BoN wins SME Bank liquidation bid
High Court Judge Hannelie Prinsloo this morning ruled in favour of the Bank of Namibia in the liquidation matter of the now defunct SME Bank.
The application to finally liquidate the SME Bank was brought by the Bank of Namibia against the government, the Namibia Financing Trust, the Metropolitan Bank of Zimbabwe, World Eagle Properties, and the ministers of finance and industrialisation. The central bank during March, took control of the SME Bank after it came to light that N$174 million was lost in an investment made in South Africa.
Advocate Anthony Bishop, instructed by Sisa Namandje, on behalf of his clients, the two Zimbabwean minority shareholders, the Metropolitan Bank of Zimbabwe and World Eagle Properties, said the application by the central bank did not comply with certain provisions of the companies and banking acts and that the provisional order of liquidation was not published. Bishop asked the court to set aside the provisional order which was made on 11 July of this year.
Advocate Andrew Corbett (SC), instructed by Advocate Deon Obbes had argued for their client, the Bank of Namibia, that the SME Bank was not able to recover its N$174 million from South Africa and said that since the provisional liquidation order, nothing had changed in the bank's financial position.
Judge Prinsloo ordered the defendants to pay costs.
STAFF REPORTER
The application to finally liquidate the SME Bank was brought by the Bank of Namibia against the government, the Namibia Financing Trust, the Metropolitan Bank of Zimbabwe, World Eagle Properties, and the ministers of finance and industrialisation. The central bank during March, took control of the SME Bank after it came to light that N$174 million was lost in an investment made in South Africa.
Advocate Anthony Bishop, instructed by Sisa Namandje, on behalf of his clients, the two Zimbabwean minority shareholders, the Metropolitan Bank of Zimbabwe and World Eagle Properties, said the application by the central bank did not comply with certain provisions of the companies and banking acts and that the provisional order of liquidation was not published. Bishop asked the court to set aside the provisional order which was made on 11 July of this year.
Advocate Andrew Corbett (SC), instructed by Advocate Deon Obbes had argued for their client, the Bank of Namibia, that the SME Bank was not able to recover its N$174 million from South Africa and said that since the provisional liquidation order, nothing had changed in the bank's financial position.
Judge Prinsloo ordered the defendants to pay costs.
STAFF REPORTER
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