KYLE Preparatory School in Masvingo is suing troubled AfrAsia Bank Limited (AfrAsia) over failure to complete a transfer of R59 733 and $3 881,61 to another bank following cash shortages that have hit the bank.
AfrAsia has limited depositors’ withdrawals due to solvency challenges and clients get intermittent daily withdrawal limits of $50.
According to correspondence sent to AfriAsia by Saratoga Makausi Law Chambers, the bank failed to execute a transfer of the said amount by Kyle Preparatory School to BancABC for more than two months.
The school has also threatened to issue summons and press formal fraud charges against AfrAsia.
Saratoga Makausi Law Chambers senior partner Rodrick Makausi said they would get a warrant of arrest for the bank if it failed to honour the funds transfer.
“On 7 and 8 October 2014, a ZETSS application was made for the transfer of R59 733 and $3 881,61 from AfrAsia to BancABC. AfrAsia undertook to transmit the said amount within 48 hours of having received the application. Despite the lapse of the 48 hours, the transaction has not yet materialised and the bank failed, refuses and or neglects to release this amount without reasonable or just cause,” Makausi said.
“Several meetings with the bank manager with a view to finding a solution to the matter yielded nothing. The bank manager indeed confirms that nothing has been done on the part of the bank to ensure that our client received the said amounts.”
AfrAsia, which recently rebranded from Kingdom Bank following a 62,5% share takeover by AfrAsia Bank Mauritius, is seeking to raise a $100 million minimum capital threshold for commercial banks as stipulated by the Reserve Bank of Zimbabwe’s capital requirements.