patterson timba rmb.jpgRenaissance Merchant Bank has been placed under curatorship by the Reserve Bank of Zimbabwe (RBZ) in consultations with government for the next six months after investigations revealed the collapse of corporate governance structures within the institution.

 

Renaissance Merchant Bank came under the spotlight in the past few weeks with revelations that there has been collapse of corporate governance structures, gross abuse of depositors’ funds, capitalisation through borrowed and depositors funds, irregular shareholding structure, technical insolvency and lack of separation of ownership and management.

Addressing a news conference in the capital, Reserve Bank of Zimbabwe Governor Dr Gideon Gono said placing of the bank under curatorship is meant to protect depositors’ funds, preserve the assets of the bank and protect the stability of the financial system.

Dr Gono also indicated that the placement of the bank under curatorship will also see the removal of some individuals from office to ensure the institution addresses gross corporate governance deficiencies.

 

Mr. Reggie Saruchera of Grant Thornton and CAMELSA has been appointed thecurator which means that the powers of every director, officer and shareholder of the banking institution have been suspended.

Renaissance Merchant Bank will suspend operations for a period of two weeks to facilitate the curator’s assumption of duties.