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StanChart orders IDC to close its bank account

by Staff reporter
29 Jan 2014 at 05:25hrs | Views
Foreign-owned bank Standard Chartered Zimbabwe has ordered the Industrial Development Corporation to close its bank account with the institution next month, an executive told a parliamentary committee yesterday.

Presenting oral evidence before the Portfolio Committee on Industry and Commerce, IDCZ general manager Michael Ndudzo said the company was facing many challenges that included sanctions and had not received any government funding for the past 22 years.

"We have been told to close our accounts at Standard Chartered by the end of this month. We received official communication on January 10 instructing us to close the account by the 26th of this month," Ndudzo said.

"We cannot do electronic transfers as a corporation, it's suffocating us.

"It seems our corporation must not be allowed to breathe because it's perceived to be buttressing the economy.

"Although the European Union took us out (of the sanctions list), we are still there on Zidera (The Zimbabwe Democracy and Economic Recovery Act)," he said.

Zidera was passed by the United States Congress sanctioned to provide for a transition to promote democracy and economic recovery in Zimbabwe.

The corporation last year lost $2,1 million from Olivine Industries and $20 000 to Office of Foreign Assets Control.

Agribank and Infrastructure Development Bank of Zimbabwe were removed from the United States sanctions list last year. IDCZ subsidiaries include Almin Metal Industries, Amtec, Sunway city, Allied Insurance, Zimbabwe Copper Industries, Deven Engineering, Willowvale Mazda Motor Industries, Sable Chemicals, Zimphos, Dorowa Mineral among others.

Source - herald - newsday