Latest News Editor's Choice


Business / Companies

Workers' wages locked up in defunct bank

by Staff reporter
06 Mar 2015 at 08:33hrs | Views

It never rains for employees of AfrAsia Bank Zimbabwe Ltd, which was closed on Tuesday last week, as it emerged this week that a significant chunk of their January and February salaries are locked in the bank.

Some of the workers said that they could only access their salaries in dribs and drabs from their AfrAsia accounts because of the acute financial difficulties the bank was going through.

According to the Business Digest, workers however did receive $135 each as part of their February salaries with the rest locked up in their accounts.

The workers are now pinning their hopes on getting their outstanding salaries from the Deposit Protection Corporation which will pay in full up to $500 to more than 18 000 affected depositors of the financial institution.

However, some workers fear that their outstanding salaries could be used to offset loans they received from the bank, leaving them empty handed.

The closure of AfrAsia on Tuesday last week, informed sources said, was as a result of the investor, AfrAsia retreating due to huge liabilities of more than US$100 million, low capitalisation levels and a damaged reputation stemming from a costly legal wrangle.

Source - online
More on: #Bank, #AfrAsia