Business / Companies
'Rampant corruption threatens Zimbabwe banking sector'
13 Jul 2017 at 01:52hrs | Views
DEPOSITORS Protection Corporation (DPC) chief executive officer, John Chikura, has said the worsening economic crisis facing the country was hindering the performance of most banks, but warned that most of them were facing total collapse, as they were engaging in corrupt activities.
Chikura made the remarks at a breakfast meeting with various bank executives in Mutare yesterday.
The meeting was meant to update stakeholders on the functions of the deposit protection scheme.
"Yes, the economy is not performing and, naturally, the banks would struggle, but the bad corporate practices will make the situation even worse. It is what we do that contributes to the failure of banks,'' he said.
"Corruption, corruption is killing us in the sector. Two weeks ago it came out that there is an issue of a piece of land that was sold to an organisation for $3,5 million and the board does not know where the land is."
Chikura was referring to the mystery over the National Social Security Authority's (NSSA) missing 529 hectares of land acquired using pensioners' funds in Chegutu 14 years ago.
This came as NSSA board chairman, Robin Vela confirmed on Monday that they bought the "missing land" from businessman Philip Chiyangwa.
"Last Friday, we heard of about a $500 000 loan facility that was given to senior government officials. They only borrow and they don't pay back. Let's promise, as a sector, that we are not going to engage in corruption.
"My wish is to see strong banks that are surviving. Banks are like human beings, something should be done for them to survive.
"Bad governance does affect our sector. It's a big challenge facing our banking sector. We need to justify why we are straightforward in a country where corruption is rampant."
Chikura made the remarks at a breakfast meeting with various bank executives in Mutare yesterday.
The meeting was meant to update stakeholders on the functions of the deposit protection scheme.
"Yes, the economy is not performing and, naturally, the banks would struggle, but the bad corporate practices will make the situation even worse. It is what we do that contributes to the failure of banks,'' he said.
"Corruption, corruption is killing us in the sector. Two weeks ago it came out that there is an issue of a piece of land that was sold to an organisation for $3,5 million and the board does not know where the land is."
Chikura was referring to the mystery over the National Social Security Authority's (NSSA) missing 529 hectares of land acquired using pensioners' funds in Chegutu 14 years ago.
This came as NSSA board chairman, Robin Vela confirmed on Monday that they bought the "missing land" from businessman Philip Chiyangwa.
"Last Friday, we heard of about a $500 000 loan facility that was given to senior government officials. They only borrow and they don't pay back. Let's promise, as a sector, that we are not going to engage in corruption.
"My wish is to see strong banks that are surviving. Banks are like human beings, something should be done for them to survive.
"Bad governance does affect our sector. It's a big challenge facing our banking sector. We need to justify why we are straightforward in a country where corruption is rampant."
Source - newsday
