HomeBusiness DigestKanyekanye under probe over US$400 000

Kanyekanye under probe over US$400 000

The Capital Bank board has instituted investigations into allegations its chairman Joseph Kanyekanye could have abused his position to access a US$400 000 loan from the bank, among other allegations.

Report by Chris Muronzi

Capital Bank, which is owned by the National Social Security Authority (Nssa), is also looking into allegations Kanyekanye and his spouse benefitted from a tender to supply the bank with corporate wear, among other charges.

Kanyekanye also sits on the board of directors of Nssa.
Sources close to the developments told businessdigest this week that Kanyekanye, a former president of the Confederation of Zimbabwe Industries, two weeks ago opted for leave of absence to allow investigations into allegations he accessed a US$400 000 loan from Capital, a bank that arose from the ashes of Renassaince Merchant Bank (RMB).

RMB collapsed from non-performing insider and related party loans and general abuse of depositors’ funds.

Kanyekanye refused to comment on the charges.

However, a source said Kanyekanye had opted for leave of absence after letters alleging impropriety on his part found their way to the Nssa board.

Another source said the Nssa board resolved to have the matter dealt with at Capital Bank.

“Various calls came about these allegations, and letters as well.

Nssa is not investigating this because, even if he (Kanyekenyeke) had been found on the wrong side, Nssa would have had to call for an EGM just to remove him from the board in terms of the law,” a source said. Nssa CEO James Matiza confirmed Kanyekanye had taken leave of absence from Capital Bank, adding he was waiting for a full report on what transpired from the bank’s management. “We are waiting for a full report from Capital Bank on what transpired,” Matiza said.

Capital Bank CEO Lawrence Tamayi would not be drawn to comment on the matter, referring all questions to Nssa chairman Innocent Chagonda.

Asked for comment, Chagonda said: “I don’t talk for and on behalf of Capital Bank. Please direct your questions to the bank MD or the Capital Bank board.”

Another source said the report on the findings of the investigations was supposed to be submitted to the Nssa board and management last week but the investigators asked for more time.

Nssa, Renaissance Financial Holding Limited, RMB and Econet signed an agreement two years ago that saw the pension fund emerging with an 84% stake in RMB, now Capital Bank. The deal involved a combination of cash and conversion of debt to equity.

RMB was a merchant bank formerly owned by Patterson Timba, Dunmore Kundishora and Clementine Sibve.

Nssa acquired Econet Wireless Zimbabwe’s 19,7% stake in the insurance giant Afre last year and already held more than 32% through RMB.

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