Trust Bank as­sets face the ham­mer

Chronicle (Zimbabwe) - - Business -

AS­SETS be­long­ing to closed Trust Bank Cor­po­ra­tion, which is un­der liq­ui­da­tion, will next week go un­der the ham­mer as the Deposit Pro­tec­tion Cor­po­ra­tion (DPC) moves to mo­bilise funds to com­pen­sate de­pos­i­tors and cred­i­tors af­fected by clo­sure of the financial in­sti­tu­tion.

Trust Bank is one of the sev­eral failed financial in­sti­tu­tions that the Re­serve Bank of Zim­babwe (RBZ) shut down in re­cent years.

The bank was closed on De­cem­ber 6, 2013, af­ter it was es­tab­lished that its manage­ment was abus­ing de­pos­i­tors’ funds.

At its clo­sure, the bank had a core cap­i­tal of $1.9 mil­lion against a min­i­mum re­quire­ment of $25 mil­lion.

An au­tonomous in­sti­tu­tion that the Gov­ern­ment put in place to en­sure that de­pos­i­tors were not prej­u­diced af­ter col­lapse of any financial in­sti­tu­tion, the DPC was tasked with liq­ui­da­tion of Trust Bank.

The DPC is still in the process of es­tab­lish­ing how much de­pos­i­tors and other cred­i­tors were owed as well as re­cov­er­ing what the bank was owed af­ter a se­ries of law­suits that re­sulted in the bank be­ing placed un­der final liq­ui­da­tion in May this year.

In a “liq­ui­da­tion sale” no­tice, lo­cal auc­tion­eer, Ham­mer and Tongues, in­structed by the DPC, said it would sell an as­sort­ment of Trust Bank as­sets on Au­gust 25.

The as­sets in­clude over 40 ve­hi­cles as well as of­fice fur­ni­ture such as com­put­ers and print­ers, desks and chairs, tele­vi­sions as well as gen­er­a­tors.

The DPC paid out about $2 mil­lion to Trust Bank de­pos­i­tors last year in line with its man­date which at the time al­lowed it to pay a max­i­mum of $500 to ev­ery af­fected ac­count holder at the time the bank closed.

Last year, the DPC also sold as­sets be­long­ing to another failed financial in­sti­tu­tion, Al­lied Bank, to raise funds to com­pen­sate de­pos­i­tors and other cred­i­tors. — New Ziana.

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