ZIMBABWE Amalgamated Housing Association (ZAHA) chairperson Killer Zivhu has threatened to sue the Reserve Bank of Zimbabwe (RBZ) and Transport minister Obert Mpofu in a bid to recover more than $1,5 million locked up in the minister’s collapsed Allied Bank.
BY RICHARD CHIDZA
In 2012, Mpofu reportedly splashed $23 million to buy Allied Bank and promised to recapitalise the financial institution but failed to do so until it was forced to surrender its banking licence early this year.
Addressing ZAHA members in Norton on Saturday, Zivhu said the association would pursue legal channels to recover the money.
“We have decided that we will sue the Reserve Bank of Zimbabwe, Obert Mpofu and his company Trebor Khays for $1,5 million that we lost when Allied Bank closed,” Zivhu said.
“We have been advised the liquidator has written to Mpofu demanding that he hands over the assets in the form of buildings he promised when he bought into the bank.
“Mpofu was aware that the bank was not on sound footing but for two years continued to risk people’s funds. This has to be challenged.”
Mpofu, the self-confessed richest Cabinet minister was not available for comment as his mobile went unanswered.
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“As for the Reserve Bank of Zimbabwe, we will sue them as well because they declared that Allied Bank had been capitalised and was open for business,” he said.
“On that score we decided we could bank with them only for the financial institution to shut its doors after a few years.
“We deposited our money on the understanding that the country’s financial regulator had given the public confidence.”
He said he was confident though the association will be able to complete the project comprising of almost 3 000 stands measuring an average of 2 000 square metres despite the set-back.
“We are now almost complete with the project which as we speak is at 90%,” Zivhu said.
“The civil works including water and roads – most of these things are almost done.
“We called a meeting to notify members that they can now move in and begin building their houses. We have the title deeds to this land.”
Thousands of depositors were left stranded in January when Allied Bank collapsed.
The Deposit Protection Corporation later intervened and paid out $500 to each of the bank’s institutional depositors.
“We have not even bothered to follow up on the money. It does not make sense,” Zivhu said.
