HomeBusiness DigestMagwada quits, Tagarira takes over

Magwada quits, Tagarira takes over

Godfrey Marawanyika

EMMANUEL Tagarira is tipped to take over the hot seat at the Zimbabwe Allied Banking Group (ZABG) as the group’s managing director following the departure of Dominic Magwada.

Magwada resigned from the group on medical grounds.

Tagarira is currently ZABG’s managing director for wholesale banking and had a stint with Stanbic Bank prior to assuming the position of executive director in the bank’s wholesale banking division.

“It’s true that he did resign but this was on medical grounds,” the spokesperson said.

“He has had two surgeries before and because of health problems, he has decided to leave.”

Magwada could not be reached for comment this week as he was said to be attending meetings whilst his mobile phone was not reachable.

Before joining ZABG, Magwada worked for Barclays Bank of Zimbabwe and was in 1995 seconded to Barclays South Africa as deputy managing director.

Upon leaving Barclays, he was appointed executive director for Opportunity International, Africa and Intermarket Banking Corporation.

ZABG was put in place by the central bank as part of its stabilisation plan in the banking sector which resulted in seven institutions being placed under the management of curators.

The institutions that were placed under the compulsory six-month curatorships were mostly found to have engaged in malpractices and accused of poor corporate governance.

This was largely caused by the fact that most directors were the major shareholders in the institutions.

The arrangement resulted in the siphoning and diversion of funds from the banks to related parties and companies, which were found to be largely non-performing.

Investigations also revealed that the bulk of the funds became irrecoverable since the accumulated interest far exceeded the original amount.

Despite last year’s financial tremors, a number of bankers said that the worst was now over but noted that confidence within the sector was still low.

Last year, a number of bankers were arrested and others hauled before the courts for flouting exchange control regulations and defrauding investors.

Others fled the country.

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