The Windhoek Master of the High Court has appointed provisional liquidators for the Small and Medium Enterprises (SME) Bank that was shut down Tuesday.
High Court judge Hannellie Prinsloo ordered that the SME Bank that is owned by the Namibian Government and Zimbabwean partners – Metbank and Enock Kamushinda – should be liquidated.
The move followed an application made by the Bank of Namibia that took over the SME Bank in February this year after failure by the management of the beleaguered bank to recover about 200 million Namibian dollars (14.7 million U.S. dollars) invested in South Africa.
In a press release issued Tuesday, the Bank of Namibia said that Master of the High Court shad appointed Windhoek-based Ian McLaren and David Bruni to wind up the affairs of the SME Bank until September 2017.
In her ruling Judge Prinsloo said the Bank of Namibia had presented a strong case against the SME Bank management, whose lawyer Sisa Namandje had argued that closing down the bank would leave more than 200 people jobless.
According to the ruling, the SME Bank and its minority shareholders were ordered to write to the court before Sept. 15 to show cause why a final order for the complete liquidation should not be made or granted. Enditem