The Sunday Mail
One of ZB Financial Holdings’ major shareholders, Transnational Holdings Limited, has refuted claims that it was involved in the controversial payment of a dividend, unlawful appointment of a senior executive and other corporate governance shenanigans.
RBZ Governor Dr John Mangudya wrote to ZBFH chief executive Mr Ron Mtandagayi on March 7, 2017 raising a number of issues against THL.
The apex bank chief said a dividend of US$658 699 paid to THL must be reversed by March 31, 2017.
Dr Mangudya also ruled that the appointment of ZBFH chief operations officer Mr Mike Manyika was not approved by the RBZ.
But in a statement yesterday, THL representative and veteran banker Mr Nicholas Vingirai said: “THL, as a substantial investor in ZBFH, has a duty to protect the company against vultures bent on tarnishing the good image of the group and its stakeholders.
“This is not something that can be achieved through the Press but behind closed doors (through) diligent engagements. That said, it is necessary for THL to categorically state that all the allegations reported in the Press, regardless of the information source, are incurably false, scandalous and must be treated as such.
“Such falsehoods can only be a product of individuals who have sinister motives. A fair-minded reader, even without the benefit of hard facts, will be inclined to dismiss most if not all the allegations for lack of merit.”
Mr Vingirai said although the RBZ issued the corrective order, there was never a meeting between the central bank and ZBFH board, and the latter were ready to supply the apex bank with information to prove that sound governance prevailed at the institution.
He added that it was worrying that the RBZ letter was leaked to the media on the same day it was sent to the bank.
“Such Machiavellian manoeuvres must be condemned with the deepest disgust and appropriate measures must be taken by all parties to the communication to ensure that such incidents do not occur again in future,” said Mr Vingirai.
THL is the second-biggest shareholder in ZBFH with a 26 percent stake; while the National Social Security Authority has 37,79 percent.
Approached for comment, Dr Mangudya declined to discuss the matter citing ethical considerations.
“Kindly also be advised that the bank performs its functions on an impartial basis and that integrity is one of our revered values,” he said.
However, insiders said there were ongoing talks involving THL, the RBZ and the Finance Ministry to sort out their differences.
Sources said THL was of the view that the RBZ could not be involved in resolving the matter of what was due to the company as the central bank was “itself the cause of the problem”; adding that Mr Vingirai and his associates felt that major shareholder NSSA was also “interfering” with THL’s stake in ZB Financial Holdings.
The issue with the RBZ relates to the fact that his shareholding is compensation for the loss of his Intermarket Holdings Limited in 2004.
The RBZ had bailed out Intermarket subsidiaries and then converted that debt into equity via a High Court scheme of arrangement.
ZB Financial Holdings subsequently bought Intermarket in 2006, but the High Court in 2013 ruled that Mr Vingirai be given back control of the shares he had once held in financial institutions.
This saw him getting the 26 percent stake in ZBFH, and since then there has been a tussle for control at the company.
Mr Vingirai was the first black Zimbabwean to open a discount house when he formed Intermarket in February 1991 in response to Government’s efforts to democratise the banking sector.
He has also been involved at a senior level in establishing reputable financial institutions in Ghana, Zambia and Nigeria.
