The stink from the SME Bank

So the chickens have finally come home to roost at the SME Bank, forcing the Bank of Namibia to place it under curatorship with effect from Wednesday, because of “questionable investment in South African financial instruments”. The central bank deserves praise for finally taking steps against the board as well as the management of the SME Bank which is implicated in the scandal involving over N$180 million. The central bank has now decided to implement a number of support measures, which includes the appointment of an interim CEO and board while investigations into the matter continue. It must be said that the shenanigans at the SME Bank has been a long time coming, but typical of our government who is the majority shareholder in this business, it chose to adopt a “see-no-evil, hear-no-evil, speak-no-evil” stance. And now that the cat is out of the bag, there is no sense in pretending that all is well. The board and management have fiercely been defending the operations at the SME Bank, to the extent of some media houses being threatened with legal action. Principled leaders such as finance minister Calle Schlettwein and the economic planning minister Tom Alweendo are part of a few in Cabinet who publicly raised alarm bells regarding the trouble brewing at the bank. “We can admit that the SME Bank is not doing what it is intended to do. We are very aware of that,” Alweendo was quoted as saying. The ownership structure of the bank has also been frowned upon by many following revelations that one of the individual shareholders Enock Kamushinda has a tainted reputation. There are also allegations that the brains behind the SME Bank unsuccessfully tried to convince MTC to invest its money at the bank. And then there is the N$11 million scandal involving Social Security Commission funds apparently meant for the training needs of the struggle kids, which was signed off by the head of state and deposited at the SME Bank. The very same bank has also been accused of favouring Zimbabweans at the expense of Namibians when it comes to dishing out loans. It is therefore our sincere hope that those implicated are held accountable for their actions.