Thursday, 5 February 2015

Zachary Wazara companies claim $400k from Royal

By Ndakaziva Majaka
HARARE – Businessman Zachary Wazara’s companies – Spiritage Zimbabwe Limited (Spiritage) and Suremed Medical (Suremed) – are claiming nearly $400 000 from collapsed Royal Bank Limited (Royal).

According to Royal liquidator’s preliminary report, the bank owes defunct Spiritage $311 387 and another $86 530 is due to Suremed.

Apparently, Wazara’s brother, Matthew, sat on Royal’s board as a non-executive director, raising concern over conflict of interest and violation of corporate governance.

Wazara refused to comment, referring questions to Matthew.
Zachary Wazara companies claim $400k from Royal
Royal, which surrendered its banking licence in 2012, paving way for liquidation, owes creditors around $12,5 million.

From about 15 outstanding Real Time Gross Settlement (RTGs) payments to creditors – totalling $1,2 million – Spiritage is owed the largest amount, followed by Afrosoft Holdings’ $218 696.

Royal intends to start paying creditors in March this year.
Cecil Madondo, the liquidator’s agent, however, told creditors before the master of the high court last week that the payments will be in batches.

Royal’s creditors include National Railways of Zimbabwe contributory pensionsHarare Produce Sales, Fidelity Printers and Refineries and Hwange Colliery Employer Programme Fund and Funeral Account.

Madondo said the bank is owed around $1,4 million by various companies and its attorneys had recovered $244 529.

Royal was placed under provisional liquidation on February 20, 2013.

The decision followed failure by the bank to meet Reserve Bank of Zimbabwe’s minimum capital thresholds within the stipulated regulatory time frames.

It was also influenced by the bank’s failure to conduct banking business in accordance with sound administrative and accounting practices, and risk-management procedures.

Investigations by the central bank had indicated that the institution was not in a safe and sound financial condition.

As at June 30, 2012, Royal was critically undercapitalised with a core capital of $1,85 million, which was way below the minimum regulatory capital requirement of $12,5 million for commercial banks at the time. Daily News
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