The Sunday News
THE Deposit Protection Corporation (DPC) has paid $1,7 million of the insured depositors from the closed AfrAsia bank bringing relief to those customers whose money was locked in the collapsed financial institution.
In February this year, the Reserve Bank of Zimbabwe cancelled AfrAsia Bank Zimbabwe Limited (formerly Kingdom Bank)’s licence after it failed to meet minimum capital requirements.
DPC public relations manager Mr Allen Musadziruma told the Sunday News Business on Friday that payment of AfrAsia depositors was going on smoothly and over 50 percent of the bank depositors had been paid up.
“As of 22 October 2015, DPC has paid 50 percent of the insured deposits. This translates to about $1,7m that has been paid to date out of a total insured amount of $3,4m. Insured deposits represent the guaranteed amount, payable up to a maximum of $500, that depositors will receive if they submit their claim form,” said Mr Musadziruma.
“What this means is that all clients of the closed bank with balances equal to or below $500 will be reimbursed in full the amount that was in their account at the time of bank closure provided they submit a duly completed claim form. Deposit balances above $500 will still be paid through the liquidation process on a pro-rata basis.”
Mr Musadziruma said a second meeting of creditors and members of AfrAsia Bank would be held before the Master of the High Court in Harare and the Deputy Master of the High Court in Bulawayo.
He said the Harare meeting would be held on 18 November.
“The Bulawayo meeting will be held before the Deputy Master of the High Court at Holiday Inn, Bulawayo on 19 November 2015,” he said.
Mr Musadziruma said the purpose of the meeting was for submission of proof of claims by creditors and consideration of the liquidator’s report.
“If you are owed money by AfrAsia Bank and you have not lodged your claim with the Master of the High Court, please contact our offices so that you can collect and complete the proof of claim forms,” he said and added that the proof of claim forms were also available via electronic mail upon request and can also be downloaded from the company website.
“You will be required to complete these forms in triplicate and lodge them with the Master of the High Court in Harare or the Deputy Master of the High Court in Bulawayo, at least 48 hours before the relevant meeting,” he said.
He said individuals or appointed representative of an organisation should then appear in person before the Master of the High Court Harare on 18 November 2015 or the Deputy Master of the High Court Bulawayo at Holiday Inn, Bulawayo on 19 November 2015 in order to prove a person’s claim.
“If you, or your representative are not in attendance on the day of the meeting, your claim will be rejected for non-appearance,” he said Mr Musadziruma.
He said depositors whose claims were provisionally accepted at the first meeting, must not submit another set of forms. He said payments to other depositors of closed bank namely Royal, Trust, Genesis, Allied, Interfin were still in progress.
The Deposit Protection Fund was established under Section 13 of the Deposit Protection Corporation Act (Chapter 24:29). The primary objective of the fund is to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.
The fund is vested in and administered by the Deposit Protection Corporation (DPC).
The corporation commenced operations on 1 July 2003, and its primary objective is to provide deposit protection to depositors in institutions licensed to operate banking or finance business in Zimbabwe such as commercial banks, merchant banks, building societies, finance houses, discount houses and deposit-taking microfinance banks.
