The Reserve Bank of Zimbabwe (RBZ) on Saturday placed money lender, Lion Microfinance under curatorship for three months due to undercapitalization and weak management.
Lion Microfinance could not meet the required minimum capital requirement of RTGS $5 million.
“Notice is hereby given that Lion Microfinance Limited has today been placed under the management of a curator, for a period of three months in terms of the Microfinance Act (Chapter 24:29),” the Central Bank said in a notice.
“This follows a determination that the institution is not in a sound financial condition mainly due to critical undercapitalization and weak corporate governance.”
Lion microfinance had been placed under the curatorship of the Deposit Protection Corporation.
The company managing director Lynn Mukonoweshuro has also been suspended pending a disciplinary hearing following a Reserve Bank of Zimbabwe (RBZ) investigation in March and various allegations of misconduct.
This comes as the seasoned banker has had a troubled history at AfriAsia and Kingdom Financial Holdings Limited (KFHL), and she is facing up to seven counts of wrongdoing and incompetence in the latest spate or case.
As such, the company has appointed Lameck Gweshe as acting MD and was commissioning a forensic audit.