Chanakira’s KBAL insolvent, temporary manager’s report shows

Chanakira’s KBAL insolvent,  temporary manager’s report shows

By Bernard Mpofu, HARARE, March 13 (The Source) –Nigel Chanakira’s Kingdom Bank Africa Limited is technically insolvent, with liabilities of $19 million against assets worth $5,2 million, a report by the bank’s temporary manager has shown.

The Bank of Botswana last month put KBAL under temporary management for a period of three months to allow for investigations into the state of the financial institution.

Out of the liabilities, $18 million were depositors funds, according to a statement dated March 4 issued by the temporary manager, Jennifer Marinelli on the BoB website.

KBAL remained as Chanakira’s sole foothold in the financial sector after Mauritian firm, AfrAsia Bank Holdings bought him out of Kingdom Financial Holdings, which it rebranded AfrAsia Zimbabwe.

AfrAsia last month pulled out of Zimbabwe, leading to the local bank surrendering its operating licence and placing the its two subsidiaries, microfinance firm MicroKing, and asset manager AfrAsia Capital Management (ACM) under a cloud.

The Bank of Botswana put KBAL under temporary management on February 16, just before AfrAsia announced its withdrawal from Zimbabwe, although the Reserve Bank of Zimbabwe issued the notice on Friday.