The summary of the document is: 1) The recovery of loans from the now defunct Allied Bank is facing challenges as many of the loans were transferred to third parties and a significant portion of facilities granted did not have security. 2) The delay in recovering loans will concern Allied Bank's creditors, including government departments. 3) The CEO of the Deposit Protection Corporation said disposal of assets and loan recovery has taken longer than expected due to external factors such as debts being transferred to third parties without security. Most facilities granted to debtors did not have security, impacting recovery rates.

1. By Tawanda Musarurwa
HARARE – The recovery of
the now redundant Allied
Bank’s outstanding loans
is hanging in the balance
amid revelations that the
debts were surrendered to
third parties, while a signif-
icant portion of the facilities
granted to debtors did not
have security.
The delay in the recovery
process will come as a con-
cern to the financial institu-
tion’s creditors, among them
a number of Government
departments.
Said Deposit Protection
Corporation (DPC) chief
executive officer Mr John
Chikura:“The disposal of
immovable assets and recov-
ery of outstanding loans has
taken longer than initially
anticipated. This is mainly
attributed to external factors
which include among others,
the debts that were ceded to
third parties,” he said.
News Update as @ 1530 hours, Monday 11 April 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Defunct Allied Bank’s unsecured loans delay recovery process
Mr John Chikura

2. 2 news
· Farms
· Mines
· Businesses
· More!
VISIT
www.ramafrica.com
OR CALL
+263 4 870 580
We won’t let you
down! Delivered in
72hrs, countrywide!
NEED
FUEL?
Blend, Diesel, Paraffin
Tel: 04 852517 / 870580
admin@ramafrica.com
“Most facilities granted to
debtors do not have secu-
rity and this has negatively
impacted on the rate of
recoveries.”
In addition, disposal of the
bank’s immovable assets
is presently on hold as the
matter is before the courts,
which might further hold-up
the institution’s liquidation.
“All immovable assets of the
bank consisting of land and
buildings with an original
book value of $16,7 million
are currently in dispute and
the matter is now in the
Courts,” said Mr Chikura.
Allied Bank is currently in
the process of final liquida-
tion after the Reserve Bank
of Zimbabwe cancelled its
operating licence in Janu-
ary last year saying it had
found the bank to be “grossly
undercapitalised and is fac-
ing chronic liquidity chal-
lenges.”
This was after a voluntary
surrender of the licence by
the bank during the same
month. Two creditors’ meet-
ings have so far been held,
the first one last year and
another one earlier this year.
The first meeting of Allied
Bank creditors was held on
June 24, 2015 and 93 claims
valued $9, 7 million were
provisionally accepted while
15 claims valued at $356
196,30 were rejected for
non-appearance.
During that first meeting, the
claims presented revealed
that Government ministries,
parastatals and municipali-
ties were among the bank’s
creditors.
And a second meeting of
creditors was held on Feb-
ruary 25, 2016 for consid-
eration of the Liquidator’s
Report and further proof of
claims, and claims worth
over $6 million were pro-
visionally accepted by the
Master of High Court.
Mr Chikura said as at the mid
of last month just over $800
000 had been recovered,
while another creditors meet-
ing is in the offing.
“As at 15 March 2016, about
$802 448 had been recovered
being $217 851 collected
from the various debtors;
$182 387 realised from
disposal of movable assets;
and $402 209 recovered
from Government stocks and
claims on the Reserve Bank
of Zimbabwe.
“We are likely to hold
another special meeting
of creditors to give those
creditors who missed the two
previous meetings, an oppor-
tunity to prove their claims.”
Allied Bank’s assets were
recorded at $25,8 million
while liabilities stood at
$34,4 million, when the High
Court approved its liquida-
tion in February 2015.●

3. BH24
TAA:DI251386-Y22
3

4. BH244

5. By Funny Hudzerema
HARARE -Zimbabwe’s largest
seed company, Seed-Co (Pvt)
Ltd has acquired new maize
breeding laboratory which
is expected to benefit the
country’s agricultural sector
through the breeding of smart
climatic responsive seeds.
Seed-Co has been doing its
seed sampling in South Africa
resulting in the company tak-
ing between 10 to 12 years to
come up with a new seed vari-
ety, but with the new equip-
ment that process is expected
to reduce to between five to
six years.
Speaking during a field-day
at Arnold Research Station in
Shamva, Seed-Co non-execu-
tive director Mr Michael Ndoro
said the company is working
towards introducing technolo-
gies which fight against food
shortages through introducing
seed varieties which are suita-
ble for different climates.
“The laboratory will be used
to enhance breeding progress
through what is called Molecu-
lar Marker Assisted selection,
to make new inbred lines using
Double Haploid Technology and
advanced plant pathology.
“Overall, the laboratory will
contribute to enhancing food
security in Zimbabwe and
reducing dependence on for-
eign laboratories by doing seed
quality testing locally,” he said.
The new laboratory is expected
to be functional by the end of
this month with some remain-
ing components to be imported
from Europe.
Mr Ndoro added that the
food security will be achieved
through, among other benefits,
the speeding up of the pro-
cess of releasing new varieties
for the benefit of farmers in
marginal environments who
will get new varieties much
quickly; and increasing breed-
ing gains in terms of improving
the yield potential of existing
varieties.
Currently Seed-Co has secured
2 000 tonnes of fast growing
seeds for the next season to
fight against climate change.
He added that Government
continues to put in place
various initiatives to ensure
that it stimulates production
in all sectors of the agriculture
sector.
“Government has already
signed the Comprehensive
Africa Agriculture Develop-
ment Programme (CAADP) as
a catalyst for mobilising local
resources for financing the
agriculture sector in Zimba-
bwe.
“This programme is also aimed
at strengthening their efforts
to enhance the development of
agriculture to improve incomes
of the rural populations. On
the technical side, we com-
mend Government for working
with development partners
such as the Food and Agricul-
tural Organisation to deal with
matters related to soil fertility;
while also paying attention to
the livestock sector,” he said.
Seed-Co managing director
Mr Denias Zaranyika said the
company will continue to work
on new seed varieties and low
nitrogen varieties which will
benefit farmers under El Nino
conditions.
“You will have noticed that our
key focus is to continuously
review our basket of products
with a view to developing or
improving on the yield and
drought and disease tolerant
levels of our cultivars across in
all types.
“While we have successfully
introduced very short and
ultra-short season varieties
we continue with other efforts
to look at the development of
varieties that are adapted to
low nitrogen requirements to
assist especially our farmers in
the rural areas,” he said.●
5 news
Seed-Co acquires new maize seed breeding lab

6. BH246

7. By Funny Hudzerema
HARARE - The leather indus-
try has called on Government
to intervene in the exportation
of raw hides by unscrupu-
lous leather importers which
is affecting the growth of the
sector.
Secretary for Zimbabwe Leather
Shoe and Allied Workers Union
Mr Isidore Zindoga said there
is capacity for growth of the
leather industry if value addi-
tion is taken seriously.
“We are fighting to re-establish
the industry and one of the
challenges we are now facing is
the importation of raw hides by
unscrupulous individuals.
“The unscrupulous individuals
are being offered importation
licenses by the ministry of
agriculture irrigation and mech-
anisation and the people are
exporting raw leather to other
countries,” he said.
The country still largely exports
raw hides. In 2011, the indus-
try exported 5,4 million kg of
hides and skins worth $28, 2
million while in 2012, over 5,5
million kg worth $29,2 million
were exported.
“Raw leather is the initial stage
in leather production so once
we run short of those we now
have the big problem because
we are no longer able to pro-
duce quality leather.
“By exporting raw leather we
are also exporting employment
opportunities as a country and
this is far away from the value
addition concept,” he said.
Mr Zindoga added that the
industry should be revitalised
through addressing issues
affecting the sector from the
farmer who produce the leather
to the level of manufacturing.
“Our challenge now is to link
rural farmers to the market
since they are now the big-
gest producers of leather after
leather production has shifted
from commercial farmers to
rural.
“We have to remain competitive
on the export market but we
can’t be competitive enough as
long as we don’t have enough
relevant skills,” he said.
Currently the country is export-
ing high volumes of raw leather
and importing it back as fine
leather which is stifling the
growth of the leather industry
and has resulted in the closure
of a number of leather compa-
nies.
“The leather industry doesn’t
require large amounts of money
but there is need to retool the
industry through acquiring
new equipment and reducing
the exportation of raw leather.
There is also need to review the
leather industry strategy since
the last review was done four
years ago.
“The strategy of the leather
industry strategy is very noble
but nothing has been done to
see that the strategy is fully
functional practically,” he said.
●
Zim leather industry calls for raw hides exports ban
7 news

8. By Munesu Nyakudya
HARARE –Innscor’s bakery
division, Bakers Inn is aiming
to expand into the region once
it captures 50 percent of the
local market, CEO Mr Ngoni
Mazango has said.
Mr Mazango told BH24 that the
company first need to ensure a
50 percent market share from
the current 44 percent.
“At the present we have got 44
to 45 percent market share and
we see an opportunity to get
to at least 50 percent market
share.
“When we get there we want to
move into the region. We still
need to ensure that every tuck
shop in Zimbabwe and every
vendor have got our product.
“We have got the capacity to
ensure that we cover the whole
of Zimbabwe before we venture
into the region,” he said.
He said they are currently car-
rying out some due diligence on
how to enter the region.
Mr Mazango said the company
has got a sound distribution
network nationwide in terms
of the vehicles and has just
acquired around 200 new
vehicles to ensure that their
products reach every customer
around the country.
He added that as a business
they have not been spared
from some of the challenges in
the economy but this has not
stopped them from coming up
with measures to boost sales
and reward their customers.
Bakers Inn is currently conclud-
ing its ‘Buy and Win’ promo-
tion, which has been running
over the past month, which the
CEO said had driven up their
volumes.
“We are very happy with the
promotion. We saw our volumes
growing by 20 to 25 percent
and we are very grateful to our
customers,” Mr Mazango said.●
8 news
Bakers Inn eyes regional markets
Mr Ngoni Mazango

9. HARARE - After posting a
0.12 week-on-week gain
on Friday, the mainstream
industrial index has main-
tained the positive momen-
tum opening the week with a
0.48 gain to close at trading
at 98.40.
Beverages giant Delta led
the movers with a $0,0060
to trade at $0,5710, while
milk processor Dairibord
rose $0,0048 to close at
$0,0558 and Old Mutual
added $0,0047 to $2,2172.
Giant telecoms Econet closed
at $0,2594 after a $0,0044
gain and seed producer
Seed-Co rose by $0,0015 to
settle at $0,6515.
On the downside, Radar lost
$0,0048 to $0,0200, Power-
speed retreated $0,0020 to
close at $0,0230 and Bar-
clays shed $0,0009 to trade
at $0,0270.
Fidelity Life eased a mar-
ginal $0,0004 to settle at
$0,1026.
The mining index was flat
at 20.16 as Bindura, Fal-
gold, Hwange and RioZim all
maintained previous price
levels at $0,0102, $0,0050,
$0,0300 and $0,1100
respectively
- BH24 Reporter ●
ZSE9
Equities maintain bullish run

10. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Willdale 11.11 0.20 Radar -19.35 2.00
Dairibord 9.41 5.58 Powerspeed -8.00 2.30
OK Zim 3.07 4.02 Barclays -3.22 2.70
Econet 1.72 25.94 Fidelity Life -0.38 10.26
Delta 1.06 57.10
Innscor 0.26 18.75
Seed-Co 0.23 65.15
Old Mutual 0.21 221.72
Index Previous Today Move Change
Industrial 97.92 98.40 +0.48 points +0.49%
Mining 20.16 20.16 +0.00 points +0.00%
10 zse tables
ZSE
Indices
Stock Exchange
Previous
today

11. 11 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
11 April 2016
Energy
(Megawatts)
Hwange 356 MW
Kariba 453 MW
Harare 30 MW
Munyati 16 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1123 MW
• Upcoming AGM - Falgold, KPMG Building, Corner 14th Avenue/Josiah Tongogara Street, Bulawayo,13 April, 1000hrs
• 26th April 2016 - The Fifty-Sixth Annual General Meeting of the shareholders of British American Tobacco Zimbabwe (Hold-
ings) Limited; Place: British American Tobacco Zimbabwe Offices, 1 Manchester Road, Southerton, Harare; Time: 10.00 hours...
• 05 May 2016 - Barclays Bank of Zimbabwe AGM; Place: Meikles Mirabelle Room; Time: 1500hrs
THE BH24 DIARY

12. NAIROBI - Kenya's central
bank will provide a facility
to any bank or microfinance
institution that faces liquid-
ity problems through no
fault of its own, starting on
Monday, Governor Patrick
Njoroge said on Sunday.
Njoroge said the facility,
for which he did not give
the amount but said had no
upper limit, would be availa-
ble for as long as necessary
to provide a sense of calm
and reiterated that the finan-
cial sector was stable.
"From Monday, we will avail
a facility to any bank or
microfinance institution that
comes under liquidity for no
fault of its own. We will avail
this facility for as long as is
necessary," Njoroge told a
news conference.
Last week, the central bank
put Chase Bank Kenya into
receivership after its gross
non-performing loans rose
sharply last year. The mid-
sized bank was the third
lender to be taken over by
the central bank in nine
months, fuelling worries over
the health of the sector.
On Saturday, President
Uhuru Kenyatta said he
supported central bank
Njoroge's actions to protect
depositors' money.
"We are really dealing with
any fear, anxiety that is out
there," Njoroge said. `-
Reuters●
regioNAL News12
Kenya central bank to help banks that face liquidity pressure Rand hits 1-week
high on improved
risk appetite
JOHANNESBURG -South
Africa's rand firmed to a
one-week high against the
dollar on Monday as inves-
tors bought into riskier
but high-yielding emerging
markets assets.
"The riskier emerging mar-
ket currencies are doing
quite well this morning.
The risk sentiment seems
to be better than what it
was through the course of
last week," said ETM Ana-
lytics economist Jana van
Deventer.
At 0832 GMT the rand was
trading at its strongest
level since April 5, firming
1.04 percent to 14.8200
per dollar. - Reuters●

13. Hedge funds and other large
speculators boosted wagers
to the highest since at
least 1992 that the yen will
strengthen versus the dollar,
as Japan’s currency advanced
to a fresh 17-month high.
The yen is heading for a
seventh day of gains, the
longest winning streak since
September 2012, as specula-
tors defied rhetoric from Jap-
anese authorities aimed at
checking its advance. Chief
Cabinet Secretary Yoshihide
Suga repeated Monday that
officials are watching the
foreign-exchange market
“with vigilance,” and will
take appropriate action if
necessary. Deutsche Bank AG
and Bank of Singapore Ltd.
said the yen remains at or
below fair value.
“The yen is nowhere near
overvalued,” making it hard
to justify intervention, said
Sim Moh Siong, a foreign-ex-
change strategist at Bank of
Singapore. “Even though the
yen has moved quite sub-
stantially against the dollar,
you look at yen relative to
euro and other currencies it
hasn’t really strengthened all
that much.”
The yen rose 0,2 percent to
107.84 per dollar as of 6:48
a.m. in London after advanc-
ing to 107,63, the strongest
level since Oct. 27, 2014. It
was little changed at 123,09
per euro.
Japan’s currency jumped
3,4 percent last week and
has appreciated against all
its 16 major peers this year
as investors flock to haven
assets amid a rout in stocks
around the world.
Yen Undervalued
A measure of purchasing
power parity from the Organ-
isation for Economic Co-op-
eration and Development
shows the currency is still
about 2 percent undervalued
versus the dollar.
“Japan’s biggest problem
with the current yen rally is
that it is justified by funda-
mentals,” George Saravelos,
a strategist at Deutsche
Bank in London, wrote in a
client noted dated April 11.
The yen “is still expensive
or only just approaching fair
value” against the dollar, he
wrote.
Speculators increased bets
on yen gains against the dol-
lar to 98,130 contacts in the
week ended April 5, the most
in Commodity Futures Trad-
ing Commission data starting
in 1992. In mid-December,
bullish yen contracts were at
a 10-month low of 26,400.
A JPMorgan Chase & Co.
index measuring price swings
among Group-of-Seven
currencies rose toward the
highest since 2011 last
week. Price swings acceler-
ated after the yen strength-
ened past 110 per dollar for
the first time in 17 months,
fueling speculation that the
central bank will intervene to
weaken it.
“The yen can appreciate in
the short term, but the mar-
ket is extremely long,” said
Steve Brice, chief invest-
ment strategist at Standard
Chartered Plc in Singapore.
The currency may strengthen
to 106 per dollar, “and then
the Bank of Japan may come
in and intervene, and push it
back beyond 110,” he said
- Bloomberg●
internatioNAL News13
Yen renews 17-month high as hedge funds make record bullish bets

14. Millions of confidential doc-
uments have been leaked
from one of the world’s most
secretive law firms, exposing
how the rich and powerful
have hidden their money.
Dictators and other heads of
state have been accused of
laundering money, avoiding
sanctions and evading tax,
according to the unprece-
dented cache of papers that
show the inner workings
of the law firm Mossack
Fonseca, which is based in
Panama.
But how does tax avoid-
ance work?
1) An individual or company
transfers assets or cash to
the nominal ownership of an
offshore company, with the
transaction facilitated by a
law firm such as Mossack
Fonseca.
2) The offshore company is
registered in a tax haven
regime such as the British
Virgin Islands, which doesn’t
disclose who the beneficial
owner is and which doesn’t
co-operate with other tax
authorities. So the owner of
the assets can avoid national
taxes in their resident coun-
try – whether income tax,
capital gains, or corporation
tax – which might otherwise
be due.
This is purely an account-
ing issue. The individual
doesn’t move to live in the
tax haven. And the compa-
ny’s employees can be based
anywhere in the world. Going
offshore be used to hide the
proceeds of a crime from the
legal authorities.
3) To access the money, the
offshore company could lend
money with a zero interest
rate to a company based
in the home country of the
individual which is also ulti-
mately owned or controlled
by the individual or com-
pany that is avoiding tax.
This individual or company
can then extract cash from
the recipient company while
paying minimal tax. – Inde-
pendent.co.uk●
14 analysis14 analysis
Panama Papers: How does off-shore tax avoidance work?