Kingdom Bank to Be Liquidated

| May 21, 2015

Kingdom Bank Africa (KBAL) is to be liquidated as its liabilities exceeded its assets by US$17 million or nearly P170 million, proving insolvent.

A press release from Bank of Botswana stated that the bank was placed under temporary management, which came to an end on May 18 this year and during this time the managers found that the asset base of the bank had been severely eroded due to a number of factors which gave rise to liquidity problems and ultimately insolvency.

The release also states that KBAL had placed significant funds, at least 70 per cent of its total assets, on deposit with a related bank in Zimbabwe, Afrasia Bank Zimbabwe Limited.

Afrasia Bank also suffered liquidity problems and in February this year it surrendered its banking licence and was subsequently placed on provisional liquidation.

These problems have negatively impacted on KBAL, the recoverability of its funds on deposit, its ability to continue as a going concern and its ability to meet its obligations to its depositors.

Bank of Botswana says it commissioned a forensic audit of the financial affairs of KBAL focusing mainly on some investments and placements at foreign financial institutions and it is yet to be concluded.

The High Court has granted a final winding-up and appointed Gaborone based Chartered Accountants, Mr Max Marinelli and Mr Chris Bray to act as joint liquidators.

Source : BoB

Source : Botswana Daily News

Category: Business & Finance

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