Zimbabwe's errant bankers must be punished

Vocal Harare political activist and business advocate, Engineer Jacob Mutisi, has called for stringent accountability for bankers and financial institutions involved in the mismanagement and fraudulent activities that have led to the loss of funds by depositors. Mutisi, who has suffered significant financial prejudice and losses due to the collapse of banks in Zimbabwe, argues that these bankers must be held responsible to prevent a culture of impunity.

In an interview with The NewsHawks last night, Mutisi expressed his frustration with the banking sector, particularly the way in which some banks have collapsed due to the mismanagement, theft, and fraud committed by shareholders, directors, and managers. He highlighted that many Zimbabwean banks have failed due to poor corporate governance, corruption, and the failure of executives to act in the best interest of depositors.

"Bankers and financial institutions have a serious fiduciary duty to protect depositors' funds," Mutisi said. "Unfortunately, many banks went under because their shareholders, directors, and managers failed to run them properly, often engaging in fraudulent activities, including embezzlement and misappropriation of funds."

Mutisi emphasized the importance of trust in the banking sector, noting that depositors entrust their funds to financial institutions with the expectation of security. When bankers breach this trust through theft or mismanagement, it undermines public confidence and has far-reaching consequences for the economy.

"Banking is about trust, confidence, and confidentiality," he added. "When bankers betray this trust, depositors suffer massive financial losses, which can result in the loss of savings, homes, or businesses."

The activist pointed to Zimbabwe's troubled banking history, citing the collapse of major banks such as United Merchant Bank, Royal Bank, AfrAsia Bank Zimbabwe, Barbican, Interfin, Trust Bank, Allied Bank, Century, Renaissance, and Capital Bank. According to Mutisi, no one has been held accountable for the mismanagement and fraudulent activities that caused these banks to fail, despite the devastating impact on depositors.

"These bankers who caused these failures are walking free," he said. "They live in luxury while the victims of their actions—ordinary Zimbabweans—are left to suffer. Some of the culprits even hold powerful positions in government, and that cannot be allowed in a responsible society."

Mutisi stressed that it is crucial for authorities to pursue criminal charges against those responsible for defrauding depositors and to ensure they face appropriate penalties. He also called for reforms to strengthen the regulatory framework and improve oversight to prevent further collapses in the banking sector.

"Whistleblowers must be protected and encouraged to expose bankers who mismanage funds," he said. "We need a system that promotes transparency and accountability, not one where financial results are manipulated to hide the truth."

Mutisi also advocated for reforms in the country's financial protection systems, calling on the Depositors Protection Corporation (DPC) to ensure that victims of banking fraud are compensated in a timely and fair manner.

"The collapse of Zimbabwe's banking sector and the lack of accountability for those who looted depositors' funds signal a failure of governance," Mutisi concluded. "We need urgent reforms to restore trust in the financial system and protect the rights of depositors. Without action, the cycle of corruption and impunity will continue, further crippling our financial landscape."

Mutisi's call for stronger regulation and accountability comes at a time when Zimbabwe's banking sector is still grappling with the aftermath of several high-profile collapses, leaving many depositors in limbo and raising concerns about the stability of the country's financial system.