Questions Mkono won`t answer about Bank M: Still precious little is known about new bank as launch date draws closer
KEEPING MUM: The registered office of Bank M (left) and its branch in another part of Dar es Salaam (right). Occupying centre stage is prominent city lawyer, member of parliament, and Bank M shareholder Nimrod Mkono, who is also understood to be the bank�s spokesman.
THISDAY REPORTER
Dar es Salaam
THE upcoming Bank M (Tanzania) Limited, whose registered office is located at a building owned by former president Benjamin Mkapa in Dar es Salaam, has for more than two months failed to respond to valid queries about its current status, operational plans and shareholding structure.
On May 23 this year, THISDAY submitted a set of written questions with an urgent note by dispatch to prominent city lawyer Nimrod Mkono - identified as the banks official spokesman � seeking clarifications on a number of key issues regarding the new bank.
However, the questions have gone unanswered so far.
When contacted by phone by THISDAY at one point, one of the banks stated major shareholders, Jeetu Patel, declined comment on any questions with the refrain that Mkono, who is also the Member of Parliament for Musoma Rural Constituency, was the banks spokesman.
THISDAY then proceeded to deliver written questions to the offices of Mkono and Co. Advocates in the city, seeking information about the owners and shareholders of the bank, its current licensing status with the Bank of Tanzania (BoT), and other aspects of its planned operations.
While response from Mkonos office has not been forthcoming, it is understood that Bank M has now opened another branch along Nyerere Road in the city, in what appears to be advanced preparations for a grand launch in the near future.
Amongst other matters, the questions from THISDAY to Mkono included inquiries about the backgrounds of some of the banks stated shareholders.
Under the Banking and Financial Institutions Act of 2006, individuals with criminal records or who have ever filed for bankruptcy are prohibited from becoming shareholders of a registered bank.
Around the same time that THISDAY delivered its questions to Mkono, similar queries were also made directly to the BoT Governor Dr Daudi Ballali, also in the form of written questions sent by dispatch.
However, Ballali has also failed to respond to the questions on whether or not (and if so, when) the BoT granted a licence to Bank M allowing it to operate as a commercial bank.
The BoT boss was also asked if the central bank had done a thorough background check on the banks registered shareholders. But again, there has been no response.
At a recent press conference in Dar es Salaam, Ballali dodged questions about Bank M and instead challenged anybody with evidence against the bank to send the proof to his office.
According to our findings, Bank M Limited has a listed share capital of 6.5bn/- and its shareholders include some very prominent business people in the country.
By February this year, the shareholders were listed as Jayant Kumar Patel (alias Jeetu Patel) of Noble Azania Investments Limited; Vimal Mehta of Negus Holdings Limited; and Fidha Rashid, a leading real estate developer and car dealer from Africarriers Limited.
Also linked to the new bank is Mkono, whose law firm (Mkono & Co. Advocates) drafted the memorandum of understanding and articles of association for the proposed commercial bank.
Mkono also holds a significant amount of shares in Bank M through Equity & Allied Limited, another of his companies. Other listed shareholders of the bank were Mr Sanjeev Kumar, a local banker, and Mr Bhaskaran Nair, a business executive.
The amount of listed share capital invested by each shareholder in the business venture is as follows: Negus Holdings Ltd (1.3bn/-), Noble Azania Investments Ltd (1.3bn/-), Africarriers Ltd (1.3bn/-), Equity and Allied Limited (1.3bn/-), Mr Kumar (650m/-) and Mr Nair (650m/-).
The registered office of Bank M is located at an inconspicuous, two-storey building with the physical address of Number 8 Ocean Road, in the quiet and affluent Seaview neighbourhood of Upanga in the city.
The building is right adjacent to the official residence of former president Mkapa and first lady Mrs Mkapa. It is understood that the former State House couple also owns the building, bought with certificate of title number 6809 from a private company, Tanzania Building Works Limited, in 2002.
At that time, Mr Mkapa was still the sitting president of the United Republic of Tanzania, while Mama Anna served as the countrys first lady. The couple completed two full five-year terms at Ikulu, as per constitution, in 2005.