Ex-SME Bank staff plan lawsuit
Former SME Bank employees are planning to file a class action lawsuit following the demise of the lender last year.
The former employees, through the Namibia Financial Institutions Union (Nafinu), have sought legal advice union leader Asnath Zamuee told Namibian Sun when approached for comment this week.
According to her, the matter is currently under review by their legal team.
“We have engaged our lawyers in this regard. There are a few hurdles we are still working on. We are encouraged by the commission of enquiry instituted by the liquidators. However, we are concerned the case will be carried out in secret. This is not right since various parties have an interest in the outcome thereof, such as the affected workers,” said Zamuee.
Nafinu had previously raised their intent to pursue a class action suit against the former directors of the SME Bank.
“We are of the view that the insolvent situation of the bank was as a result of gross negligence and carelessness on the part of those who were entrusted with the responsibility of ensuring the prudent administration of public funds deposited at the bank,” said Zamuee.
Nafinu felt it important that the class action suit be filed as a result of massive job losses suffered and placed the blame squarely at the feet of the former directors and senior management team of the bank.
“The board failed miserably in its oversight function and now innocent employees have to pay with their jobs. While we will continue to engage the liquidators, we wish to state that we fully understand their role and function and have no desire to make their task difficult,” said Zamuee.
Former SME Bank chairman and current secretary to cabinet, George Simataa, previously said his conscience is clear following the demise of the bank.
“I am at peace with myself. However, as a responsible citizen I am equally deeply concerned with the hopeless situation of over 200 employees of the bank, who face a dark future and economic consequences that result from the manner in which the SME Bank Limited matter was handled,” said Simataa, before adding, “I must categorically state that my conscience is very clear, as any investigation will undoubtedly exonerate me from any liability.”
Meanwhile, the High Court has ordered the setting up of a commission of inquiry that should investigate the financial collapse of the bank and the suspected disappearance of nearly N$175 million that was supposedly invested in South Africa, it was reported recently.
High Court Deputy Judge President, Hosea Angula, recently granted an order establishing the commission of inquiry in terms of the Companies Act of 2004. The inquiry is to be headed by legal counsel Natasha Bassingthwaighte, who is practising law as a member of the Society of Advocates of Namibia.
The Bank of Namibia took control of the SME Bank on 2 March 2017 after it had come to light that between N$181 million and N$196 million had been invested in questionable financial instruments in South Africa.
The SME Bank was placed in provisional liquidation on 11 July, sealing the fate of 208 employees, who are now jobless. The bank was placed under the management of liquidators Dave Bruni and Ian McLaren.
OGONE TLHAGE
The former employees, through the Namibia Financial Institutions Union (Nafinu), have sought legal advice union leader Asnath Zamuee told Namibian Sun when approached for comment this week.
According to her, the matter is currently under review by their legal team.
“We have engaged our lawyers in this regard. There are a few hurdles we are still working on. We are encouraged by the commission of enquiry instituted by the liquidators. However, we are concerned the case will be carried out in secret. This is not right since various parties have an interest in the outcome thereof, such as the affected workers,” said Zamuee.
Nafinu had previously raised their intent to pursue a class action suit against the former directors of the SME Bank.
“We are of the view that the insolvent situation of the bank was as a result of gross negligence and carelessness on the part of those who were entrusted with the responsibility of ensuring the prudent administration of public funds deposited at the bank,” said Zamuee.
Nafinu felt it important that the class action suit be filed as a result of massive job losses suffered and placed the blame squarely at the feet of the former directors and senior management team of the bank.
“The board failed miserably in its oversight function and now innocent employees have to pay with their jobs. While we will continue to engage the liquidators, we wish to state that we fully understand their role and function and have no desire to make their task difficult,” said Zamuee.
Former SME Bank chairman and current secretary to cabinet, George Simataa, previously said his conscience is clear following the demise of the bank.
“I am at peace with myself. However, as a responsible citizen I am equally deeply concerned with the hopeless situation of over 200 employees of the bank, who face a dark future and economic consequences that result from the manner in which the SME Bank Limited matter was handled,” said Simataa, before adding, “I must categorically state that my conscience is very clear, as any investigation will undoubtedly exonerate me from any liability.”
Meanwhile, the High Court has ordered the setting up of a commission of inquiry that should investigate the financial collapse of the bank and the suspected disappearance of nearly N$175 million that was supposedly invested in South Africa, it was reported recently.
High Court Deputy Judge President, Hosea Angula, recently granted an order establishing the commission of inquiry in terms of the Companies Act of 2004. The inquiry is to be headed by legal counsel Natasha Bassingthwaighte, who is practising law as a member of the Society of Advocates of Namibia.
The Bank of Namibia took control of the SME Bank on 2 March 2017 after it had come to light that between N$181 million and N$196 million had been invested in questionable financial instruments in South Africa.
The SME Bank was placed in provisional liquidation on 11 July, sealing the fate of 208 employees, who are now jobless. The bank was placed under the management of liquidators Dave Bruni and Ian McLaren.
OGONE TLHAGE
Comments
Namibian Sun
No comments have been left on this article