Namibia's Small Medium Enterprises Bank has been placed under curatorship and with its chief executive officer fired after it was discovered that he authorized certain investments that do not conform to sound principles and have the potential of risking the bank's stability.

The announcement was made Wednesday in Windhoek by the Bank of Namibia governor Iipumbu Shiimi.

Shiimi did not say how much money is involved apart from that the Bank of Namibia was investigating the matter.

The SME Bank, a joint venture between the Zimbabwean banker Enock Kamushinda and the government of Namibia, was opened in 2012.

Shiimi said in addition to placing the bank under curatorship and firing the chief executive officer, they also decided to dismiss the board of directors, the finance manager, and general manager for treasury with immediate effect.

According to Shiimi, the Bank of Namibia that has been supportive of the role of the SME Bank in growing small businesses will now be the majority shareholder on behalf of the government.

During the period of curatorship, Shiimi said, the customers will have full access to their money, while he appealed to those who owe the bank to pay their installments.

source: Xinhua