THE Deposit Protection Corporation (DPC) is winding down compensation for depositors of Genesis Investment Bank Limited, saying it will terminate pay outs to former clients at the end of next month.
BY TATIRA ZWINOIRA
Genesis surrendered its banking licence in June 2012 and was placed in final liquidation the same year.
In a statement yesterday, DPC said if depositors did not make a claim within the prescribed period, the unclaimed protected deposit shall be forfeited in terms of section 38(6) of the DPC Act (Chapter 24:29) and the rights revert to the Corporation.
“Notice is hereby given concerning the impending termination of compensation from the Deposit Protection Fund to depositors of Genesis Investment Bank Limited (in liquidation) by June 30 2017,” DPC said.
DPC chief executive officer John Chikura did not respond to repeated calls from NewsDay for further clarifications.
According to DPC, payments on the liquidation front will remain in force in accordance with the framework and parameters as provided in the Companies Act as read together with the Insolvency Act.
Under the DPC framework, a depositor has up to 90 days to launch a claim from the date the corporation issues a written notice to the depositor of the appointment of the DPC as the liquidator.
DPC issues payments in two ways, namely, through Deposit Protection Fund of up to a specified cover level and the liquidation dividends on a pro-rata basis, subject to debt recoveries and asset realisation.
In June 2016, the deposit protection cover limit was increased to a maximum of $1 000 per depositor per member bank from $500.
In its 2015 annual report, DPC said at the end of December 2015, the corporation had declared two dividends to Genesis Bank creditors.
A first interim dividend of $90 909,10 was awarded to preferred creditors in May 2013 and in June 2014, a second dividend of $71 546,76 was paid to preferred creditors, whilst concurrent creditors got $150 000, or $0,06 per dollar.