Trustco Group Holdings has said that it is noteworthy that Bank of Namibia Governor, Johannes !Gawaxab carries a concerning reputation, evident in his D+ grade in the Global Finance Central Banker’s Report, the worst of any post-independence central bank Governor.
The Group said this in a statement in which it was responding to the suspension of Trustco bank license by the central bank.
In a strongly worded statement, Trustco went on to say that his record (!Gawaxab) with previous Namibian institutions, including EOS Capital, Air Namibia, and the Social Security Commission, has raised questions about his stewardship.
“In a realm governed by integrity and accountability, such a record warrants thorough scrutiny,” said the Group.
Offering an explanation to the license suspension, the Group noted that in the Namibian banking landscape, where post-independence banking entities like E-Bank, City Savings and Investment Bank, Swabou Bank, and SME Bank vanished into obscurity, it is imperative to acknowledge that pre-independence banks are thriving adding that the poignant fact that no post-independence Namibian-owned bank has survived remains a matter of deep contemplation.
“In February 2021, Trustco Bank Namibia emerged from its seven-year incubation phase, primed for sustainable growth and stability. Our prudent approach led us to present several well-structured business plans and a substantial investment proposition of up to NAD 1 billion to the BoN. Regrettably, all plans were rejected with scepticism and deemed excessively ambitious by the regulator. The divergence in opinion prompted ongoing dialogue and review. During this phase, we were embroiled in a Section 57 notice and subsequent litigation, confirming our commitment to rigorous oversight and the protection of our investment in Trustco Bank,” the Group said.
In terms of jurisprudence, the Group said it stands resolute.
“A pending contempt of court application against !Gawaxab, alongside other key members of the BoN management team, instituted by other members of the financial services industry, speaks to the gravity of the situation. Our pursuit of truth and justice extends to a pending High Court application, compelling !Gawaxab to appear and provide oral evidence under oath regarding the Trustco Bank matter,” said the Group adding that it remains steadfast in its commitment to robust corporate governance, accountability, and ethical conduct.
The CEO of Trustco Group, Dr Quinton van Rooyen noted, “While this suspension poses new obstacles, Trustco remains unwavering in the quest towards economic justice for all Namibians. Our mission has always been financial inclusion and wealth creation. Trustco Bank represents a crucial avenue for advancing this purpose. We appreciate the patience of stakeholders as we remain committed to resolve this matter swiftly and responsibly, guided by our enduring vision for Namibia’s future.”
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