Tetrad judicial manager hits back at directors

Tetrad judicial manager hits back at directors

By Chipo Musoko, HARARE, April 21(The Source) – The provisional judicial manager of the troubled Tetrad Bank on Tuesday hit back at Tetrad Holdings Limited (THL) accusing management of failing to explain some financial transactions.

The board of Tetrad Holdings on Monday issued a long statement challenging the call by the provisional judicial manager, Winsley Militala to liquidate the bank and accused him of refusing to meet with the potential investor.

Last month creditors of the bank which was suspended by the central bank from undertaking banking activities due to insolvency gave shareholders one month to produce the potential Russian investor, Sergey Pokusaev who in partnership with government and other local investors form  Horizon Capital Consortium, failure of which they would liquidate the bank.

Militala said Tetrad Holdings Limited was not a shareholder in the bank and had no right to either attend a creditors’ meeting scheduled for Wednesday or issue a statement on behalf of owners and creditors.

“The statement is misleading and does not represent the sentiments of all shareholders of Tetrad Holdings but just a few misguided individuals who feel my report is damaging their reputation and their careers,” he said in a statement.

Militala said the press statement by THL sought to “derail the creditors meeting in light of the contents of these reports. It is an attempt to detract from the main issue at hand, which is the production of the Russian investor in person.”

He claimed that the statement was an attempt to divert attention from some questionable transactions needing further investigations.

“For example, in the course of securing the assets of the bank, certain financial transactions taking place within the institution at one of its branches could not be explained by some members of management,” he said.

He said a police report had been made and that investigations were ongoing.

Contrary to claims by THL shareholders that he had failed on three occasions to meet with the potential investor, Militala said he had not seen, met or talked with the Russian investor.

“The main issue however, remains that of the presentation of the Russian component of HCC in person along with their detailed plans for the future recapitalization of the Bank,” he said.

Last year, creditors voted for a moratorium to protect the bank’s assets pending finalization of a reported $200 million rescue deal by HCC but to date the deal has not been consummated while shareholders have sought to buy more time.

Militala said last week he was made aware of another possible investor from Panama sourced by some directors of THL and that creditors would have to debate the issue.