HomeBusiness DigestKasukuwere part of sinking Genesis ship

Kasukuwere part of sinking Genesis ship

YOUTH Development, Indigenisation and Empowerment minister Saviour Kasukuwere was still a significant shareholder in the ill-fated Genesis Investment Bank shortly before its demise three weeks ago, despite his earlier claims he had exited the bank way before its closure, businessdigest can reveal.
Documents seen by businessdigest show that Kasukuwere owned 13,88% in Genesis through various investment vehicles as recently as May 8, barely three weeks before the bank was forced to surrender its licence after failing to meet the US$10 million minimum capital requirement set for merchant banks by the Reserve Bank.
The documents show that Kasukuwere’s shareholding was spread through various nominee companies, including Tabco Investments (4,25%), Larium Investments (1,8%), Shearox Investments (1,8%), Vilkriss Investments (1,67%), Designated Investments (2,81%), Harnicot Investments (1,55%), Continental Securities (1,55%) Rentus Enterprises (Pokestow) (1,02%) and Vilcerst Investments (0,75%).
The shareholding structure, compiled as at 31 March 2012,  had not changed as at 8 May 2012, documents show. Genesis is the only bank to have failed to raise additional capital, after having tried to court more than 20 potential investment partners. Analysts say Kasukuwere’s presence in the bank may have been a big liability towards trying to lure potential investors. Kasukuwere has been on a rampage, forcing foreign companies, including banks, to surrender 51% of their equity to local investors.
However, when contacted for comment last week, he claimed he no longer had anything to do with the closed bank.
“As a matter of fact, I sold out my shareholding in the bank a long time ago. I am no longer a shareholder and if you check the Genesis board I have no representation,” Kasukuwere said.
However, documents show Kasukuwere was a shareholder just before Genesis, controlled by ZimRe Holdings which had 69,41%, was closed.
His known investment vehicle, Migdale Investments, is listed as beneficial shareholder for the various stakes, amounting to 13,88%.
Kasukuwere, one of President Robert Mugabe’s point men in the heightening threats to seize foreign-owned banks under the pretext of indigenisation, is leading failed bankers who want a chance to revive their fortunes through expropriation.
Kasukuwere’s right hand man David Chapfika, National Indigenisation and Economic Empowerment Board (NIEEB) chair, also presided over the collapse of a bank. Wilson Gwatiringa, NIEEB also has a chequered banking past. He was a top executive at the defunct Universal Merchant Bank where Chapfika was. — Staff Writer.

Recent Posts

Stories you will enjoy

Recommended reading

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

NewsDay Zimbabwe will use the information you provide on this form to be in touch with you and to provide updates and marketing.