Bulawayo South Member of Parliament Eddie Cross has queried why the directors of Interfin Bank, which was liquidated nearly two years ago, are still walking scotfree when they squandered $100 million of depositors’ money, $23 million of which was government or taxpayers’ money.
He also queried why the government invested such a huge amount in the bank only three months before it went into liquidation.
Interfin Bank, which was started in 1999 as Interfin Merchant Bank, was put under curatorship in 2012 before being liquidated in December 2014.
The liquidator, Ngoni Kudenga, said some of the debtors had taken advantage of the two-tear curatorship period to hide their assets.
“We have an institution which was owned 60 percent by three players, Mr Farai Rwodzi, Mr Jerry Tsodzai and Mr Tim Chiganze. The bank was put under curatorship in 2012 and then liquidation in December 2014 and this provided an opportunity for some debtors to hide assets,” he told The Herald in October last year.
“During the period of curatorship, Mr Kudenga said the curator made initiatives to raise capital for the bank and two recapitalisation plans were proposed but failed to materialise. The bank’s related parties owe about $90 million constituting 52 percent of the total debt.
“That is where we have a major problem because some related parties took advantage of the curatorship period and they got time to place their companies or assets under either judicial management or liquidation.
“Once you put a company under liquidation or judicial management it means any legal action against that person will not be effective,” Kudenga said.
Cross said the directors of Interfin had not been held accountable though they had siphoned $100 million in depositors’ funds. This was appalling because if someone stole a cow the person would be jailed for a mandatory nine years.
“There has not been any prosecution, and there is absolutely no follow up whatsoever, except a liquidator who has attempted to recover the funds from the assets of the company,” he told Parliament.
“The directors have not been brought to account and I just ask, how much longer are we going to tolerate this kind of thing?
“If I was to steal a cow from a farmer in the rural areas, I would go to jail for 9 years. Here we have got board of directors who have stolen a $100 million of public funds and they have not been brought to account this is just impossible. “
Stories about Interfin leading to its closure
High Court grants order to attach Chiyangwa’s property over unpaid Interfin debt
Chiyangwa ordered to pay back $4 million Interfin loan
Interfin liquidator expects to recover only $17million as debtors hide assets
Interfin Bank creditors vote to prosecute directors
High Court okays Interfin liquidation
Interfin Bank to be liquidated
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