HomeBusiness DigestKanyekanye ‘guilty’ of loan manipulation

Kanyekanye ‘guilty’ of loan manipulation

THE Capital Bank board has cleared its chairman Joseph Kanyekanye of charges of abusing his position to access a US$400 000 loan and that his wife secured a US$14 000 facility from the same institution, businessdigest has established.

Report by Chris Muronzi

But he was found guilty of manipulating the loans committee to approve loans to companies that owed Allied Timbers, a company he manages as chief executive offficer.

Sources say Kanyekanye would facilitate Allied Timbers’ debtors’ efforts to get loans from Capital Bank. Once the debtors got loans, they would then settle their dues to his company. The board found this “distasteful” and a clear case of conflict of interest, which amounted to abuse of office.

Sources say the Capital Bank board is awaiting guidance from the Reserve Bank of Zimbabwe on whether Kanyekanye is still a fit and proper person top remain in his position.

The board two weeks ago instituted investigations into allegations Kanyekanye abused his position to access a US$400 000 loan from the bank, among other allegations.

However, the source could not shed light on the findings of the investigators on other allegations Kanyekanye was facing, such as abusing his position as a non-executive and independent chairman to ensure his former colleague at the Confederation of Zimbabwe Industries secured a job at Capital Bank.

The source could not comment on whether Kanyekanye had been cleared of the charge that his wife was awarded a tender to supply corporate wear to Capital bank.

Kanyekanye also sits on the National Social Security Authority (Nssa) board.

Sources close to the developments told businessdigest this week Kanyekanye, a former president of the Confederation of Zimbabwe Industries, three weeks ago opted for leave of absence to pave way for investigations into the allegations.

The investigators found the charge of abusing his position to access a US$400 000 loan to be without basis, according to a source on the board.

Sources say a board meeting was convened at Capital Bank in the absence of Kanyekanye, who was said to be attending a Nssa board meeting on the same day.

A board member, added the sources, had asked Capital Bank CEO Lawrence Tamayi, an executive director at the financial institution, to be excused from the meeting, whose agenda was to deal with the Kanyekanye issue, among other matters.

At the same meeting, a report on the findings of the investigators was presented to the board for consideration and adoption.

Questions sent to acting chairperson Rungamo Mbire on the outcome of the investigation on Wednesday had not been answered at the time of going to print, while additional calls to his phone went unanswered Wednesday night.

Kanyekanye refused to comment on the board’s findings, saying he had not attended the board meeting at Capital Bank and had not been briefed on what had transpired in the meeting.

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

The Nssa board then resolved to have the matter dealt with at Capital Bank.

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

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