Sunday, May 19, 2024

‘Liquidation of cooperative bank almost complete’ ÔÇô Minister

The liquidation process of the Botswana Cooperative Bank is nearly complete and the final account, which has been prepared, will be published for inspection by interested parties as provided for in the Cooperative Societies Act, it emerged in parliament on Friday.

Trade and Industry minister, Neo Moroka, told parliament the liquidation report was not coming mainly because of several factors.

“Initially the borrowers were given the option to pay reduced payments for early settlement of their loans but chose to pay their loans, some if which were long term loans of up to ten years, in accordance with the terms of their respective loan agreements,” Moroka revealed.

As a result of this arrangement, he said, a total of P47 734 327 out of a balance of 53 504 000 as at the date of the liquidation will have been repaid based on the calculations made as of December 31st 2007.

This represents 89 percent of the loan repayment, he said.

The Botswana Cooperative Bank was placed under liquidation in 1995 in accordance with the provisions of the Cooperative Societies Act. The government, which had given the Botswan Cooperative Bank loans from the Public Debt Service Fund (PDSF), was the only creditor.

“The liquidator had to negotiate the sale of all properties under the control of the bank, including their transfers to purchasers,” the minister added. “This process, which entailed proving affidavits and powers of attorney, turned out to be protracted as a result of which it went on until late 2003”.

The minister said that “the balance of investment call account with the local banks was inadvertently transferred into an unclaimed account in 2005 at the time the final liquidation report was being completed. Consequently, it became difficult to establish this account.”

After the investigations by the banks, the account was established together with the accumulated interest it had earned and the matter was finally resolved in April 2007. It is expected the liquidation process will be completed by the end of March 2008.
The minister was answering a question from Gaborone South MP, Akanyang Magama.


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