DPC BAILS OUT DEPOSITORS:
THE Deposit Protection Corporation (DPC), which was set up by Government in 2003 in response to high levels of bank failures, says it has played its role remarkably up to now.
The DPC, which pays depositors when a bank closes, is currently making payments for AfrAsia Bank, Allied Bank, Interfin Bank, Trust Bank and Royal Bank; and has successfully resolved issues with other failed banks.
Currently, the DPC is paying $1 000 to depositors whose banks would have failed.
DPC board chairperson, Mr Agmos Moyo, last week said the institution has scored more remarkable successes including having a “sizable balance sheet” of $50 million.
Mr Moyo said this during a farewell dinner for former chief executive officer Mr John Chikura, who left the institution after 15 years.
“Under his management, the Deposit Protection Corporation recorded the following notable achievements; at inception, the institution operated using a few sections of the Banking Act,” said Mr Moyo.
“The Governor (of the Reserve Bank of Zimbabwe) was the chairman of the Board, hence DPB (Deposit Protection Board) was always associated with RBZ.
“However, today it is an autonomous institution, with its own Act, the Deposit Protection Corporation Act Chapter 24:29 (and) the DPC now has a sizeable balance sheet.”
Mr Moyo said during the leadership of Mr Chikura, several member institutions (banks), that failed were resolved successfully.
Currently the DPC is resolving six banks.
Added Mr Moyo: “Tetrad’s balance sheet was successfully restructured and now awaiting investors. MicroKing, a subsidiary of the now closed AfrAsia was successfully disposed off, with no disruption to operations.
“AfrAsia Capital was also successfully resolved with no disruptions to operations.”
DPC also has offices in Harare and Bulawayo, where it operates from its own premises.
In the formative stages of the DPC, Mr Chikura operated from the RBZ.
The DPB got a loan by the RBZ to start its operations.
For his exploits, Mr Chikura has been rewarded top posts including being the current Africa regional chairperson.
Internationally, Mr Chikura is the treasurer of the International Association of Deposit Insurers (IADI).
During Mr Chikura’s time, the DPC received several awards including the Best Corporate Governance Practices Award (2nd Prize - State Enterprises and Parastatals) granted by the Institute of Chartered Secretaries & Administrators in Zimbabwe (ICSAZ).
In 2015, the DPC got the Most Improved Deposit Insurer Award granted by the IADI.
The IADI recognition raised the country’s flag on the international front, further attesting to DPC’s leadership excellence and continued efforts to become a top deposit protection authority through efforts to enhance efficiency and improve compliance with international best practices in the administration of the organisation and the Deposit Protection Scheme.