Van Rooyen questions Trustco bank’s suspension, bashes !Gawaxab
Trustco Group founder Quinton van Rooyen launched into a scathing tirade over the conduct of central bank governor Johannes !Gawaxab, calling him the worst governor in the history of the Bank of Namiba (BoN).
This follows a BoN decision to temporarily suspend Trustco Bank’s licence.
The apex bank last Friday announced the suspension of the licence, citing non-compliance on the part of the commercial bank.
Reacting to the suspension, Van Rooyen took aim at !Gawaxab’s tenure, saying he had a concerning reputation.
“It is noteworthy that Johannes !Gawaxab of BoN carries a concerning reputation, evident in his D+ grade in the Global Finance Central Banker's report, the worst of any post-independence central bank governor,” Van Rooyen said.
Bad management
The Trustco boss further cited examples of what he felt was bad management of entities at the hands of !Gawaxab, such as the Social Security Commission where N$11 million was paid dubiously from its development fund to the children of the liberation struggle, and Air Namibia, which has since undergone liquidation.
“His record with previous Namibian institutions - including EOS Capital, Air Namibia and the Social Security Commission - has raised questions about his stewardship. In a realm governed by integrity and accountability, such a record warrants thorough scrutiny,” Van Rooyen said.
He also questioned why commercial banks formed after independence have failed.
“Against the backdrop of the Namibian banking landscape, where post-independence banking entities like E-Bank, City Savings, Investment Bank, Swabou Bank and SME Bank vanished into obscurity, it is imperative to acknowledge that pre-independence banks are thriving. The poignant fact that no post-independence Namibian-owned bank has survived remains a matter of deep contemplation,” he said.
The central bank has previously filed an application to liquidate the Trustco Bank.
“Some of the shortcomings identified over this period and not satisfactorily resolved by [the Trustco Bank] and its shareholders include severe flaws in the bank's risk management practices and systems, its failure to maintain liquidity within the prescribed ratios and a failure to comply with agreed-upon directives to re-capitalise the institution,” BoN previously said in court papers.
This follows a BoN decision to temporarily suspend Trustco Bank’s licence.
The apex bank last Friday announced the suspension of the licence, citing non-compliance on the part of the commercial bank.
Reacting to the suspension, Van Rooyen took aim at !Gawaxab’s tenure, saying he had a concerning reputation.
“It is noteworthy that Johannes !Gawaxab of BoN carries a concerning reputation, evident in his D+ grade in the Global Finance Central Banker's report, the worst of any post-independence central bank governor,” Van Rooyen said.
Bad management
The Trustco boss further cited examples of what he felt was bad management of entities at the hands of !Gawaxab, such as the Social Security Commission where N$11 million was paid dubiously from its development fund to the children of the liberation struggle, and Air Namibia, which has since undergone liquidation.
“His record with previous Namibian institutions - including EOS Capital, Air Namibia and the Social Security Commission - has raised questions about his stewardship. In a realm governed by integrity and accountability, such a record warrants thorough scrutiny,” Van Rooyen said.
He also questioned why commercial banks formed after independence have failed.
“Against the backdrop of the Namibian banking landscape, where post-independence banking entities like E-Bank, City Savings, Investment Bank, Swabou Bank and SME Bank vanished into obscurity, it is imperative to acknowledge that pre-independence banks are thriving. The poignant fact that no post-independence Namibian-owned bank has survived remains a matter of deep contemplation,” he said.
The central bank has previously filed an application to liquidate the Trustco Bank.
“Some of the shortcomings identified over this period and not satisfactorily resolved by [the Trustco Bank] and its shareholders include severe flaws in the bank's risk management practices and systems, its failure to maintain liquidity within the prescribed ratios and a failure to comply with agreed-upon directives to re-capitalise the institution,” BoN previously said in court papers.
Comments
Namibian Sun
No comments have been left on this article