HARARE – MetBank says it has returned treasury bills worth US$20 million to the National Social Security Authority (NSSA) following a ruling of the High Court.
The bank reacted strongly after the publication of a story in The Herald claiming NSSA was on the verge of attaching its property over the debt from December 2017.
“It is false that Metbank has not repaid US$20 million in TBs as ruled by the High Court and it is equally false that a writ to attach property has been issued against the bank,” MetBank’s legal secretary Kiitu Zawanda said.
The treasury bills were flagged by a forensic audit report into NSSA, which cited them as part of US$95 million deals between NSSA and the bank which were risky.
Former public service, labour and social welfare minister Prisca Mupfumira was arrested on July 24 and accused of corruption, it is alleged for ordering NSSA to transact with MetBank against the advice of the pensions fund’s risk department.
MetBank denies any wrongdoing, and says it started doing business with NSSA as early as 2011.
“The facility held by MetBank was a performing asset and when it came to an end in December 2017, MetBank paid all the attendant fees and returned the TBs.
“It (facility) performed so well that as a result the facility was renewed on December 18, 2017, for a further six months through a term sheet which had a clause that it would be replaced by a subsequent agreement, which would govern the rights and obligations of the parties in respect of the TBs. The facility was extended on the basis of a further consideration which MetBank duly paid,” said Zawanda.
The bank said after the six-month period specified in the term sheet, a dispute arose over the release of the TBs, with MetBank refusing to return the TBs because NSSA had failed to avail the agreement which was meant to replace the term sheet as agreed between the parties.
The dispute was despite the fact that the facility was performing and MetBank had honoured all its obligations to NSSA, the bank maintains.
“Whilst the parties were still in negotiations regarding the dispute, NSSA went to court seeking the return of the TBs on the basis of the term sheet. MetBank opposed the relief sought on the grounds that the term sheet did not constitute an agreement, but was merely a precursor meant to precede a substantive agreement between the parties. For MetBank, the issue was that the TBs should only be released after an agreement had been entered into and only in terms of what that agreement would have provided for.”
The bank said it was made aware of Justice Nicholas Mathonsi’s determination on the matter on July 22, the same day as NSSA.
“Prior to receiving this judgment, MetBank of its own volition, wrote to NSSA on July 19 offering to transfer the TBs to them. NSSA indicated that they needed time to consult with their lawyers and after doing so, they finally accepted a full transfer of the TBs back to them on July 24, 2019,” said Zawanda.
