SME Bank liquidators rapped for using N$100m to recover N$130m

Political parties have demanded that liquidators disclose how they spent N$100 million to recover N$130 million siphoned from the SME Bank.

This comes after liquidators Ian McLaren and David Bruni revealed on Tuesday that they recovered N$130 million, but spent N$100 million of it to trace the funds through forensic investigations and lawyers.

In total, about N$257 million is suspected to have been lost through an internally orchestrated heist at the bank.

The heist mastermind is controversial Zimbabwean businessman Enock Kamushinda, who is now needed to answer criminal charges for fleecing depositors’ money.

According to the liquidators, 23 000 depositors from the bank will share N$30 million at a rate of 15 cents for every dollar deposited with the ill-fated bank.

Swapo Party Youth League (SPYL) secretary and member of parliament Ephraim Nekongo said the discrepancy between the N$130 million recovered by the SME Bank liquidators and the N$30 million being split among depositors raises serious concerns about the fairness and transparency of the liquidation process.

“Deposit holders, who have entrusted their hard-earned money to the bank, deserve a full and comprehensive report detailing how the N$100 million difference was utilised for the recovery efforts,” he said.

Nekongo said it is imperative that the liquidators provide a detailed breakdown of how the funds were spent.

“This breakdown should include specific information on the expenses incurred, such as legal fees, investigative costs, operational expenses and any other relevant expenditure related to the recovery process,” he said.

Nekongo noted that by releasing a comprehensive breakdown of how the N$100 million was used, the liquidators can demonstrate transparency, accountability and diligence in their management of the recovered funds.

He said transparency is crucial, not only for rebuilding trust with depositors but also for ensuring that the liquidation process is conducted in a fair and ethical manner.

Nekongo argued that the depositors have a right to know how their funds are being managed and distributed, especially in cases where significant amounts of money are involved.

“Providing a detailed account of the use of the recovered funds will help depositors gain a clear understanding of the situation and enable them to assess the fairness of the distribution process,” he said.

Popular Democratic Movement (PDM) lawmaker Maximalliant Katjimune said the liquidators should account to the public how the N$100 million was disbursed.

“Ordinary and hard-working people lost their investments through the looting of SME Bank, so there must be full transparency and accountability,” he said.

Katjimune called for the prosecutor general to finalise the investigation into the looting of the SME Bank so that arrests can follow and people are held accountable.

“We cannot allow this story of people who stole from the SME Bank to die a natural death. There must be arrests made,” he said.

Namibia Economic Freedom Fighters (NEFF) deputy president Longinus Iipumbu said the liquidators should release a detailed breakdown of how the N$100 million was used to recover the N$130 million lost to theft at the SME Bank.

“Transparency is crucial in such situations to ensure accountability and maintain public trust. A clear breakdown would help stakeholders, including depositors, understand the costs involved and assess whether the expenses were justified,” he said.

According to Iipumbu, this sets a precedent for responsible financial management and can potentially deter future mismanagement or embezzlement.