Minister Mpofu's Allied Bank collapses

HARARE – Distressed Allied Bank, owned by Transport minister Obert Mpofu, has voluntarily surrendered its banking licence to the Reserve Bank of Zimbabwe (RBZ).

The central bank said the financial institution’s licence was revoked “in terms of section 14 (4) of the Banking Act [Chapter 24:20]”.

“The RBZ has determined that the banking institution is no longer in a safe and sound condition in that the institution is grossly undercapitalised and is facing chronic liquidity challenges,” said the RBZ, adding that Allied Bank will be liquidated in terms of section 57(1) (a) of the Banking Act.

Allied Bank is one of the six banks that failed to meet the central bank’s $25 million minimum capitalisation whose deadline lapsed end of June last year.

As at September 30, 2014, the financial institution’s capital stood at $3 million.

The bank's move to voluntarily cede the licence comes on the back of a flopped deal with a Mauritius-based consortium – led by Terence Mukupe – that was targeted at injecting around $30 million fresh capital into the financial institution, and a long engagement with the RBZ to pursue recapitalisation options.

Comments (8)

The Mpofu brags that he is not corrupt, not that mwena wakavhara his business empire is now colapsing around him !!!!! he cant take bribes from motorists kkkkk

todiizvazvo - 9 January 2015

Now that he was taken away from CHIYADZWA ministry no gems to steal. Start taking from motorists and tourists on the VF corridor where you own everything.

hezvoka - 9 January 2015

RBZ must investigate if it was not a vehicle for money laundering.

maita - 9 January 2015

Allied banking group was formed for a corrupt reason. To the criminal syndicate who were running it , I am sure it was a successful project. It has completed its mission and is no longer of any use. To ordinary depositors it was just a ride. For a person like Mpofu to surrender a licence it means the "job is finished". If he wants to open again he will go to the fetch the licence from the RBZ drawer. The Obidient Corrupt thief.

X-MAN IV - 9 January 2015

chisingapere chinoshura iweeeeeeee

big linx - 12 January 2015

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CARTRIDGE GALLERY - 12 January 2015

For record

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