Metbank, Zambian firm lock horns
Zimbabwean bank Metbank is embroiled in a scandal in which it has reportedly failed to pay US$78 000, in a transaction that involved delivery of maize by a Zambian firm, Yetu Agro.
Documents seen by NewsDay Business show that Power Zimbabwe, a company under the War Veterans Affairs ministry, got a contract to supply the Grain Marketing Board (GMB) with 10 000 tonnes of maize from Zambia in 2016.
The company entered a supply/purchase contract with Yetu Agro, locally represented by business tycoon Nkosilathi Sibanda, at a cost of US$390 per tonne.Metbank subsequently issued a letter of credit to Yetu Agro’s bank which was First Capital Bank Zambia, payable through Ecobank France.The documents further noted that because of payment challenges that Metbank faced coupled with some logistical problems on the Zambian side, only a total of 1 320 tonnes were imported.
“For the tonnage imported, a total of US$514 800 was drawn from the escrow account into the Power Zimbabwe (sic). Out of that drawn-down amount, Power Zimbabwe withdrew a total of US$151 800 leaving US$363 000 to be remitted by Metbank to Yetu Agro bank account at First Capital Bank Zambia,” read the document.
It further noted that after the first payment of US$46 200 to Zambia, US$6 400 was paid to the Zimbabwean representative for operational expenses as per instruction from Yetu Agro.