Zimbabwe independent last week reportee that controversial Zimbabwe Billionaire, Kuda Tagwirei has fired six CBZ executives since the beginning of January. All six did not get their 5 years contracts renewed.
This as Kuda Tagwirei took complete control of the biggest bank in Zimbabwe by assets through Akribos Capital in a disguised Takeover.
More changes are expected as more people are set to be removed, following the retrenchment of 80 employees in 2019.
Tagwirei is also expected to fire the existing board and appoint a new one. This means Tagwirei is looking to take charge of both the governance and strategy at the bank. A new board chairman, Marc Holtzman, was appointed in September 2019.
A new strategic plan will be rolled out this month, February 2020 and it’s implementation will be spearheaded by CEO, Blessing Mudavanhu.
Why is CBZ Significant
- There is a strong link between government and CBZ.
- Most Government Officials bank at CBZ, for example Mugabe, Mary Chiwenga etc
- The past 2 reserve Bank governors have came from the CBZ
- The bank is the biggest in terms of assets ( Over 1 Billion)
In the June 2019 financial statements: CBZ Says
34. RELATED PARTIES
The Group does not have an ultimate parent as it is owned by several shareholders none of which has a controlling interest.The Group has related party relationships with its Directors and key management employees, their companies and close family members.
The Group carries out banking and investment related transactions with various companies related to its shareholders, all of which were undertaken at arm’s length and in compliance with the relevant Banking Regulations
The June 2019 Financial statements show CBZ is heavily exposed to the Agriculture, Mining and Manufacturing sectors.
The Takeover of CBZ by Kuda Tagwirei is one of the most significant transactions in Zimbabwe as he is a politically connected person.
There is a potential of the bank being stripped of its assets by politicians.
There is also a possibility of the bank being used for illegal activities.
Finally, the transaction itself could be questionable if Tagwirei owns more than the threshold allowed for one person by the Zimbabwe laws.