RBZ official set to lose residence over debt

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RESERVE Bank of Zimbabwe (RBZ) deputy board chairperson Rita Likukuma will lose her upmarket Greystone property after failing to repay a $10 000 loan to Agribank.

BY BUSINESS REPORTER

According to a notice published last week by Choruma Marias Valuation & Estate Executives (Pvt) Ltd, Likukuma’s property, alongside other assets of defaulters, will be auctioned at Raylton Sports Club on November 20.

Likukuma’ property is called Stand 483 Greystone Township 8 of Greystone A measuring 4 047 square metres. Improvements include a brick-under-tile, single storey four-bedroomed house with two lounges, guest wing and staff quarters.

Rita Likukuma

Likukuma, who is also a director of a number of companies, was appointed to the RBZ board in July.

But Likukuma told NewsDay that she was in discussions with the bank over the loan.

“We are talking to the bank. The bank is aware of our commitment. We had already paid something before the advert came out in the newspapers,” she said.

Likukuma said she had borrowed from Agribank and had put the property as collateral.

The development is a blow to Likukuma who was appointed to the RBZ board in July. Her default comes as RBZ and the Ministry of Finance have been urging those who borrow from banks to pay up.

Since the use of the multi-currency regime, banks have resorted to attaching assets as borrowers defaulted due to the harsh economic environment.

The ratio of non-performing loans (NPLs) in the banking sector stood at 14,52% as at June 30 from a high of 20,45% in June last year.

In his mid-term Monetary Policy Statement, RBZ governor John Mangudya said all banking institutions were expected to work towards a target NPL ratio of less than 10% by June 30, 2016 and 5% by December 31, 2016.

Mangudya said the initiatives to enhance overall credit quality in the banking sector and clear the NPLs had progressed smoothly. He said the Zimbabwe Asset Management Company (Zamco) had started the process of cleansing the toxic assets from the banks’ balance sheets while the full operationalisation of the credit reference system by the end of the year was expected to address information asymmetry challenges. Zamco is a special purpose vehicle created to buy secured bad loans.

“These measures will clear the banking sector of serial defaulters while concomitantly fostering a sound credit culture,” Mangudya said.

5 COMMENTS

  1. Case of do as I say not as I do? Director of “several companies” is not really uplifting when they start to sink one by one. On what merit did she get appointed to the RBZ board and how many members in that board have similar predicaments? Is this perhaps why Kasuks and the AAG whiners were shouting about “defaulters not being made homeless” recently? If as an MD you put up your house as collateral, what does the small print say? Apparently, it doesn’t take much to be a director nowadays.

  2. Deputy Board Chairperson of the Apex Bank failing to service a Loan – a mere $10,000? What a disaster! What is her a worth if she fails to service a $10,000 loan? Who will now supervise the bankers? It is like finding a policeman stealing!

    She must resign now!

  3. Now I understand why PG continue retaining the same top executives like Hilary munyaradzi munyati regardless of perennial losses branch closures ,property sales and ballooning debt. Likukuma is one of the PG industries director. Who ever dreamt that pg industries could ever be reduced to what it is now. No effective board

  4. RBZ these banks are charging interest on interest. Is that legal. Too much profiteering no wonder people are doing marounds instead of banking and saving nemabanks edu.

  5. The issue of integrity in not negotiable in the banking sector. Corporate governance issues are important for the running of national institutions in general and business in particular. What will be the moral standing of RBZ if one of its board members is behaving in this way?This is like an illegal drug dealer demonstrating in the street against drug abuse.Would people take him seriously? Without a complete change of attitude in Zimbabwe in terms of governance, we should forget about seeing dawn in the near future.. This is a bank which laid off its employees without compensation some years back.A central bank which should be a becon of corporate governance yet absconding from the tenets of best practices. A board member who borrows to the extend that she fails to pay back?Cry my beloved country, Cry.

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