Financially-beleaguered ReNaissance Merchant Bank (RMB) former chief executive officer Patterson Timba’s father, Paul James Timba, reportedly owes the cash-strapped bank $50 000.
This was revealed in High Court papers in which Patterson is seeking relief to bar the Reserve Bank of Zimbabwe (RBZ) from using RMB coffers to pay for the curator Reggie Saruchera’s services.
Timba’s father, a farmer, was allegedly granted a working capital facility of $50 000 in November 2009. Agreed terms were Timba would repay the loan from crop proceeds estimated at $100 750.
But according to court papers, the debt has since been classified as a loss, which means Timba’s father has allegedly failed to settle the debt.
Part of the annexure, titled Summary of Adversely Classified Loans, reads: “After failure by the obligator to service the debt due to poor harvest, the facility was extended to December 31 2010 from the original date of September 30 2010.
The limit has since expired.
“There is no evidence of further follow-ups since September 2010. The group CEO Timba pledged verbally to repay the facility on behalf of Paul James Timba. However, no payments have been received to date.”
RMB was put under curatorship by the RBZ in June after its management was accused of practicing bad corporate governance.
The central bank established there was systematic abuse of depositors’ funds that included a $9,8 million loan to Timba and gross violations of banking laws and regulations.
Information about Timba’s father’s debt is contained in an annexure which forms part of the RBZ’s response to Timba’s suit filed two weeks ago.