The transaction at issue
Upon verification and authentication of a supply contract between Government and Pioneer Investments, the Government gave an undertaking to CDHIB to pay all contract proceeds into Pioneer’s account with CDHIB. On the back of the Government undertaking, the Bank provided finance to Pioneer Investments to fulﬁl the supply contract with the Government. The Government confirmed delivery of the goods by Pioneer. In spite of the undertaking, the Government was in breach and paid the contract proceeds directly to Pioneer Investments. The Bank successfully sued both Pioneer Investments and the Government to recover the money owed to it.
The Bank will pursue its rights
The Bank will robustly pursue all avenues available to it at law to recover the debt in full, and any losses and damages it may suffer.
No disruption to business
The Bank assures all customers that there is no disruption to the Bank’s business due to this unfortunate occurence. Mr Esau has stepped aside from the position as CEO/MD of the Bank to pave way for investigations into the allegations.
The Board has asked Mr Jean Rene Ngando Moukala, Deputy Chief Executive Oﬃcer of the Bank to assume the duties and responsibilities of Chief Executive Oﬃcer of the Bank in an acting capacity.
By order of the Board
7 March 2019