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Property belonging to failed bank, Afrasia Bank Limited goes under the hammer this week as the bank’s liquidator, the Deposit Protection Corporation (DPC) seeks to raise more funds to compensate the institution’s former depositors. Afrasia voluntarily surrendered its banking licence which was subsequently cancelled in February after failing to mobilise funding to meet Reserve Bank of Zimbabwe’s minimum capital threshold of $25 million.

To date, the DPC has paid out over $1 million out of an insured amount of about $3.4 million to the over 6,000 Afrasia depositors. Founded as Kingdom Bank by banker Nigel Chanakira, Afrasia had over the years grown to become one of the country’s top indigenously owned banks before its takeover by Afrasia, a Mauritius based banking group.

At its closure, Afrasia had a core capital of around $6 million against a requirement of $25 million. Only its micro-finance unit, MicroKing which managed to secure new investors who have injected new capital into its operations, remains operational. In a joint statement, the DPC and auctioneer, Hammer and Tongues said a wide range of property would be publicly auctioned on October 23.

Property that will go under the hammer includes 14 vehicles and office furniture.The DPC, an autonomous institution put in place by government to ensure that bank depositors are not prejudiced after collapse of any financial institution, pays out an initial minimum of $500 per depositor in case of bank closure.

Those with deposits amounting to more than $500 are if possible, paid out after the liquidation process has been completed. The DPC early this month had property belonging to another failed financial institution, Allied Bank auctioned. — New Ziana