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Reserve Bank of Zimbabwe Governor Dr John Panonetsa Mangudya has put Zimbabwe’s Women’s Microfinance Bank Under serious scrutiny.This comes after the RBZ boss Unearthed Corporate Governance Issues At the Women’s Bank that found it wanting.
Governor Mangudya on Friday, 6 January, issued a statement stating the concerned bank’s board and shareholders have since initiated processes and measures to address deficiencies the Rbz Unearthed.The statement read:
“Members of the public are advised that the Reserve Bank of Zimbabwe concluded an onsite examination of the Zimbabwe Women’s Microfinance Bank Limited in December 2022, as part of its ongoing supervision activities in terms of Section 36 of the Microfinance Act [Chapter 24:30].
“The examination determined corporate governance and risk management weaknesses at the institution.
“As part of its supervisory processes, the Reserve Bank has engaged the institution’s board and shareholders who have since initiated processes and measures to address the deficiencies.
“The main mandate of Zimbabwe Women’s Microfinance Bank Limited is to facilitate financial inclusion and economic empowerment of women.
“The Government of Zimbabwe as a shareholder is committed to the resolution of the identified weaknesses to enable the microfinance bank to continue to perform its mandate.
“Through its supervisory processes, the Reserve Bank shall monitor progress on the resolution of the identified weaknesses,” ended Governor Mangudya’s statement.
Indeed from the above statement, the Reserve Bank of Zimbabwe has discovered corporate governance and risk management weaknesses the Zimbabwe Women’s Microfinance Bank Limited after conducting an onsite examination of the financial institution.
It means Corporate governance weaknesses include issues such as the presence of weak or ineffective internal audits, lack of required skills by managers, lack of proper disclosures, and non-compliance with standards.
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