Bank of Mozambique notifies Frelimo veteran and chairperson of Social Security Institute

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Bank of Mozambique notifies Frelimo veteran and chairperson of Social Security Institute

7:00 CAT | 05 Oct 2018

File photo: Lusa

The Bank of Mozambique today notified Mariano Matsinhe, a “historic” member of Frelimo, the ruling party, Francisco Mazoio, current chairperson of the Social Security Institute (INSS), and Mussa Tembe, a former cheif executive officer of O Nosso Banco, to respond to allegations of contraventions in the insolvency of the banking institution.

The notifications are included in the notices that the Bank of Mozambique’s Department of Financial Supervision published in Notícias, the country’s largest newspaper. The trio have ten days to respond.

Matsinhe was a non-executive director of O Nosso Banco and is a historic leader of the Mozambican Liberation Front (Frelimo), having held important cabinet ministries in various ruling party governments.

Francisco Mazoio is president of the National Social Security Institute (INSS), which was the main shareholder of O Nosso Banco, and Mussá Tembe was the bank’s chief executive officer at the time of the intervention in the bank by the regulator.

The Bank of Mozambique decided to liquidate O Nosso Banco on November 11, 2016, naming Deloitte & Touche (Mozambique) to head the liquidation commission.

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The regulator did not mention in the notices the connection of the three figures to O Nosso Banco, but in an extensive article on the subject the weekly Savana says that the notification is linked to a process instituted following the collapse of that financial institution.

At the time, the central bank said that “it was not possible to recover the financial and prudential deficit” of the institution, which was unable to comply with a restructuring plan outlined in 2014, “endangering the interests of depositors and other creditors, as well as the normal functioning of the banking system”.

In May, the Bank of Mozambique dissolved the O Nosso Banco liquidation commission, citing non-compliance with legal obligations.

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Source: Lusa