Integrated Protection Scheme on the cards
availability would help enhance production considerably.
“About $1,5 million will be required for this retooling. The company is looking for investors or partners with capacity to help upgrade, expand and modernise the business,” said Mr Mushohwe.
Dete Industrial Ceramics started operating in 1989 and the company used to be a major supplier of refractory or fire bricks. Its biggest customers were mostly iron smelting companies notably Ziscosteel, which it was supplying with fire bricks for the relining of its furnaces.
Due to depressed business, the company has over the years been forced to retrench part of its workforce from a high of 200 in 2007 to only 20 employees to date.
However, Mr Mushohwe said prospects of the company turning DOMESTIC financial safety net players are engaged in consultations with a view of establishing an Integrated Protection Scheme (IPS) in a bid to enhance depositors’ protection and safeguard people’s funds in various investment portfolios.
Deposit Protection Corporation (DPC) chief executive officer Mr John Mafungei Chikura said plans of setting up an IPS are at an advanced stage.
“There are on going consultations among all the safety net players regarding establishment of an IPS,” said Mr Chikura.
Presently DPC is only protecting banks depositors. The concept of an IPS has been a success in countries such as Malaysia, South Korea and the United Kingdom.
An IPS is a system where a single agency, usually a deposit insurer, provides a guarantee or protection to investors with capital market intermediaries (Investor Compensation Scheme), policyholders of insurance companies (Insurance Compensation Scheme) and depositors in deposit-taking financial institutions (Deposit Protection Scheme) for the loss of their funds in the unlikely event that their bank, microfinance bank, insurer, or capital market intermediary fails.
DPC was appointed liquidator of six failed CBIs in final liquidation as well as provisional judicial manager of one failed institution in provisional judicial management.
DPC payments to depositors take place on two fronts namely the Deposit Protection Fund (DPF) up to the prevailing cover level, currently $1 000 and liquidation dividends on a pro-rata basis depending on debt recoveries and asset realisation.
“To date $3,2 million has been disbursed to the depositors of the six failed banking institutions namely Royal, Trust, Genesis, Allied, Interfin and Afrasia out of the (DPF) paid against an exposure of $6,4 million,” said Mr Chikura.
The payment represents a slightly more than 50 percent compensation of the insured amount.
“Payments for depositors of these institutions except Genesis are still ongoing and we urge those who have not claimed their money from DPC to do so,” said Mr Chikura.
He said on the liquidation front, about $8,57 million has been paid out as dividends to creditors of the six failed CIs under liquidation.
“The average estimated dividend to concurrent creditors is about 15 percent. Total liabilities of banking institutions under liquidation are $284 million against total assets at $93,4 million,” said Mr Chikura. around its fortunes were high considering the massive infrastructural development projects earmarked in Matabeleland region and in various parts of the country.
“Harare and Bulawayo have been good markets for the limited production done by the company at present. With more production there is scope to increase supply given huge residential developments in the two cities.
Hwange, Lupane and Victoria Falls are also increasingly taking products that the company is producing,” he said.
The company has over the years received a number of enquiries on the export market.
“There are export customers in Botswana and Zambia that we have supplied in the past who can be better served if production can be increased,” said Mr Mushohwe.