[2008-09-05]  ABC awaits RBZ inspection

A TEAM from the Reserve Bank of Zimbabwe was this week expected to carry out an onsite inspection of African Banking Corporation Zimbabwe to check the bank's compliance with Exchange Control directives.ABC was in June accused of breaching two sections of the RBZ exchange control directives regarding the purchase of foreign currency.The bank was accused of flouting directive RJ 59 of 2 May 2008 which dealt with discrepancies between rate applied by the institution and the rates declared to the RBZ and Exchange Directive R.G 412 dated 21 October 2005 which deals with non declaration of foreign currency purchases.In a statement accompanying the bank’s half-year interim results, chairman Mr Norman Kudenga said while the bank took corrective action and was now in compliance with the requirements of the corrective order, it was awaiting the onsite inspection.“The board took necessary corrective action and is now in compliance with the requirements of the Corrective Order and of the Exchange Control Regulations S.I 109 of 1996, Exchange Control Directives and the Banking Act (chapter 24.20). The institution continues to work towards the upliftment of the Corrective Order by the Reserve Bank and awaits an onsite inspection that is due in the first week of September,” he said.On the performance of the bank, Mr Kudenga said ABC merchant bank achieved a historical net profit after tax of $186 quadrillion compared to $30 billion achieved at the same time last year.He said the growth was driven by strong interest income generation and revaluation of investment properties.Despite the harsh economic conditions, ABC Zimbabwe continued to contribute significantly to the performance of ABC Holdings that is headquartered in Botswana.The group also has a branch in Zambia. ABC Zimbabwe was among the subsidiaries that managed to surpass last year’s targets.


Source: Chronicle