8 October 2011

Zambia: BoZ Hand FBZ Back to Owners

THE Bank of Zambia (BoZ) has with immediate effect handed back Finance Bank to its previous shareholders.

In a Press release made available to the Times yesterday, BoZ head of public relations, Kanguya Mayondi said the bank had been handed over effective Friday, October 7, 2011.

He said Finance Bank would continue to conduct normal operations.

President Michael Sata reversed the sale of Finance Bank Zambia (FBZ) to First Rand National Bank (FNB) and ordered that the bank be returned to the original owners.

Mr Sata announced the decision to reverse the sale of the bank at State House during a swearing- in ceremony for various Government officials on Monday.

He said he had conducted a search whose findings revealed various anomalies such as non-availability of the document for the sale.

"I have been doing a search on the sale of Finance Bank and there isn't even any document for sale and therefore I am instructing the Minister of Finance to reinstate and take back the bank to the owners of the bank immediately," he said.

Mr Sata has also directed Finance and National Planning Minister Alexander Chikwanda to avail him with a report on how K30 billion was siphoned from the Government during the undertaking of the transaction to sell the bank.

The Bank of Zambia (BoZ) last month sold selected assets and liabilities in Finance Bank Zambia Limited to First Rand National Bank Zambia Limited at a net cost of K27 billion . Last year, BoZ took over supervisory action against FBZ and took possession of FBZ.

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