Banking union rejects SME Bank closure

THE Namibia Financial Institutions Union (Nafinu) has rejected finance minister Calle Schlettwein's suggestion that the SME Bank be closed down.

Nafinu general secretary Asnath Zamuee slammed the move in a media statement yesterday. Last week Schlettwein said the SME Bank should be shut down if it failed to recover N$200 million allegedly 'invested' in South Africa. Zamuee called for urgent meetings with the ministers of finance, trade and public enterprises to try and find solutions. The closure of the SME Bank could be a blow to Nafinu, which makes money from union fees paid by workers of the troubled bank. The Namibian understands that Schlettwein suggested to industrialisation minister Immanuel Ngatjizeko and Bank of Namibia governor Ipumbu Shiimi two weeks ago that the SME Bank be closed. The suggestion, according to sources, came after Shiimi had written to Ngatjizeko and Schlettwein on 6 March 2017 asking for a bailout. A finance ministry senior official said Schlettwein told Shiimi and Ngatjizeko that the bank should be closed. Documents submitted to the High Court, in the ongoing case in which the former SME Bank executives are suing the central bank over their dismissal, reveal how the money was moved out of Namibia. According to the court papers, about N$200 million was transferred to South African company Mamepe Capital, which in turn transferred N$150 million to VBS Mutual Bank.