Troubled Renaissance Financial Holdings Limited (RFHL)â€™s subsidiary, Afre says it has resolved to turn to shareholders to raise capital following the loss of US$6.4 million due to exposure to Renaissance.Former First Mutual Life now trading as Afre after Renaissanceâ€™s acquisition of a 33% stake in the company, is battling to recover US$6.4 million lost during the financial crisis triggered by ousted RFHL Chairman, Patterson Timba who failed to pay back borrowed funds.
Afre Board Chairman, Mr. Tawanda Nyambirai said the entity resolved to provide for the US$6.4 million lost in the scam by approaching the shareholders to raise equity and ensure that the company is well capitalised to start underwriting.
â€œAfre as a group has an exposure of US$6.4 million to RFHL and there is need for Afre to provide for the US$6.4 million lost in the scam. It is our intention to turn to the shareholder to raise equity for the company,â€ said Mr. Nyambirai.
The Afre Corporation Board is also optimistic that the recent establishment of a Related Party Transactions Committee consisting of independent non-executive directors will assist in instilling good corporate governance and upholding of policy holdersâ€™ interests.
Afre recently announced that it had lost US$6.4 million through exposure to Renaissance Financial Holdings Limited following interparty transactions emanating from the loan ousted Chairman Patterson Timba borrowed from businessman Jayesh Shah and failed to pay back.