The Sunday Mail
Livingstone Marufu
AfrAsia’s ex-workers are assured of being paid US$3,6 million from the US$6 million pension fund kitty – the amount considered recoverable from assets still trapped in the former Kingdom bank.
Minerva Consulting, which was appointed as the administrator of AfrAsia Pension Fund by regulator the Insurance Pensions Commission, has indicated that there are serious doubts on whether the full sum that was invested by the pension fund trustees can be recovered.
AfrAsia Bank Zimbabwe, which was formed after Mauritian-based AfrAsia invested in Kingdom bank, had its licence cancelled by the Reserve Bank of Zimbabwe on February 24, 2015 after it was deemed financially unsound.
After the bank’s closure, the Pension Fund Trustees of AfrAsia Holdings were appointed liquidators to wind up the fund in order to avoid associated costs that come with an external liquidator.
Former group CEO Mrs Lynn Mukonoweshuro was appointed principal officer or chairperson. Other members were Mr Noel Mukutirwa, Mr Savious Mushosho, Mr Patrick Chitehwe, Mr Kenneth Kaseke and Mr Dale Mafunda.
Delays in paying out proceeds from the pension fund made most ex-workers restive.
Minerva Risk Advisors general manager Mr Timothy Nherudzo told The Sunday Mail Business that although the recovery process was ongoing, there was a distinct possibility that not all assets would be recovered as some had already been lost in AfrAsia Bank.
“The biggest challenge is that some fund assets were trapped in AfrAsia Bank and the Pension Fund’s liquidation board placed a 60 percent recoverability probability of those assets.
“A claim was lodged with AfrAsia Bank Zimbabwe Limited’s liquidator and the recovery process is currently taking place.
“The actual figures that were paid are confidential, but I must bring to your attention that all members were paid their one-third lump sums, which is in accordance with the law and they were informed through letters accordingly.
“The balances after payment of the lump sums above are paid in form of monthly installments and I can confirm that payments are up to date,” said Mr Nherudzo.
AfrAsia pensioners received a cumulative US$2 million in lump sum payments in August 2015. Mr Nherudzo said there was need to speed up the liquidation to ensure pensioners were paid timeously.
AfrAsia Bank directed Minerva to liquidate investments elsewhere and pay the proceeds into AfrAsia’s bank account despite clear signs that the institution had liquidity challenges which compromised accessibility of benefits by members.
Minerva tried without success to advise the fund to find an alternative banker.
Added Mr Nherudzo: “Everything has gone well so far and all payments are currently up to date, we are on the right track to recover (pensioners) funds.”
IPEC noted that part of the delays in paying out funds owed to former AfrAsia workers was mainly caused by lack of expertise and failure to conform to the Pensions and Provident Funds Act on the part of board of trustees and liquidators.
The regulator believes a new Pension and Provident Fund Bill will strengthen its supervisory role and plug loopholes in the current system.
Through engagements between IPEC, Minerva and the liquidator, claims of pensioners have been registered with the principal liquidator, the Deposit Protection Commission.
