DPC compensates 23 000 depositors

23 Feb, 2020 - 00:02 0 Views
DPC compensates 23 000 depositors

The Sunday News

Dumisani Nsingo, Senior Business Reporter 

DEPOSIT Protection Corporation (DPC) has disbursed $3,9 million to  23 000 depositors of six failed banking institutions, Sunday News Business has learnt.

DPC chief executive officer Mr Vusilizwe Vuma said in an interview that the corporation had to date managed to pay 41 percent of the 54 909 depositors of the failed banks.

“We have been paying all the depositors of closed banks. To date $3,9 million has been disbursed to the depositors of the six failed banking institutions namely Royal, Trust, Genesis, Allied, Interfin and Afrasia out of the Deposit Protection Fund (DPF) against an exposure of $6,4 million at the previous cover level of $500 per depositor per banking institution. The said payment represents 62 percent compensation of the insured amount. On the other hand, 22 708 (41 percent) out of 54 909 depositors by number have been compensated out of the DPF,” he said.

Mr Vuma said payments for depositors of the failed financial institutions except Genesis and Royal were still ongoing and further urged those who have not claimed their money from the corporation to do so. 

“Measures have also been put in place to reach out to depositors who have not yet received compensation from the DPF,” he said.

DPC payments to depositors take place through DPF up to the prevailing cover level, now at $10 000 (for new bank closures effective 1 January 2020) and liquidation dividends on a pro-rata basis depending on debt recoveries and asset realisation.

On the liquidation front, about $44,5 million has been paid out as dividends to creditors of the six failed contributory institutions under liquidation.

“What we are now working on is the final liquidation because we have sold most of the assets apart from some court cases that are still on-going whereby if we win those court cases then maybe we can execute and compensate the depositors. In liquidation, dividends to creditors are not guaranteed as much depends on the rate of recoveries from debtors and asset disposals through public auctions,” said Mr Vuma.

DPC is also working with the RBZ to introduce a Single Customer View system as part of its efforts to expedite the compensation of depositors of failed banks.

“What the Single Customer View does is to ensure that all the banks use one system to capture the depositors’ information. That is your ID (identification number) so that for example if there are two Moyos you can easily identify. By just clicking a button you will be able to know that this is T. Moyo who is having a different ID number, so that we don’t duplicate payments. Also you get information about addresses and so on because at the moment you may find most of the banks don’t have adequate information to enable us to quickly compensate depositors, which is why we want that system because it will then enable us to quickly compensate depositors,” said Mr Vuma.

DPC recently opened an office in Bulawayo to cater for clients in the southern parts of the country.

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