Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) said on Tuesday it has extended the curatorship period for Lion Microfinance Limited by a further three months.
The money lender, placed under the curatorship of the Deposit Protection Corporation (DPC) on July 26 this year due to under-capitalisation and weak governance issues, is continuing with its recovery process.
The DPC then appointed Ngoni Kudenga of BDO Tax and Advisory Services as the agent to manage the curatorship process.
During a curatorship, the board and management of the firm are relieved of their control of the institution, with the curator or administrator taking over the full management functions for purposes of rehabilitating it.
Curatorships are generally triggered by concerns about the management or financial viability.
“Notice is hereby given that the curatorship of Lion Microfinance Limited has been extended by a further period of three months ending January 25, 2020,” the RBZ said.
“The Reserve Bank has similarly extended the appointment of the curator, the Deposit Protection Corporation accordingly.”
In September this year, the central bank allowed Lion Microfinance, which is a deposit taking microfinance institution (DTMFI), to partially re-open its doors to the public but only for lending purposes.
Unlike ordinary microfinance institutions, DTMFIs are a special breed, which are involved in both lending micro-loans and taking deposits from the public.
The DPC said then: “The curator is seized with full restoration of the DTMFI’s operations in the shortest possible time.”