Union to sue SME Bank directors

17 July 2017 | Banking

The Namibia Financial Institutions Union (Nafinu) is in the process of instituting a class action lawsuit against the former directors of the bankrupt SME Bank, according to its general secretary Asnath Zamuee.

According to her, the SME Bank's directors should be made to pay the ultimate price for the demise of the former lender.

“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 prudent administration of public funds deposited at the bank,” she told Namibian Sun. According to Zamuee, it was only fair that the directors be sued for their role in the mismanagement of the SME Bank. “The board failed miserably in its oversight function and now innocent employees have to pay with their jobs. Those responsible for the mess at the bank are waiting for the dust to settle on this issue and to simply move on to their next project. This will not happen. The fight has just begun,” said Zamuee.

Ian Mclaren and David Bruni were appointed by the Master of the High Court to manage the affairs of the SME Bank in the interim as liquidators and moved quickly to issue a statement pertaining to the final pay packages of the 208 employees.

“Your claim against the bank which has absolute preference above any other claims will accordingly be as follows; one month full salary as notice pay, leave pay according to the leave records of the bank [and] severance pay allowance as calculated for each completed year of service and arrear wages and salaries,” the SME Bank liquidators said last week.

Speaking on liquidation matters, Zamuee said Nafinu would engage Ian Mclaren and David Bruni positively.

“While we will continue to engage the liquidators, we wish to state that we fully understand their role and function and have no desire in making their task difficult.

“Our fight is not against the liquidators, but against government and the former executive management as well as the board of directors of the bank,” said Zamuee.

The SME Bank was a joint venture between the Namibian government (65%), the Metropolitan Bank of Zimbabwe (30%) and controversial Zimbabwean businessman Enock Kamushinda (5%).

SME Bank's previous board was made up of cabinet secretary George Simataa as chairman, Petrina Nakale, Theofelus Mberirua, Milka Mungunda, Kamushinda and Ozias Bvute.

Zimbabwean national Tawanda Mumvuma served as CEO.

“We believe that we are the sacrificial lambs in this process that involves Zimbabwean nationals who messed up the bank and are now back in their country, leading normal lives,” said Zamuee.

Judge Hannelie Prinsloo last week ruled that the bank be placed under the control of the Master of the High Court for provisional liquidation.



OGONE TLHAGE

Similar News

 

Half a billion worth of home loans

18 hours ago | Banking

Staff reporter – Total business registered in FNB Namibia’s annual competition for estate agents amounted to about N$550 million, the group said in a statement....

Managing talent is the biggest pitfall

6 days ago - 13 April 2018 | Banking

This approach to talent is ­reactive and does not take into ­consideration the changing nature of business. The biggest pitfall for organisations is the notion...

Five considerations for start-ups looking for funding

6 days ago - 13 April 2018 | Banking

Many entrepreneurs and SME’s consider funding to be a major stumbling block when it comes to starting or growing a business. In this tough environment...

Kwanza deal: Angola to cough up N$605 million

2 weeks ago - 04 April 2018 | Banking

OGONE TLHAGEThe Banco Nacional de Angola (BNA) is making steady progress towards honouring a currency conversion agreement it signed with the Bank of Namibia (BoN)...

BoN performs better in 2017

3 weeks ago - 29 March 2018 | Banking

The Bank of Namibia has performed better financially in 2017, compared to 2016.It declared a two times higher dividend of N$213.1 million to the government,...

FNB invests in education of deserving employees

3 weeks ago - 29 March 2018 | Banking

FNB Namibia implemented the Staff Assistance Trust Education Bursary in 2008 to assist previously disadvantaged employees and/or their dependents with the educational costs for tertiary...

DBN a model for social enterprise in finance

3 weeks ago - 26 March 2018 | Banking

Staff Reporter - The Development Bank of Namibia (DBN) transcends stereotypes of financial enterprises, by reapplying profits in the interests of financial service delivery, while...

Blacklisted farmers petition Agribank

3 weeks ago - 23 March 2018 | Banking

A group of disgruntled loan holders have marched to Agribank's headquarters, as well as the finance ministry offices, to demand that their repayment periods be...

Another successful Shake-a-Can for Buy-a-Brick

3 weeks ago - 23 March 2018 | Banking

As part of its national Buy-a-Brick Day on 16 March, Standard Bank Namibia employees mobilised themselves to raise awareness and increase funding through the Buy-a-Brick...

A year of transformation

1 month - 16 March 2018 | Banking

First National Bank (FNB) Namibia appoints Rodney Forbes as the Executive Officer, Points of Presence. Rodney holds a Bachelor of Business Administration Honours degree. Octavia...

Latest News

Johannes promoted following gold

18 hours ago | Sports

Gold medallist Helalia Johannes has been promoted to the rank of Warrant Officer Class Two with immediate effect, after she won Namibia’s second gold medal...

Etosha debacle sparks national probe

18 hours ago | Environment

The environment ministry has launched a full-scale investigation at the Deeds Office in Windhoek to determine whether there is any privately owned land in Namibia's...

Acute teacher shortage

18 hours ago | Economics

The education ministry has appealed for leniency and recognition that despite the directive to reduce state wage bills the ministry is in dire need of...

Africa briefs

18 hours ago | Economics

SA's auditor general cancels all contracts with KPMGSouth Africa’s Auditor General said on Tuesday he is terminating all contracts with auditing firm KPMG over a...

NovaNam, Lalandii start new hake...

18 hours ago | Business

Staff reporter - Last week, Lüderitz-based hake fishing companies, NovaNam and Lalandii, commenced with the cutting of the steel to build the...

Ondonga heir apparent hits back...

18 hours ago | Cultural

One of the claimants to the Ondonga throne, Fillemon Shuumbwa Nangolo, has taken issue with urban and rural development minister Peya Mushelenga following his recent...

PM warns employees of shorter...

18 hours ago | Government

Prime Minister Saara Kuugongelwa-Amadhila this week warned staff members of her office that she would not accept complacency and that she would shorten the leash...

40 years after battle of...

18 hours ago | History

The Angolan president, João Lourenço will attend the Cassinga Day commemoration on 4 May as guest of honour and will lay a wreath at Heroes'...

New conservancy land disputed

18 hours ago | Environment

A Kavango West man has accused the Uukwangali Traditional Authority of stealing his land, which he claimed was now allocated to a newly proclaimed conservancy....

Load More