By Caroline Nyekanyeka
MyBucks Malawi has assured the public that bankruptcy process of its SA-based parent company has not impacted its operations, saying before the South Africa company was placed into bankruptcy in December, there were already processes underway of disposing of its 100% shareholding in MyBucks Malawi to a strategic investor.
Thus, MyBucks Malawi management assures its clients and the general public that despite the bankruptcy process by its mother company in SA, it continues to operate normally.
MyBucks Malawi issued the public notice after the Malawian media picked up the events happening in SA that hinted they were bound to affect MyBucks Malawi.
“My Bucks SA, a fintech company and the parent company of MyBucks Malawi, was indeed placed into bankruptcy in December 2021 and is under management of a receiver,” says the notice, adding that the receiver management is being supported by the Reserve Bank of Malawi.
“All relevant stakeholders have agreed to continue with the process of selling the shares to a strategic investor [and] we are and will continue to work with the Reserve Bank of Malawi on this process.
“The Bank continues to operate as normal in line with the Banking Act, and local operations have not been impacted by this development. It is also important to not that MyBucks Malawi is not under any bankruptcy order of receivership.”
On Februay 17, 2022, South African online, itweb.co.za reported that MyBucks SA was placed in bankruptcy by the Luxembourg tax authority, l’Etat du Grand-Duché de Luxembourg.
The report said the fintech, owned by Johannesburg Stock Exchange-listed Afristrat, notified shareholders a day before that whilst it had previously made representations in court in order to prevent MyBucks from being placed in bankruptcy, the court of Luxembourg has concluded the matter and upheld the bankruptcy application.
The report also says MyBucks has the right to appeal this matter and is considering its options, while quoting Afristrat as saying its board of directors had since “concluded an analysis of MyBucks SA regarding its financial position, which culminated in the realisation that the future prospects of MyBucks as an investment vehicle was unsustainable and would not provide any realistic turnaround value for Afristrat in the future”.
According to itweb.co.za, MyBucks — the African-focused fintech company — offers unsecured consumer loans, banking solutions and insurance products to customers through its three brands GetBucks, GetSure and GetBanked.
“The company experienced exponential growth since its inception in 2011, becoming operational in nine African and two European countries.
“MyBucks, previously listed in Frankfurt, has since last year been pursuing former senior executives at its South African subsidiary, VSS Financial Service, for alleged financial mismanagement and accounting irregularities.
“The unravelling of the alleged ‘irregularities’ resulted from a damning forensic investigation that the company said at the time justified its move to bring justice to bear and to seek rectification from those individuals that the report clearly identifies as having prejudiced VSS and its stakeholders.
“The investigation probed the merits of a R100 million investment in MyBucks by JSE-listed services group Ecsponent, which concluded the investment deal in January 2019 with MyBucks.
“At the time, Ecsponent said MyBucks was a perfect fit in respect of the group’s target profile, as the internationally-listed company offered a high-technology, high-profit margin business, while providing significant barriers to entry.
“However, Ecsponent conducted its own internal investigation after fears that the worthiness of the investment may have been falsified.
“After the internal appraisal, Ecsponent instituted an independent forensic probe into “possible misrepresentation on the merits and purpose of the investment at the time of the initial investment proposal, which may have ultimately resulted in financial loss to the company.”