Genesis Bank in liquidation

HARARE - Troubled Genesis Investment Bank (Genesis) is in liquidation selling off its properties to pay off creditors and depositors.

The institution voluntarily surrendered its license to the Reserve Bank of Zimbabwe (RBZ) in June after failing to secure an investor.

At its closure, Genesis had $4 600 in its Real Time Gross Settlement (RTGS) account, $2 788 in cash and $1 090 in its nostro balances against $1 141 392 in loans and advances, rendering it technically insolvent.

Grant Thomson Camelsa (GTC) is handling the liquidation process in collaboration with the Deposit Protection Corporation (DPC).

“Tenders are hereby invited … to purchase a company lodge located in Vumba,” said GTC.

Since 2009, Genesis Bank has engaged numerous investors in a bid to raise cash to meet the RBZ’s $12,5 million minimum capital requirement.

Sources close to the developments say most of Genesis’ movable properties such as furniture, desktops, and vehicles among others are currently being disposed through auctioneers.

“At the moment we are still in the process of paying out $150 to insured depositors and our hope is that the sale of the lodge will aid our efforts to pay out the bank’s creditors and all depositors,” said one source at the DPC, but denied to give indications on the expected price the lodge might sell.

DPC administers the Deposit Protection Fund, whose objective is to compensate depositors for losses incurred in the event of insolvency of a contributory institution.

However, as of last month five creditors claimed over $600 000 to the DPC, with the number of creditors expected to rise to ten.

Some of the big creditors include the National Social Security Authority, owed $800 000.

In his 2013 National Budget presentation Finance minister Tendai Biti emphasised the need to recapitalise the Deposit Protection Fund so that bank depositors are adequately compensated during bank failures. - Jonh Kachembere

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