#MondayBlues: CBZ Top Executives Jump Ship, Amidst US$385m fine

Last Week #MondayBlues exclusively broke news that CBZ group marketing Eldrette Shereni was serving her last week at the country’s largest commercial bank while she takes on a new post as the new NetOne Marketing Executive, as some analysists questioned the rational, few days after that, the nation was hit with news of the CEO “retiring”.

The CBZ Holdings Limited Board of Directors last week announced that Never Nyemudzo will be retiring from the Group as their Chief Executive Officer with effect from 31 December 2017.

Then the Former CBZ chairman Elliot Mugamu was also reportedly forced out following pressure from National Social Security Authority (Nssa) over allegations surrounding corporate governance, dividend and remuneration packages issues for executives.

While loads of reports speculated mass corruption, underhand deals and  corruption involving the top executive, it turned out the real issue biting the commercial bank was the US$3,8 billion fine by the United States Treasury’s Office of Foreign Assets Control (Ofac) for loads of  financial transactions done on behalf of ZB Bank, which was still under sanctions.

According to the Zim Independent, CBZ is reported to have perpetrated 15 127 violations of US sanctions on Zimbabwe.

“Accordingly, the base penalty for the apparent violations equals the applicable schedule amount for each apparent violation, capped at US$250 000 per apparent violation, which in this case totals US$3 856 505 460,” Ofac deputy director Andrea Gacki wrote in March.

CBZ is the largest bank in the country by deposits and assets. According to an internal presentation made during the release of the group’s half-year results in August, CBZ, which processed US$14 billion in transactions in the first six months of the year, accounted for 35% of the value of national transactions. The bank, which boasts of 408 000 active accounts, has assets worth US$2,2 billion, representing 14% of gross domestic product

It seems the executives are now taking cover as explosions erupt at the commercial bank with fears that their customers may also panic amid the revelations.

While the CEO insisted that it was normal retirement, its very ironic for a man in his 40s to quickly draw out the retirement card, as he still has loads of life and energy ahead of him.

Signs are already showing that they could be more behind the mass dissertation, or maybe the giant bank has simply reached its optimum, now heading nowhere but south!

CBZ majority shareholders as at March 2017 included CBZ Holdings Limited 24,59%, Government of Zimbabwe 16,01%, Libyan Foreign Bank 14,06% and Nssa 11,71%.

#MondayBlues: Mugabe Must Now Join Twitter.

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