HomeBusiness DigestTime shareholders shelve plans to pay out creditors

Time shareholders shelve plans to pay out creditors

Shakeman Mugari

TIME Bank shareholders have abandoned plans to pay out creditors after the bank’s fomer curator failed to release audited financial accounts.

The bank had scheduled to pay out creditors and depositors on July 28, but sources said they had resolved to defer the payments last night after failing to secure audited statements on the bank’s assets.

The shareholders had planned to pay the creditors and depositors next week, July 28.

Businessdigest reported last week that Time Bank shareholders had spurned a “symbolic” handover of the bank by the Reserve Bank of Zimbabwe (RBZ) following the expiry of its curatorship.

The RBZ wanted to hand over Time Bank to the shareholders despite withdrawing the bank’s licence over a month ago.

Time Bank shareholders have since contested the withdrawal of the licence.

Businessdigest reported three weeks ago the RBZ’s offer to Time proprietors, who were prepared to pay off all depositors once the bank was handed back to them.

Norman Mataruka, head of Bank Licensing, Supervision and Surveillance at the central bank, had proposed to hand over the bank to Time directors at a meeting on July 3.

“You will appreciate the urgency of this matter and the need to conclude all outstanding issues pertaining to Time
Bank,” Mataruka said in a letter dated June 30.

The handover failed to take place after the directors rejected the proposal, insisting that they would only accept the bank back on production of audited accounts by curator Tinashe Rwodzi of PricewaterhouseCoopers.

Rwodzi was in charge of the bank’s affairs for two years.

The directors said the handover should be subject to audited financial statements being submitted and a physical verification of assets and liabilities of the bank — including bank accounts — being produced.

Time Bank shareholders gave Rwodzi up to last week to produce audited financial statements of the institution prepared during the period of his curatorship.

The letter to Rwodzi, dated July 3, said the shareholders wanted the audited financial statements for the period or financial years ending December 31 2004, December 31 2005 and June 30 2006 to enable them to repay creditors.

The shareholders wanted the curator’s verification of assets and liabilities of the bank before accepting the bank back.

Time Bank shareholders said they required the audited accounts to enable them to verify the bank’s assets and liabilities before they could make initial payouts to creditors and depositors.

A schedule seen by this newspaper indicated that creditors and depositors based in Harare, Bulawayo and Mutare were to receive up to $10 million payments on July 28.

It said the balances left from the initial payment would be disbursed after the release of audited accounts by the curator.

The shareholders have since resolved to make the payouts late next month but that depends on the release of the audited accounts by the curator.

Recent Posts

Stories you will enjoy

Recommended reading