SME Bank liquidators intensify recovery drive

Nearly a decade after the collapse of SME Bank, the bank's liquidators continue to widen their recovery campaign, with the latest High Court proceedings seeking more than N$17.2 million, excluding interest, from Dore Pharmaceutical (Pty) Ltd and two individuals.

The claim against Dore Pharmaceutical, John Maritz and Sabina Maritz forms part of an extensive litigation strategy aimed at recovering money allegedly lost in the bank's collapse. The recovery drive has seen the liquidators pursue former executives, directors, companies, borrowers and other alleged beneficiaries of SME Bank funds through court proceedings in Namibia, South Africa and Zimbabwe.

The proceedings were instituted while veteran liquidator David Bruni was serving alongside Ian McLaren as joint liquidator. Bruni died in February 2026 at the age of 76.

According to court papers, the liquidators are claiming N$13 799 754.02, together with interest at 7.5% per annum from 1 December 2020, as well as a further N$3 485 933.40 with interest from 1 January 2021.

They are also seeking costs on the attorney-and-client scale.

The combined principal claim amounts to N$17 285 687.42, although the total would increase should the court award the interest claimed.

The High Court has not yet determined the matter.

The latest claim follows years of litigation to recover assets from the failed bank.

Seeking payback

The largest civil action remains the N$247.6 million claim against former SME Bank chairperson Enock Kamushinda, former chief executive Tawanda Mumvuma, former finance manager Joseph Banda, former finance department employee Chiedza Goromonzi, Lyndon Gaidzanwa and companies linked to Kamushinda.

In those proceedings, the liquidators allege that funds recorded as investments, software and computer purchases as well as building expenses were diverted through a network of transactions before reaching various recipients.

Court papers also trace approximately N$64 million through South African company Asset Movement and Financial Services (AMFS), alleging that the money was withdrawn in cash and handed to individuals associated with the bank.

That litigation culminated in a Supreme Court judgment delivered on 13 March 2024, which upheld the High Court's findings concerning the removal of more than N$247 million from SME Bank.

The Supreme Court also directed that the record be forwarded to the prosecutor general after concluding that the papers disclosed prima facie evidence of criminal conduct.

Kamushinda later entered into a settlement agreement with the liquidators under which he undertook to pay N$140 million. The agreement was made an order of the High Court on 25 January 2021, with interest at 20% per annum running from 26 March 2021 until final payment.

Court documents and execution notices show that N$1 million was paid in March 2021 and a further N$2 million in June 2021, after which payments ceased. The liquidators subsequently pursued execution against Kamushinda's interests in Windhoek Monsoon Investments CC and Harrogate Investments (Pty) Ltd, which own properties in Kleine Kuppe and Eros respectively.

The settlement followed earlier offers of N$120 million and N$130 million made on Kamushinda's behalf, both of which were rejected before the parties agreed on N$140 million.

Across borders

The recovery effort has also extended beyond Namibia's borders.

In July 2026, the High Court of Zimbabwe recognised the Namibian winding-up as foreign main proceedings and recognised Ian McLaren and the late David Bruni in their capacities as SME Bank's court-appointed liquidators.

The Zimbabwean court ruled that the liquidators were entitled to administer SME Bank assets situated there and could apply to register and enforce Namibian judgments in that country. The ruling did not itself register those judgments or establish that any assets had already been recovered in Zimbabwe.

The liquidators have also pursued former board members.

Six former directors were sued for the repayment of approximately N$1.7 million in directors' fees that the liquidators contend were not authorised by shareholders. They further sought orders holding the former directors personally liable for the bank's debts, alleging that the bank's business had been conducted recklessly.

The then minister of presidential affairs Frans Kapofi later confirmed that he paid N$1 million to settle the civil claim against him while denying wrongdoing, saying he chose to avoid prolonged litigation.

In South Africa, the recovery effort secured preservation orders over bank accounts containing approximately N$55.3 million linked to AMFS, Moody Blue Trade and Invest 14 and KE2 Ample. The orders froze the funds while ownership disputes were litigated, although public records do not establish how much was ultimately transferred to the SME Bank liquidation estate.

In July 2024, the liquidators reported that they had recovered about N$130 million. They also disclosed that roughly N$100 million had been spent on legal fees, forensic investigations and recovery efforts, leaving approximately N$30 million available for distribution among more than 23 000 depositors.