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John Chikura

Golden Sibanda Harare Bureau
THE Deposit Protection Corporation will institute a forensic audit into the operations of Tetrad Investment Bank to determine circumstances that led to collapse of the bank.

DPC chief executive John Chikura confirmed in an interview that a probe into Tetrad was in the offing, but a meeting would first have to be held with creditors of the bank.

He said that the DPC was in the middle of a handover-takeover process for Tetrad after the central bank appointed it judicial manager of the failed investment bank.

A meeting with creditors is expected to be held by August 6 and will then guide action to be taken in respect of all issues pertaining to the bank.

The takeover at Tetrad by the DPC could be a step towards potential liquidation, but Chikura did not rule out resuscitation if an investor interested in the bank is found.

However, he said a forensic audit into the operations of the bank was critical to help give its creditors insight into what transpired and eventually caused its demise.

This follows a meeting of creditors held last month that proposed and passed the resolution that a forensic audit be done to give answers regarding the bank’s collapse.

Tetrad had been negotiating with Horizon Capital Consortium and AAY Investment to inject fresh capital and try to rescue the troubled bank from going extinct.

Creditors want to know how their money was lost, where it went, who caused the loss, securities claimed for debts and if directors can be charged for negligence.

“To answer all these questions it is essential that a competent forensic audit be conducted and completed soon,” said a statement issued by the Tetrad Creditors Group.

“We hope to assist DPC to achieve that goal and they have already started on the job. Only when we all have a more reliable overall picture can we decide what to do next.”

The initiative is part of efforts to help those in charge of the judicial management or liquidation to recover as much as they can for the creditors in the shortest period.

TCG is seeking information to assist recoveries in general and of particular amounts and support from people prepared to give time to following up on reports.

This includes ideas on how to achieve the objectives; commitment to work of a Trust and cash payments to recover what is owed following the bank’s collapse.

The Trust was proposed as a vehicle through which legal action can be exerted and constitutes a formal entity to open a bank account to hold financial contributions.

Tetrad was placed under judicial management after it failed to get fresh capital injection by April 2, 2015 and appears to be headed for liquidation than potential rescue.