Royal Bank creditors to submit claims next week

Defunct Royal Bank Zimbabwe (Pvt) Ltd's creditors and members will next week meet with the Deposit Protection Board (DPC) before the Master of High Court for the submission of claims.

The meeting will also see the presentation of the liquidator (the DPC)'s interim report. Royal Bank was placed under provisional liquidation on February 20, 2014 after it surrendered its operating licence to the Reserve Bank of Zimbabwe (RBZ) mid-2012 after it failed to secure new investment.

DPC chief executive officer John Chikura made the announcement in a statement today: "The purpose of the meeting is submission of claims by creditors and presentation of the Liquidator's interim report...On 28 January 2015, you in person or a duly appointed representative of your organisation should then appear in person before the Master of the High Court in order to prove your claim.

"If you, or your representative are not in attendance on the day of the meeting, your claim will be rejected for non-appearance," said Chikura.

Prior to surrendering its licence Royal, which was reissued with a licence in 2010, had a capital base of $1,9 million against the requisite $12,5 million for commercial banks at the time.

Prior to the closure of the bank, the RBZ had approved acquisition of a 62 percent stake in the bank by Commercial Bank of Africa (CBA) based in Kenya, but the parties had to finalise implementation of the deal within given timeframes.

"The transfer of funds from CBA did not materialise and there were conflicting statements from the bank and CBA on when the deal would be consummated," said then RBZ governor Dr Gideon Gono while announcing the closure of the bank in July 2012.

The RBZ has since raised the minimum capital requirements for commercial banks to $100 million by year 2020. The January 28 meeting of creditors will come just two days ahead of a public auction of the bank's land assets of 34 properties as the DPC tries to recover depositors' funds trapped in the bank.

The properties includes 23 residential properties, two vacant stands and nine commercial properties.

Hammer and Tongues Real Estate will conduct the auction in Harare on January 30. "Duly instructed by the Depositor Protection Corporation, liquidators of Royal Bank Zimbabwe Limited, we shall sell the following properties by auction," Hammer and Tongues said in a statement last week.

In line with previous statements by the DPC, the corporation is expected to compensate Royal Bank depositors a maximum of $500 each following the liquidation of the bank.