Business / Companies
Botswana shuts down Kingdom Bank
19 Jun 2015 at 02:09hrs | Views
BOTSWANA'S central bank yesterday announced it had shut down businessman Nigel Chanakira's Kingdom Bank Africa Limited (KBAL) on insolvency grounds. The only remaining bank in Chanakira's banking empire, KBAL, was put under judicial management in March this year, having been temporarily closed earlier.
The Bank of Botswana said the High Court of Botswana had granted a final winding up order for the struggling financial institutions.
"KBAL has been closed down. During the temporary management period, the temporary managers found that the asset base of the bank had been severely eroded due to a number of factors which gave rise to liquidity problems and ultimately insolvency," the central bank said.
"These problems have negatively impacted on KBAL, its ability to continue as a going concern and its ability to meet its obligations to its depositors."
The central bank said KBAL was insolvent as its liabilities exceeded its assets by around $17 million.
"Based on the information obtained during the early stages of the temporary management, the Bank of Botswana commissioned a forensic audit of the financial affairs of KBAL with a particular focus on some investments and placements at foreign financial institutions. The forensic audit is on-going," Botswana's top bank said.
Local chartered accountants Max Marinelli and Chris Bray were appointed as the bank's liquidators.
The closure of KBAL marks the end of an era for Chanakira's banking empire, after AfrAsia, formerly Kingdom Bank Limited which he founded in Zimbabwe, voluntarily surrendered its banking licence.
Mauritian company AfrAsia had bought Chanakira out of Kingdom Financial Holdings, leaving KBAL as his sole foothold.
The Bank of Botswana said the High Court of Botswana had granted a final winding up order for the struggling financial institutions.
"KBAL has been closed down. During the temporary management period, the temporary managers found that the asset base of the bank had been severely eroded due to a number of factors which gave rise to liquidity problems and ultimately insolvency," the central bank said.
"These problems have negatively impacted on KBAL, its ability to continue as a going concern and its ability to meet its obligations to its depositors."
The central bank said KBAL was insolvent as its liabilities exceeded its assets by around $17 million.
"Based on the information obtained during the early stages of the temporary management, the Bank of Botswana commissioned a forensic audit of the financial affairs of KBAL with a particular focus on some investments and placements at foreign financial institutions. The forensic audit is on-going," Botswana's top bank said.
Local chartered accountants Max Marinelli and Chris Bray were appointed as the bank's liquidators.
The closure of KBAL marks the end of an era for Chanakira's banking empire, after AfrAsia, formerly Kingdom Bank Limited which he founded in Zimbabwe, voluntarily surrendered its banking licence.
Mauritian company AfrAsia had bought Chanakira out of Kingdom Financial Holdings, leaving KBAL as his sole foothold.
Source - New Ziana
