BoN drops Trustco liquidation bid

Trustco Group Holdings has hailed the decision by the Bank of Namibia (BoN) to withdraw its application for the liquidation of Trustco Bank as a significant positive signal for the country’s financial sector. Trustco Group CEO Quinton van Rooyen described the move as a turning point, coinciding with a transition in leadership at the central bank.

The legal saga began on 18 August 2023, when the BoN suspended Trustco Bank’s authorisation to operate under the Banking Institutions Act. At the time, the central bank cited non-compliance issues and initially sought a temporary suspension, providing a six-month window for rectification before pursuing liquidation.

Leadership change and governance signals

Van Rooyen expressed confidence in the "fresh leadership" at the central bank under Governor Ebson Uanguta, stating that his expertise is well-suited for the strategic role. He noted that the central bank’s renewed governance approach comes at a critical time as Namibia works to be removed from the Financial Action Task Force (FATF) "grey list."

"New winds are blowing," van Rooyen said. "A renewed governance approach from the central bank is as good a signal as any that the country is turning the page."

Solvency and stakeholder security

Trustco maintains that the banking entity remains solvent and financially sound. Van Rooyen emphasised that, despite regulatory pressure, no depositors, creditors, or stakeholders lost any money during the process, and all depositors were repaid in full.

He asserted that the liquidation application was ultimately unnecessary, marking the conclusion of what he described as a complex saga. "Another case put to bed. Trustco has navigated a series of complex matters in recent years, and one by one, these matters are being resolved," van Rooyen said.