The Bank of Namibia has withdrawn its High Court application to liquidate Trustco Bank Namibia after the bank voluntarily surrendered its banking licence, effectively bringing the legal process to an end.
The central bank had initially approached the court to wind up the banking entity. However, following the surrender of the licence, the regulator confirmed that the application had become unnecessary.
Deputy Director for Corporate Communications and Sustainability at the Bank of Namibia Naufiku Hamunime said the surrender of the licence removed the legal basis for the liquidation proceedings.
“The Bank withdrew the application as it became moot following Trustco Bank’s voluntary surrender of its banking licence. The surrender of the licence effectively removed the basis for the liquidation application, rendering the relief sought academic and the matter moot,” Hamunime told The Brief.
The withdrawal means the court will no longer consider the liquidation of the banking entity, as the institution is no longer licensed to operate as a bank.
According to Trustco Group Holdings, the former Trustco Bank remains solvent and all depositors have already been repaid in full. The company said no depositor, creditor or stakeholder suffered financial losses.
Trustco added that the banking operation represented less than one percent of the group’s total investment portfolio at the time.
Trustco Group Chief Executive Officer Quinton van Rooyen said the withdrawal closes one of several regulatory matters the group has dealt with in recent years.
“Another case put to bed. Another saga concluded. Trustco has navigated a series of complex matters in recent years and one by one these matters are being resolved,” van Rooyen said.
He also welcomed the appointment of Ebson Uanguta as governor of the central bank, expressing confidence in the institution’s leadership.
The development effectively closes the court process linked to the liquidation application and confirms that the former banking entity will not undergo formal winding-up proceedings following the surrender of its licence.
This article was first published here in partnership with The Brief