Depositors to forfeit unclaimed funds: DPC

Depositors to forfeit unclaimed funds: DPC

- in Loss Control, Marine

BY Oliver Kazunga

DEPOSITORS of the now-defunct Genesis Investment Bank would forfeit their funds if they fail to claim them before June 30, 2017, the Deposit Protection Corporation (DPC) has warned.

In the past few years, the country experienced a number of bank failures prompting the Government to set up DPC with the view of protecting depositors against loss of their insured
deposits placed with member institutions licensed to operate banking or finance business.

DPC chief executive officer Mr John Chikura  urged depositors of the liquidated investment bank who have not yet lodged their deposit insurance claims to Òle their claim forms before the set deadline.

DPC commenced compensating insured deposits on July 12, 2012 and is still holding an estimated $3 million unclaimed funds. Significant funding remains unclaimed despite eⰘorts by DPC to reach out to the aⰘected depositors.

“If a claim is not made within the prescribed period, the unclaimed protected deposit shall be forfeited in terms of section 38(6) of the DPC Act (Chapter 24:29), and all the rights thereto shall revert to the corporation. Depositors of Genesis Investment Bank who have not yet lodged their deposit insurance claims are thus advised to file their claim forms to the DPC by June 30, 2017,” he said.

Genesis was placed under provisional liquidation on July 4, 2012 and subsequently placed into final liquidation on August 8, 2012.

The institution was closed by the Reserve Bank of Zimbabwe after its board voluntarily surrendered its banking licence for failing to steer the institution out of numerous deÒciencies including gross undercapitalisation, poor asset quality, paltry deposit base and persistent losses.

Mr Chikura said payments to depositors of failed contributory institutions take place on two fronts namely the Deposit Protection Fund up to a  specified cover level, and the liquidation
dividends on a pro-rata basis subject to recoveries and assets realisation.

“Regarding the Deposit Protection Fund, section 38(5) (b) of the DPC Act (Chapter 24:29) limits the period within which a depositor must claim the amount of his or her protected deposit from the corporation.

“A depositor has up to 90 days from the date the corporation gave written notice to the depositor of the appointment of the corporation as the liquidator of the failed contributory
institution, by mailing a copy of the notice to the depositor’s last known address appearing on the records of the failed contributory institution; or 36 months from date of DPC’s appointment as liquidator of a failed contributory institution, whichever is the later date,” said Mr Chikura.

AfrAsia Kingdom, Tetrad Investment Bank, and Royal Bank are some of the failed financial institutions liquidated over the years owing to poor corporate governance, poor asset base and paltry deposit base. – The Chronicle

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