Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

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CrimsonAvenger
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Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by CrimsonAvenger »

https://www.theindependent.co.zw/2018/0 ... -zc-funds/
ZIMBABWE Cricket (ZC) has received a reprieve for its US$19 million debt after the Zimbabwe Asset Management Company (Zamco) agreed to service the non-performing loan at lower interest rates, although question marks remain over the long-contentious funds.

Zamco was established four years ago by the Reserve Bank of Zimbabwe (RBZ) to acquire, manage and restructure bad loans.

The Zimbabwe Independent can exclusively report this week that Zamco will pay off four banks owed by ZC — Metbank, CBZ, Ecobank and NMB — with the cricket governing body set to transfer its loan repayment responsibility to Zamco at an interest rate of 6,5%, down from some 10%.

The total amount of the debt taken over by Zamco amounts to slightly over US$15 million, although ZC’s overall loan is fixed at around US$19 million, including money owed to the International Cricket Council (ICC).

A 2018 ZC budget planner leaked to us shows that Metbank initially declined entering the Zamco deal due to disagreement over discounted rates with the national special purpose vehicle — initially established by government in 2014 as “part of holistic measures to deal with the problem of rising non-performing loans (NPLs) in the banking sector.”

Metbank had demanded to be paid off the full amount of nearly US$5 million at no discount, which was later agreed upon, paving way for the Zamco arrangement to sail through.

“ZC is pleased to inform the board that Zamco has successfully absorbed the loans from Ecobank, CBZ and NMB with the exception of Metbank,” reads the document.

“Metbank has advised ZC that they are willing to take over their loan balance to Zamco if ZC would pay off the discount; if the board approves ZC to pay off the discount the effect is that ZC loan balances will increase +/-700k. Unfortunately the discussions with ZC failed.”

Meanwhile, the document reveals that ZC repaid the ICC US$2,2 million in January this year as part of its loan payment plan, despite well-placed sources disclosing to Independent that players were told during a meeting with management last week that US$3 million had in fact been settled with the world cricket body in July 2014 as part of holistic measures to deal with problem of rising NPLs in the banking sector

The meeting with players, addressed by ZC chairman Tavengwa Mukuhlani in the presence of senior staffer Givemore Makoni, was held at Takashinga Cricket Club last week in reaction to the prospect of a strike by players — who are owed salaries, allowances, match fees and bonuses.

The players have threatened to boycott the home tri-series with Australia and Pakistan in July if they are not paid.

“The financial situation is a mess right now,” said the source. “Conflicting statements are being given to people, and the players are very, very worried.”

A few more eyebrows were raised when players were told that ZC had been paying US$3 million each year to service its bank loans, in finance costs alone, at an interest rate of roughly 10%.

ZC, it was said, had been forced to go the Zamco route because it was in deep financial trouble and struggling to service the loan principal — which has remained stagnant for years.

Meanwhile, in another twist to the controversy surrounding Zimbabwean cricket funds, a suspicious-looking loan of US$2,4 million, said to be owed to Metbank over and above the original agreed debt, was discovered and noted in an audited report also seen by this paper.

“There is a contingent of US$2 400 000 being the amount claimed by a bank as due to them over and above the amount reflected in these financial statements. ZC has not assumed this amount due to insufficient evidence and consultations are being carried out with the bank,” notes the audit report.

Curiously, a top source at Metbank told the Independent that during the same period, a top-ranking official within ZC (name given) had individually applied with the bank for a loan of exactly the same amount, to finance his private business interests.

The loan was not approved.

“Could this have been a coincidence? One can never know,” remarked the source.

We were unable to establish how ZC will guarantee the payment scheme with Zamco at the time of writing.

Calls have grown louder for the institution of a forensic audit to establish how ZC accumulated such debts, when standards in the game have gone down drastically for a decade and half now — with players and staff regularly going unpaid for several months.

TapsC
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by TapsC »

ZAMCO.. using tax payers money to service corrupt officials debts. It will bring relief for sure and they will save millions but in a fully functional system an independent audit would need to be done first because a lot of people then add personal loans to the equation hidden as company costs.

Jemisi
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by Jemisi »

SMH

jimmylesaint
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by jimmylesaint »

If ZAMCO is used then criminal and civil cases must ensue...

zimstarr
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by zimstarr »

Guys help me out if ZAMCO has absorbed ZC debt does it mean ZC has no debt now or they now owe ZAMCO at lower interest rates

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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by jaybro »

zimstarr wrote:
Fri May 25, 2018 10:02 am
Guys help me out if ZAMCO has absorbed ZC debt does it mean ZC has no debt now or they now owe ZAMCO at lower interest rates
Answer B is correct
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Googly
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by Googly »

It’s like a factoring service, but with a loss for ZAMCO instead of the profit.
I smell a giant rat here, yet another one!!
Firstly ZAMCO have acknowledged the “legitimacy” of the “loans,” which in itself is a con because a proper forensic audit I’m sure would unearth some serious irregularities.
The difference between their interest rate and the original one is being paid by whom exactly? The government can’t pay their monthly commitments as it is.
The borrowers and lenders are now off the hook entirely and there’s no incentive to delve any further into this theft. As usual there’s something very underhanded about this and someone is profiting.

TapsC
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by TapsC »

This to me is daylight robbery.

For example. Mangongo took a loan and he said ZC was the guarantor. This has probably been happening for years. So for example Bvute could have taken a loan to buy a house years ago and ZC would have been the guarantor. If he failed to pay that means the debt then became ZCs problem. All of these kind of loans would have been pushed into this ZAMCO deal. So basically all the housing and car loans will be paid for by us the taxpayers because ZAMCO doesnt make any money if they are absorbing debts with higher interests than they are getting back. Biggest fraud in history. Cant believe they are going to get away with this. Very depressing

Googly
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Re: Enock Muchinjo's article 2: The ZC funds situation and entry of Zamco

Post by Googly »

Being on that ZAMCO board will be more profitable than being the ZC President. Any organization in deep Dudu for theft, mismanagement and embezzlement just had to palm it off on Zimasco. Obviously there’s a huge “fee” for legitimising the gross irregularities that got these organizations in the shit in the first place. There are no consequences for anyone except the taxpayer, everyone gets off the hook and carries on as before. There is absolutely no hope for our country. The Zamco boys will make sure the original lenders are paid on time and get some huge kick backs, they will be allowed a few years to fuck the system before someone gets jealous of the fancy houses and they launch yet another fruitless investigation into what’s been happening. We are a nation of thieves.

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