‘Only crooks will benefit’ Minority shareholders oppose SME Bank liquidation The only people who might benefit if the SME Bank was not liquidated are those who used its money for criminal purposes, the High Court heard yesterday. JACQUELINE LOUW
The Windhoek High Court yesterday started hearing arguments in the application for the final liquidation of the SME Bank.
Senior counsel Andrew Corbett, on behalf of the Bank of Namibia as applicant, questioned the motivation of the two Zimbabwean minority shareholders of SME Bank in their stubborn opposition to the bank’s final liquidation.
The application for liquidation has been brought by the Bank of Namibia against the SME Bank, the government, the Namibia Financing Trust, the Metropolitan Bank of Zimbabwe, World Eagle Properties, and the ministers of industrialisation and finance.
The central bank took control of SME Bank in March of this year after news broke that N$174 million had been lost in a South African investment.
Corbett told the court that neither of the two Zimbabwean shareholders, the Metropolitan Bank of Zimbabwe and World Eagle Properties, had brought a single dollar to the table to recapitalise the SME Bank, which was provisionally liquidated on 11 June this year.
He added that there was no evidence that the bank could recover from its current position and that there had been no offer to buy the bank to rescue it from bankruptcy. Hence, he argued, final liquidation was the only option and was unavoidable.
He said the Master of the High Court may, with the final liquidation of a company, launch an investigation. “People may be subpoenaed, questioned and even locked up,” he said.
He told the presiding judge, Hannelie Prinsloo, that the only people who might benefit if the bank was not finally liquidated were those that used the bank’s funds for criminal or personal use or those that were holding on to it. “These people will be forced to be held accountable,” he said.
He argued that there was no possibility that the N$174 million invested with the South African BVS Mutual Bank and a Johannesburg-based company, Mamepe Capital, would ever be recovered. He referred to Mamepe as a “false investment”.
The provisional liquidators, Ian McLaren and David Bruni, informed the central bank that the Financial Services Board in Pretoria had informed them Mamepe had lost its licence pending other investigations.
Corbett elucidated on the implications of the failure of SME Bank for Namibia. According to him, N$900 million in taxpayers’ and investors’ money was used to establish the bank. This failure, he said, put the integrity of the country’s banking system in a bad light and had an impact on trade with international partners.
Advocate Anthony Bishop, assisted by Sisa Namandje, began arguments on behalf of the two Zimbabwean shareholders late yesterday afternoon and asked the court the to set aside the final order of liquidation. Bishop will continue today.
The Windhoek High Court yesterday started hearing arguments in the application for the final liquidation of the SME Bank.
Senior counsel Andrew Corbett, on behalf of the Bank of Namibia as applicant, questioned the motivation of the two Zimbabwean minority shareholders of SME Bank in their stubborn opposition to the bank’s final liquidation.
The application for liquidation has been brought by the Bank of Namibia against the SME Bank, the government, the Namibia Financing Trust, the Metropolitan Bank of Zimbabwe, World Eagle Properties, and the ministers of industrialisation and finance.
The central bank took control of SME Bank in March of this year after news broke that N$174 million had been lost in a South African investment.
Corbett told the court that neither of the two Zimbabwean shareholders, the Metropolitan Bank of Zimbabwe and World Eagle Properties, had brought a single dollar to the table to recapitalise the SME Bank, which was provisionally liquidated on 11 June this year.
He added that there was no evidence that the bank could recover from its current position and that there had been no offer to buy the bank to rescue it from bankruptcy. Hence, he argued, final liquidation was the only option and was unavoidable.
He said the Master of the High Court may, with the final liquidation of a company, launch an investigation. “People may be subpoenaed, questioned and even locked up,” he said.
He told the presiding judge, Hannelie Prinsloo, that the only people who might benefit if the bank was not finally liquidated were those that used the bank’s funds for criminal or personal use or those that were holding on to it. “These people will be forced to be held accountable,” he said.
He argued that there was no possibility that the N$174 million invested with the South African BVS Mutual Bank and a Johannesburg-based company, Mamepe Capital, would ever be recovered. He referred to Mamepe as a “false investment”.
The provisional liquidators, Ian McLaren and David Bruni, informed the central bank that the Financial Services Board in Pretoria had informed them Mamepe had lost its licence pending other investigations.
Corbett elucidated on the implications of the failure of SME Bank for Namibia. According to him, N$900 million in taxpayers’ and investors’ money was used to establish the bank. This failure, he said, put the integrity of the country’s banking system in a bad light and had an impact on trade with international partners.
Advocate Anthony Bishop, assisted by Sisa Namandje, began arguments on behalf of the two Zimbabwean shareholders late yesterday afternoon and asked the court the to set aside the final order of liquidation. Bishop will continue today.