The Sunday News
A BULAWAYO-based burial society, Mutare Home Burial Society, has taken a local financial institution, Metbank, to court after the latter allegedly refused to release money banked by the burial society.
According to court summons, the burial society banked $5 363 with the bank, under account number 0307060613514 but the bank has since been refusing to release the money to the society whenever they have a bereavement and require the funds.
“You are hereby summoned that you within seven days after the service of these summons . . . answer the claim of $5 363,99 of care of Mutare home burial society.
“Plaintiff herein claims for release of cash being money deposited in trust. Despite several demands and withdrawals, you have neglected or refused to dispense cash trusted for society’s bereaved members and beneficiaries,” reads part of the summons.
The court papers state that in the event that the bank does not issue any opposing papers a default judgment will be issued against them and they would be required to release the $5 363 and also meet the costs of the suit on an attorney-client scale.
In an interview with Sunday News, the burial society’s chairperson, Mr John Mhlanga revealed that they had resorted to taking the legal route as the bank was frustrating them and continuous efforts to withdraw the money were seemingly hitting a brick wall.
“When we go there to try withdrawing the money they only tell us they can give us $30 which we consider to be an insult because we are a burial society and the reason we bank our money is because we want to help our members whenever there is a bereavement.
“$30 is nothing, what do they expect us to do? When we try engaging the bank officials, the bank manager, a Mr Muleya, tells us to set an appointment but he has never pitched for these appointments. He always finds excuses to cancel or postpone them, last time he even boldly proclaimed that they did not care what action we took as they were protected by the law,” said Mr Mhlanga.
He said they were not fighting anyone but were simply trying to recover what was rightfully theirs.
“We trusted that bank with our money; the least they can do is play their part and give us back our money, it is ours. We really did not want to take it to the courts but their attitude left us with no choice,” he said.
To further exacerbate problems being faced by the beleaguered bank, on Friday Umzingwane Rural District Council flighted advertisements advising residents that it had since closed its account with the bank and that the council would not be held responsible if anyone deposits money into the account.
“The local authority wishes to advise our valued clients that council has closed its account with Metbank with immediate effect. Whoever decides to deposit into this account after this publication, council will not be held responsible,” reads the advert.
Contacted for comment, the RDC’s chief executive officer, Mr Ndumiso Mpofu refused to divulge the reasons for the closure of the account saying the “bank are the best people to comment”.
“They know the reasons, I personally cannot tell you because I believe it is a private matter, but we have told our clients to stop using that account,” said Mr Mpofu.
Efforts to get a comment from bank officials were fruitless, with the bank manager, Mr Muleya, said to be holed up in a meeting.
The bank has been faced with viability problems. Last year they recorded a loss of $1,8 million due to an increase in non-performing loans.
