Zimbabwean court recognizes SME Bank liquidation, paving way for asset recovery

This decision follows an application by the liquidators to be recognized in Zimbabwe, which was opposed by Metropolitan Bank of Zimbabwe Metbank, a minority shareholder in SME Bank. High Court judge Siyabona Musithu dismissed Metbank's objections, ruling that the legal requirements for recognizing the Namibian insolvency proceedings were met. The ruling permits McLaren and Bruni to administer SME Bank assets in Zimbabwe and to approach the Zimbabwean courts to register and enforce judgments from Namibian courts, though it does not automatically register or enforce these judgments.

The SME Bank was wound up in July 2017 by the Bank of Namibia. In October 2020, High Court acting judge Collins Parker found former deputy chairperson of the SME Bank's board, Enock Kamushinda, liable for N$247 million stolen from the bank. Parker also issued a judgment against Kamushinda, his company World Eagle Investments, and Metbank for N$1.02 billion, and additional amounts for outstanding share payments.

The Supreme Court in March 2024 affirmed that these orders could be executed, noting evidence of "prima facie criminal conduct on a rampant scale" involving theft of over N$247 million, largely perpetrated by Kamushinda and other Zimbabwean nationals through companies like Crown Finance and Heritage Inves