BCC recovers only $32 000 from Metbank

Published: 10 July 2018

THE Bulawayo City Council (BCC) has recovered from the Metbank $32 512 of the $1 million it lost after the financial institutions went under a few years ago.

The local authority's finance department on March 29, 2018 reported that the city council conducted business with financial institutions such as Tetrad Investment Bank, Metbank, Allied Bank and AfrAsia Bank.

Some of the banks have since folded while others are tottering on the brink of collapse, a situation that has put about $1,048 million investment in danger.

Council held an account with Metbank between 2011 and 2014. In 2014, the bank experienced liquidity challenges, leading to council closing the account on February 14, 2014. The account had a balance of $146 513 that the bank had failed to remit to the Zimbabwe Revenue Authority.

"Of that balance, $6 513 had been used partly to pay creditors that had accounts with the bank and another part was withdrawn in cash. The bank paid the balance of $140 000 in instalments between January 2016 and December 2017.

Interest of $32 512 accrued on the balance was still outstanding. Efforts were being made to recover it," council reported then.

However, according to the latest council minutes, Metbank had since cleared its outstanding balance of $32 512.

The matter came to light when the BCC's town lands and planning committee was discussing the bank's proposal to partner with council in the development of 816 high density residential stands in Emganwini.

The local authority is yet to recover $476 544 in money market investments it had placed with Allied Bank, whose licence was cancelled by the Reserve Bank of Zimbabwe on January 8, 2015.

BCC is also owed $2 287,40 by the now defunct AfrAsia Bank, which folded on February 24, 2015. The local authority had investments totalling $536 221,13 in Tetrad Investment Bank, when it was placed under judicial management on January 29, 2015.

Council was paid $5 500 on November 29, 2017 and issued with 5 262 220 shares valued at $526 222.
- newsday