CHAOS erupted at some banks in Bulawayo yesterday as the liquidity crunch continues to suffocate mostly indigenous banks in the festive season rush.
GAMMA MUDARIKIRI OWN CORRESPONDENT
With just over a week before Christmas, hoards of clients besieged Allied Bank, Met Bank and the People’s Own Savings Bank (POSB) desperate to withdraw their money, but were disappointed as the institutions had run dry.
The situation reached boiling point in some instances exposing staff to threats and offensive behaviour.
There was a stampede at Met Bank as depositors fought to get their money. The angry depositors were pushing and shoving to gain entry into the bank and in the process broke a glass screen.
“We want our money. We have been in the queue for a long time and people are now impatient.
“A window has been broken as people were pushing each other to gain entry,” said one angry depositor who preferred to remain anonymous.
The three banks resorted to limiting cash withdrawals to a maximum of $200 per person, but this did not go down well with customers who became hostile.
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“We are only allowed to withdraw a maximum of $200 and I have been in the queue for two hours trying to get that amount,” said one disgruntled Allied Bank client Last Moyo.
Allied Bank has been facing cash shortages for months with depositors having to struggle to get their money, especially during month ends.
POSB branches had long winding queues with some clients saying they had been waiting to get money for more than four hours.
“I have been in the queue from 8am. It’s almost midday now and I am still not sure if I will get money today,” said a depositor, Emar Tshuma.
“I’m from Tsholotsho and I have to go back to my rural home today. I am no longer sure if that will be still possible,” she added.
The financial sector is battling with a financial squeeze and experts say the problem will worsen as banks have to import cash at a high cost which most indigenous banks cannot afford.
However, some banking experts said the cash shortage was temporary and was due to high demand during the festive season.
“When a bank runs out of cash, it may be a temporary situation brought about by the complexities of moving cash around and the high seasonal demand at this time of the year,” said one banking expert.
“However, it could also be a symptom of a more fundamental liquidity or viability problem within that bank,” the expert said.
In Harare, rowdy Allied Bank depositors assaulted workers at the Third Street Branch and vandalised property after they failed to withdraw their money, a sign of deepening cash shortages in the country.
Onlookers alleged that a group of soldiers who had been queueing to withdraw their salaries attacked the bank staff after failing to get the money and were joined by other depositors in the assault.
A security guard reportedly threw a teargas canister at the rowdy customers inside the bank which had closed doors to control the crowd, resulting in some breaking the glass doors to flee.
The bank’s chief executive officer Stephen Gwasira apologised for the chaos and assured clients that the liquidity constraints were being addressed.
“We sincerely apologise for the inconvenience emanating from the prevailing cash shortages and assure valued customers that the bank is making aggressive efforts to address the liquidity constraints,” he said.
“We are confident that these efforts will yield positive results.”
Met Bank director Ozias Bvute dismissed reports that the bank had sought the intervention of police after problems erupted at one of its Harare branches over cash shortages. Asked if there had been any arrests in connection with the violence at banks, Harare provincial police spokesperson Inspector Tadius Chibanda referred questions to police spokesperson Superintendent Andrew Phiri, who was not picking up calls.
Zimbabwe Allied Banking Group (ZABG) was rebranded Allied Bank Limited last year after an investment vehicle owned by Transport minister Obert Mpofu injected $23 million into the bank.
The attack on Allied Bank personnel follows a similar incident at Metropolitan Bank’s Mutare branch, which required police intervention to rescue workers. — Additional reporting by NewsDay/ The Source
