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Barbican cars repossessed

Ngoni Chanakira

BARBICAN Asset Management (BAM) vehicles will soon be auctioned to raise more than $45 billion owed to thousands of creditors.

sans-serif”>BAM, under liquidation, is a subsidiary of Barbican Holdings Ltd founded by prominent banker Mthuli Ncube.

While not revealing details of the intended offloading of the vehicles, KPMG Chartered Accountants (Zim) Ltd partner Peter Bailey said however so far no Barbican Asset Management vehicles had been sold.

“Most of them have been removed from those using them and taken into safekeeping,” he said yesterday. “Some of the users were in senior management.”

He however confirmed that three vehicles owned by Scotfin but used by Barbican Asset Management staff were auctioned last Saturday. Scotfin is a division of the Zimbabwe Financial Holdings Ltd.

“Three vehicles owned by Scotfin but used by BAM staff were auctioned last Saturday, but only one was sold,” he said. “The auction was handled by Auction City.”

It is reliably understood the vehicles on offer included Peugeot 306s and a Mercedes Benz.

Barbican’s troubles began on March 15 when it was put under curatorship by the Reserve Bank of Zimbabwe (RBZ) for a period of six months. The directive was served in accordance with the provisions of the Banking Act, (Chapter 24:20). At the same time the RBZ appointed Tererai Matavire of KPMG Chartered Accountants (Zimbabwe) as the curator.

When it shut down Barbican Bank the RBZ said it had taken the action upon discovering that the institution was not in a sound financial condition.

On April 6 the High Court granted a provisional order for liquidation and appointed a liquidator for Barbican Asset Management, which was also closed.

The RBZ had petitioned the court to grant it a provisional order, saying investments recorded showed that Barbican Bank was technically insolvent with total assets of $42,66 billion against liabilities of $44,77 billion.

The central bank said Barbican Asset Management Zimbabwe was funding Barbican Asset Management South Africa, Barbican Holdings Botswana and Barbican Capital Partners. These subsidiary companies had posted losses since inception and were technically insolvent to the tune of $3,4 billion in local currency.

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