Timba Looses Key Allies

Corporate lawyers Addington Chinake and Innocent Chagonda said they have resigned from Bethel Trust after the Reserve Bank of Zimbabwe (RBZ) accused the trust of fleecing ReNaissance Merchant Bank (RMB), a wholly owned subsidiary of RFHL.
A trustee is an individual or organisation which holds or manages and invests assets for the benefit of another. The trustee is legally obliged to make all trust-related decisions with the beneficiary’s interests in mind, and may be liable for damages in the event of not doing so.
An RBZ report accused Bethel Trust and RFHL founders Timba and Dunmore Kundishora of converting to their own use depositors’ funds.

“On several instances Mr. Timba, RFHL and Bethel Trust converted to their own use deposits negotiated and received by RMB as part of the bank’s money market operations,” RBZ said.

“The siphoning of depositors’ funds through related party loans to the main shareholders and their associates was akin to a declaration of dividends by shareholders from depositors’ funds.”

Chinake confirmed his resignation.

 “I attended a meeting at the Reserve Bank of Zimbabwe (RBZ) and as a result of what was discussed in that meeting, I took a personal decision to resign,” he said.
Chagonda said after they had been summoned to RBZ, he and Chinake agreed to resign from the trust.

“Chinake has already resigned and I have written to Timba to appoint new trustees before May 30,” he said.

The resignation of the trustees comes at a time the National Social Security Authority (NSSA) has already appointed an auditing firm to do a due diligence on RFHL so as to invest in the financial services group.
Two weeks ago Finance Minister Tendai Biti gave NSSA a cabinet approved proposal for the pension fund to invest in RFHL.