe Amalgamated Banking Group – was created by the central bank in 2004 to warehouse the assets of three troubled banks.
When the High Court approved the bank’s liquidation in February, its assets were recorded at $25, 8 million while liabilities stood at $34,4 million.
However, according to the law, statutory bodies and secured creditors are paid in full once assets of a company being liquidated are sold while the rest are paid on a pro-rata basis.
“…liquidation costs are paid first, and then the residue is distributed in order of the following preferences – secured creditors, preferent creditors and the balance is lastly paid to the concurrent creditors (unsecured),” read a report to creditors by the liquidator’s agent, Cecil Madondo.
The report however, did not list the government ministries as secured creditors, making it highly possible that they will lose some of the money depending on the amount realized from the sale of the bank’s assets.-Source

One Reply to “Obert Mpofu Escapes With $3mln Council, Govt Cash”

  1. I’m very curious…why is it only that Shona black owned banks that ALL go broke with senior management often absconding to foreign lands with the depositors funds? Why??? So why don’t the white owned banks like Barclays and Standard behave in the same manner ? Why did the Shona blacks destroy our health system and our edipucation system and our judiciary and our railways and our agricultural industry and our Iron and Steel Zisco plant and our Hwange Colliery and our power system and our National Parks and our road infrastructure and our CSC and our Air Zimbabwe Why why why? What is it about you Shona people that what ever you lay your hands on you destroy it ? There must be a reason for you behaving in this manner, because normal people advance by going forward yet you lot have gone back 150 years!!!!Oh right, I forgot, you blame it all on the white man sabotaging the economy or on targeted sanctions. Sanctions? What sanctions? You can import anything you want and you can export anything you want, so there is obviously no sanctions??? Oh, I see, you want access to the white mans hard earned cash via the IMF and World Bank so that you can continue stealing!!! Well, listen here you thieving comrades, there will be no more cash coming your way for a very long time so get used to living on berries and wearing skins and going to school under the trees and walking everywhere instead of riding or driving…because it is all catching up with you, you despicable lot of thieving fools!!!

Comments are closed.