Monkagedi Gaotlhobogwe
13 November 2009
The Bank of Botswana says the value of abandoned funds in local banks stands at P9.4 million. The bank was responding to a Mmegi questionnaire following publication of over 4,000 abandoned bank accounts by the Central Bank last week.
The Bank of Botswana says as at July 27, 2009 the amount surrendered to the Bank of Botswana by the banks was as follows: Barclays Bank: P6.80 million; First National Bank: P1.95 million; Standard Chartered Bank: P0.70 million and Stanbic Bank P119.00.
The abandoned funds have been in the banks for more than 10 years and have been transferred to the Bank of Botswana after the banks failed to get the beneficiaries to claim the funds, according to the Bank of Botswana.
One of the accounts belongs to the Botswana National Front's Kopano House project, which was intended for the building of the headquarters of the opposition political party.
The ruling Botswana Democratic Party also abandoned funds in over six accounts belonging to the Lobatse, Gantsi, Gantsi Youth, Serowe, Palapye and Kanye branches, to name a few. Other notable accounts belong to the Kgatleng District Council, the Serowe-Palapye Sub-District and Serowe Development Fund.In a written response, Bank of Botswana PRO, Chepete Chepete says the publication of abandoned funds was done because the funds have been transferred to the Bank of Botswana by the different commercial banks in accordance with the requirements of Section 39(1) of the Banking Act (CAP. 46:04): "'Where a customer's deposit, or money lodged with a bank for any purpose, has been left untouched and not reclaimed for 10 years or more, and the customer has not responded within six months to a letter from the bank concerning the dormant deposit or money, and sent to the customer's last known address by registered post, the deposit or money, as the case may be, shall be deemed to have been abandoned and shall, without further formality, be transferred forthwith by the bank concerned to the Central Bank (Bank of Botswana),'" Chepete quotes.
If the funds are still not claimed even after their publication by the Bank of Botswana, and they have been held for more than five years, they are transferred to the Guardian's Fund, which is administered by the Master of the High Court from where they may still be re-claimed. Chepete says there are several factors that can result in a deposit being abandoned; one being that the owner of the funds (deposit holder) could be deceased and his/her family do not know about such funds.
Another could be a bank being unaware of the customer's whereabouts because he/she has relocated and not updated contact details with the banker.
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