ReNaissance Merchant Bank (RMB), which has been under curatorship since June last year, is back in business after the National Social Security Authority (NSSA) successfully recapitalised it.
NSSA recently acquired an 84% stake in the merchant bank.
In emailed responses to NewsDay yesterday, former RMB curator Reggie Saruchera said: “The Curatorship ended on the 3rd of March 2012. The RMB curatorship assignment has been completed and the hand-over take-over process to NSSA is underway.”
Saruchera said NSSA had since taken over the management of the bank.
“NSSA has taken over the management of RMB and the interests of depositors and creditors are secure and the bank is back in operation,” said Saruchera.
He, however, could not shed light on further appointments to the board referring all questions to NSSA general manager James Matiza. Matiza could not be reached for comment.
A fortnight ago, NSSA appointed a four-member team led by Joseph Kanyekanye to work with Saruchera, as it moved to resuscitate the bank. In his update on the state of the baking sector on Friday last week, Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono said RMB was now compliant with the minimum capital requirements, with capital of $24 million.
The NSSA deal involved a cash injection of $9,83 million, conversion of a deposit of $8,5 million with RMB into equity and assumption of a debt of $5,7 million owed to Econet Wireless by RMB and Renaissance Financial Holdings Limited by NSSA.
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The bank was placed under curatorship last year after an investigation by the RBZ unearthed serious governance deficit and the spiriting away of depositors’ funds.
After the investigation, the bank was found to be technically insolvent with negative capital of $16 million leading to the axing of founders Patterson Timba, Dunmore Kundishora and some board members from holding any position in the banking sector for five years.
