Tetrad directors risk prosecution

HARARE - Tetrad Investment Bank (TIB) directors are facing prosecution after disgruntled depositors met on Thursday to discuss the fate of their fortunes trapped in the now defunct financial institution.

Members of TIB Trust — recently formed with the aim of probing the struggling institution for a forensic audit — told Business Live that they also intended to discuss prospects of a potential investor that the bank’s former judicial manager Winsley Militala had promised.

“We are very concerned about our monies that are locked up in Tetrad and we are happy that the Depositor’s Protection Corporation has taken over the judicial management but we will not just stand and watch, we now want the prosecution of all directors,” said one creditor who spoke on condition of anonymity.

The majority of TIB depositors want the bank’s management to be prosecuted for abuse of funds and mismanagement among other corporate crimes.

Tetrad, which was in November last year suspended by the central bank from taking deposits and issuing loans until completion of its recapitalisation exercise, owes $22 million to secured creditors and an additional $41 million to unsecured creditors.

As at May 31, TIB liabilities exceeded assets by almost $30 million, as the cash position was around $500 000.

The now defunct bank — part of the Tetrad Holdings Limited group, which comprises an asset management company and a micro-lending unit — had a negative capital of nearly $20 million as at December 31, 2014.

As part of its mandate, the Trust seeks to understand the reasons behind delays in securing an investor for the bank and demands for a forensic audit into the activities of the bank, its associates as well as officials.

“We are taking the issue to court because these people have been lying to us and wasting our time, now what we want is justice we don’t care if they get the investor, all we want now is our money,” said another depositor in the Trust’s secretariat.

 

Comments (6)

May be the depositors should consider taking over the bank and converting this debt to equity.

BUSINESS - 25 July 2015

taking over a company in red does not make sense the directors should liquidate the assets they bought wit the money they stole and pay these people, they cant sit pretty when investors are languishing in poverty.

David Panganai - 25 July 2015

It's not just about Tetrad. It's also about Interfin and a host of other banks which are all household names. Let's follow the American way - I mean how they dealt with the Enron fraudsters like our dark suit and red tie schemers. Sent them to Chikurubi - that's the place where they belong.

Dopori - 25 July 2015

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CARTRIDGE GALLERY - 27 July 2015

Heads should roll and this should be extended to other equally struggling banks. We are setting a wrong precedent and confirming that the best way to rob a bank is to own it. Please STOP IT !

tarisai Mavetera - 28 July 2015

Mbavha dzakauraya ma banks veduwe. It is sad that after people have spent depositors funds and invested in all sorts, here in Zimbabwe they simply walk the streets and even boast of how much money they have. Where is the justice?? In the meantime several families lives have been affected.

Wedenga!!!! - 3 August 2015

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