Bank of Namibia has just announced that it has taken control of SME Bank Ltd, due of certain investments made that have not conformed to sound investment principles and that can potentially pose a risk to the stability of the bank.
According to BoN, the SME Bank made dubious investments in South Africa between N$181-196 million.
During the announcement made this afternoon, BoN Governor Iipumbu Shiimi said the board of directors of SME Bank has been disempowered and must submit the property, business and affairs of the SME Bank to the control of the BoN with immediate effect.
Similarly, the Chief Executive Officer, Manager of Finance and General Manager of Treasury have been removed. The BoN has appointed an interim board to carry out the fiduciary responsibilities and support the committed staff members of SME Bank in managing the affairs of the bank on behalf of BoN.