Paul Nyakazeya
8 December 2011
RENAISSANCE Merchant Bank (RMB) Executive Director and deputy chairperson Norman Nyazema believes the handling of the bank’s issues was not being done in a manner that is expected to revive the institution.
In a supporting affidavit to the High Court submitted on November 29 in a case involving bank CEO Patterson Timba and curator Reggie Saruchera of Grant Thornton Camelsa, who were cited as the first respondents, Nyazema alleges that the real issue behind RMB’s woes is that Timba fell out of favour with the Reserve Bank governor Gideon Gono after the governor felt he bypassed him by briefing the Finance minister Tendai Biti on what was happening at the bank before the Reserve Bank intervened.
Gono is said to have been particularly irked by the fact that Timba was asking for money owed his bank by the RBZ to be paid to help his sinking bank. Apparently, Timba had written simultaneously to the RBZ and the Finance minister, but this did not go down well with the governor.
In his affidavit Nyazema alleges that he recalls in a meeting before September 23 this year where stakeholders in the RMB debacle had been invited to 88 Samora Machel Avenue’s 23rd floor, Gono clearly stated to Timba: “I want to show you that you can’t fight me and win, you are eight years younger than me, therefore I am your older brother, pachivanhu munin’ina haakunde mukoma (In our African culture younger brothers cannot overcome older brothers),” he said.
According to Nyazema’s affidavit, “the governor chaired the meeting and spent approximately 15 minutes castigating Patterson Fungayi Timba for having dared to brief the minister of Finance on the goings on at RMB. He appeared to have taken offence”.
“It became clear to me that that there was more to what was going on at RMB than meets the eye,” said Nyazema.
The meeting in question was held before the aborted Afre Corporation AGM and EGM that was scheduled for September 23. The meeting was attended by the RFHL board which included by invitation Timba, curator Reggie Saruchera, Addington Chinake of Kantor and Immerman, ReNaissance Financial Holdings’ legal counsel. The purpose of the meeting was to discuss, among other things, ReNaissance Financial Holdings’ strategy at the then upcoming AGM and EGM.
Nyazema said he specifically requested that Timba be invited to the meeting to explain his letter of intent.
“In the meeting Saruchera reported that he understood that Timba was scheduled to present evidence to the parliamentary committee on Budget, Finance and Investment Promotion on September 19 on what was going on at RMB,” Nyazema said in his affidavit.
“During the discussion he (Gono) advised that if Timba wanted a commercial solution/transaction, his only hope was to gain the support of a particular sector in government.”
Nyazema said the agreement was that Timba had to find a friendly investor who would take control with an agreement to sell back after three years.
He said on September 25 the RFHL board convened an emergency board meeting to discuss a letter of interest that had been received from Masawara, a Zimbabwean-controlled company listed on the AIM of the London Stock Exchange. He said the board resolved to set up a negotiating committee over the possible transaction. Timba was to represent the shareholders.
“The board tasked the chairman to write the curator and advice of these developments,” said Nyazema.
Gono was said to be out of the country when businessdigest contacted him for comment. In an interview last month Gono said he did not have anything personal against Timba and that the Reserve Bank was acting in a professional manner with regard to the RMB issue.
Commenting RBZ’s debt to RMB, Gono said: “PTA lines of credit and the PTA Bank officially extended the due date for the repayment of their facility at a time that Timba had left his bank so we forgive him for all his cries and lack of up-to-datedness”.
“He is personalising his difficulties and we are sure that Solomonic wisdom will prevail upon him soon along the lines that say — you do not have to wish every member of the clan to drown simply because your own straw has broken from pressures of the raging river. You rather ask for help,” Gono said.
In the case Timba has brought before the High Court, the Reserve Bank of Zimbabwe is cited as the second respondent, while the National Social Security Authority (NSSA) is the third respondent.
The fourth respondent is Renaissance Financial Services, while RMB is the fifth respondent.
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