Treasury to recover 11% of Interfin Bank debt

TREASURY is expecting to get close to $2 million from the $18 million it lost in Interfin Bank when it was placed under curatorship.



Speaking before the Parliamentary Portfolio Committee on Budget and Finance, accountant general in Finance ministry Daniel Muchemwa said the government has been attending all creditors meetings including the one on June 2, 2015.

“There is an anticipation that we will receive plus or minus $2 million of the $18 million. The liquidator is finalising assets and liabilities,” he said.

Interfin was closed in 2012 after the central bank established that it was not in a safe and sound position and was weighed down by non-performing insider loans.

Muchemwa said Treasury would not have deposited money into Interfin had it known that the bank was in dire straits.

He, however, said he did not know if the directors of the bank were going to be prosecuted over funds that went missing from the bank.

Amendments to banking laws have provisions for prosecution of directors and managers who act negligently or recklessly. The Bill that passed through the National Assembly, requires approval from the Senate and President Robert Mugabe’s signature for it to become law.

Muchemwa said the Infrastructure Development Bank of Zimbabwe (IDBZ) has given $70 million to State enterprises and few of the beneficiaries have paid up so far.

The Public Sector Investment Projects director Fidelis Ngorora, said $70,5 million from Special Drawing Rights resources have been availed to Zimbabwe Power Company, National Railway of Zimbabwe, Civil Aviation Authority of Zimbabwe, Zimbabwe National Road administration, Transmedia, TelOne, Marondera and Bulawayo water and sewer as well as Mutoko. He said the $70,5 million was the first amount of money availed to state enterprises in 2010.

“First the idea of going through IDBZ is to ensure that you get direct and unquestionable flow between the bank and the customers,” he said.

Mabvuku-Tafara MP James Maridadi asked why Treasury would lend $5 million to National Railways of Zimbabwe which was in the red with $150 million.

One Response to Treasury to recover 11% of Interfin Bank debt

  1. sibbs March 15, 2016 at 9:33 am #

    what about us the depositors whose our cash is still trapped there? when are we going to get it back? who actually own this bank because the time taken to settle the problems is too much there must be political hands there

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