10 January 2019

Mozambique: 'Nosso Banco' Directors Fined, Barred From Office

Maputo — The Bank of Mozambique has fined six directors and former directors of the now defunct "O Nosso Banco" ("Our Bank") each 500,000 meticais (about 8,200 US dollars) for their part in the bank's collapse in 2016.

Each of the six is also barred from holding any management functions or sitting on the bodies of any Mozambican bank or other financial institution for the next three years.

A release from the central bank names those fined as five executive directors (Mussa Tembe, who was the chief executive officer of Nosso Banco, Francisco Mazoio, chairperson of the National Social Security Institute, INSS, which was the largest shareholder in the bank, Adelino Buque, Tomas Sando and Jaime Mutolo).

Also fined was non-executive director Mariano Matsinha, who is a former security minister and former member of the Political Commission of the ruling Frelimo Party.

The release did not mention any sanctions against the Nosso Banco chairperson, Joao Loureiro, or against the other four non-executive members of the board.

Nosso Banco is the only Mozambican bank ever to have been liquidated. The Bank of Mozambique ordered the liquidation in November 2016. It revoked Nosso Banco's banking licence because of what it called a continuous degradation of the main prudential and profitability indicators, particularly weak capitalisation, and an unsustainable economic and financial structure, as well as serious problems of liquidity and management.

Nosso Banco, which was 77.2 per cent owned by the INSS, was a tiny outfit. It had a head office, three branches and eight ATMs, all of them in Maputo.

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