By Patience Gondo
THE Reserve Bank of Zimbabwe (RBZ) has cancelled the registration of Lion Microfinance Limited t/a Lion Finance Zimbabwe, a move that immediately affects clients who depended on the institution for deposit-taking microfinance services.
In a public notice issued on Thursday, the Registrar of Microfinance Institutions Philip Madamombe9, said the cancellation was made in terms of section 13 of the Microfinance Act [Chapter 24:30] with effect from the date of publication of the notice.
Madamombe said the decision followed a determination that Lion Microfinance was no longer in a sound financial condition.
The Registrar named three specific failures that led to the institution’s deregistration.
“The cancellation of registration as a deposit-taking microfinance institution followed a determination that the institution was no longer in a sound financial condition in that:
a) the institution failed to maintain the prescribed minimum capital for deposit-taking microfinance institutions;
b) the institution failed to take remedial action to address the deficiencies identified during on-going supervision; and
c) Lion Microfinance failed to conduct its business in accordance with sound administrative, accounting and risk management practices as required under the Microfinance Act,” Madamombe said.
He also said in the circumstances, the maintenance of registration of Lion Microfinance Limited as a deposit-taking microfinance institution is undesirable.
“Members of the public are accordingly advised not to undertake any microfinance business with the institution,” He said.