Zimbabwean Finance Minister Tendai Biti said Wednesday that he has fired the board of directors and management of Renaissance Merchant Bank Limited amid accusations by the Reserve Bank of Zimbabwe that the institution has serious governance issues.
Biti told reporters in Harare that Renaissance will not be allowed to do banking business until allegations that it has flouted principles of corporate governance are settled.
Biti did not detail the activities referred to by the central bank. He said Renaissance is in sound financial condition - but at the same time announced that an investor has been secured to inject US$70 million to reinforce the institution's capital foundations.
“Government will not allow Renaissance and other banks to collapse and this investment will bring much-needed cover in the short-term,” the finance minister said.