Bank of Mozambique removes Gapi directors

17 June 2019

The Gapi Investment Company has no executive directors, after the Bank of Mozambique (BdM), on 4 June cancelled the special registration of the executive directors of the institution, António Souto and Anabela Mucavele, Mozambican news agency AIM reported.

 

 

This intervention on Gapi follows similar positions in 2016 on Mozambican credit institutions, when the BdM revoked the operating license of Nosso Banco and also intervened in Moza Banco, which at the time was considered to be the fourth the most important credit institution in the Mozambican financial system.

 

The BdM justifies the decision to dismiss the executive directors of Gapi based on, “not meeting the requirements for suitability,” as since 2007 the Investment Company has had “systematic non-observance of the rules governing the operation of credit institutions,” particularly with regard to reporting financial and prudential information and failure to comply with the recommendations issued by the central bank following an inspection carried out on 12 June 2012.

 

The BdM said Gapi is in technical bankruptcy, has negative equity, the solvency ratio is below the established minimum of 8%, it has a deficit of regulatory provisions and excessive concentration of risk.

 

Gapi’s shareholders met to discuss the restrictions and accusations made by the Bank of Mozambique, including the removal of directors António Souto and Anabela Mucavele.

 

The Community Development Foundation (FDC), Graça Machel (10.55%), the Mozambican Red Cross (8.91%), the Institute for State Participation Management (IGEPE) (10.25%), Gapigest (25.64%), the CTA (19%) and GTT (Managers, Technicians and Workers) (25.64%) are the shareholders of Gapi. (Macauhub)

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