FNB agrees to Finance Bank Deal deal termination provided it is within the law


South Africa’s FirstRand (FNB) has anounced that it had received formal notification from Zambia’s central bank over the termination of a $5.4 million deal to acquire Finance Bank and would comply with the directive.

“FNB has agreed to this request, and provided the process is within Zambian law, we will continue to engage with BOZ (Bank of Zambia),” it said in a statement.

According to the press statement issued by FNB’s Dr Michael Jordaan, “FNB has now received formal notification that the Bank of Zambia (BOZ) will not proceed with the proposed transaction previously agreed with BOZ, to sell to FNB selected assets and liabilities of Finance Bank of Zambia (FBZ).”

“BOZ have confirmed that they no longer require the services of the FNB staff who were seconded to BOZ to manage FBZ in December 2010, and have taken back the day to day management of FBZ”, read the statement.

The statement continued by saying that BOZ had indicated that they wished to enter into a process with FNB to terminate the existing legal agreement relating to the proposed transaction. FNB has agreed to this request, and provided the process is within Zambian law, we will continue to engage with BOZ.

“The FNB staff seconded to Bank of Zambia are in the process of returning to South Africa. In the meantime FNB Zambia remains committed to growing its current greenfields operations and will continue to focus on supporting its staff and servicing its customers, ” the statement comcluded

Bank of Zambia seized Finance Bank from its shareholders in 2010 for legal violations, including questionable loans. Finance Bank’s chairman has said the seizure was politically motivated.

BOZ Official letter of Hand over


  1. Where is Mr Capitalist and MMD Bootfimofimo? This is what I have been saying. RB has to explain this.

    • Before RB was president, he had a loan from Finance Bank which he was unable to pay. As a result he had his house repossessed. When he came back into politics, it was revenge time!

  2. @#2 Strawberry. lol! Unfortunately MMD is going down under! I doubt there will be MMD in 2016. The guys have a lot answers to give and as result you will see them jumping to PF one by one.

    Why haven`t FNB put up a fight if things were done properly? Surely they would have been making statements here. I have always said no wonder some one was saying he knows he is going in. The man has been found out.

  3. FNB, please dont take Zambians for a ride. Which law are u talking about when u knew that u did not follow the law in the first place. I suggest that the Zambian government should sue FNB and other Zambians engaged in this scum. Imagine, FNB has already brought its people to run OUR bank! 

  4. They, the banda mafia were so confident of winning that they were prepared to sacrifice any Zambian, entity so long as they profited. Welldone MCS and the new BOZ management.

  5. # 2, 3, and 4 I totally agree with you. . . . Wow . . . what does FNB mean “if it within the law”??? Was the sale not done within the law FNB. What do you take us for??

  6. If this deal had gone through this would have been the BIGGEST  scoop of the decade for FNB, $5 Milly if this is possible just imagine what we would find if we reviewed the sale of the mines that happened behind closed doors by MMD…it just pains me to just think about it.
    Where are the investigative journalists in Zambia, check the shareholders of this RSA bank as getting an established nationwide bank for mere $5 million will definitely increase its share price…the should be someone there maybe even former BOZ Governor and Buffoon RB & Son go and fetch!!!

  7. Mahtani embraced by Kaunda, Jailed by Chiluba, embraced by Mwanawasa, prosecuted by Banda, embraced by Sata…. Now tell me, who has a problem?

    • The problem is that the corrupt group of leaders cant take it that Mahtani is that rich. And when he refuses to give them brides, they arrest him. Follow the pattern. Kaunda was NOT corrupt, he embraced Mahtani. Chiluba was corrupt, he jailed Mahtani. Mwanawasa was NOT corrupt, he embraced Mahtani. Banda was corrupt, he prosecuted Mahtani. Sata is NOT corrupt, he embraced Mahtani. So Mahtani can be a used to measure which leader was corrupt or not. Only those that were corrupt were against Mahtani. 

    • Mahtani is the culprit…Don’t get into bed with politicians its bad for business especially when you not squeaky clean!!! 

  8. May be some Zambian chaps behind the scenes were going to be shareholders in the acquired F. bank. People can do dodgy deals like that.

  9. Let us size FNB Zambia and send them packing, what were you doing being ‘seconded’ to BOZ what an insult to the inteligencia of Zambia..no wonder Caleb was fired the man allowed this or the so called board allowed this to happen? Anyway he was the Chairman of the board so he should go with his board…whatever happened to committees of the board?

  10. When His excellence made a pronouncement, of a reversal of sale, he had data but some short minded pople condemned the move that he was too fast, You see SATA has data which will take you century to get. Look at what he outplayed the joint UPND and MMD on SPEAKAKER? he palyed their game and won. Now HE had to make swift moves to avoid the length parliamentary procedure which mixed with sadddists, if you did not know. Its a game of chase where as you play you see 10 moves ahead. I commend him for swift moves. They guys would have manipulated documents to facilitate the whatever deals they did. Lets watch watcch game mean while, he has not said RB should be prosecuted but the its the job of the investigative wings now in place to do it. Well done lets go Zambia with PF forwar

  11. Truth be told, FNB would have become a monster of a bank with this deal. Easy pickings for their footprint in Africa, raising their presence by 50% outside South Africa. I’ll wager that they likely cut some corners in order to get this deal because it was on a platter – the only cost was the kick-back to a cabal in RB’s inner circle.

    Let’s not forget that FNB, since its entry into Zambia, has been uncharacteristically low key given its tendency to chest thump in other markets. Zambia has been an entirely different proposition for them and FBZ offered the easiest expansion avenue.

    It’s clear that after being dealt this blow, the bank can only grow if it focuses on mobile banking which has been their ace in hand across their operations especially in Botswana.

  12. Good evening

    You don’t have to be an accountant or a competent Banker to know that this was a raw deal.

    I can hardly wait the to hear the findings of the investigation report to see where the strings were attached. Let’s hope things now return to normal and the legal dispute does not have a negative effect on business relations between BOZ and their South African counterparts.

  13. #13 GENERAL – you seem to be proud of your mediocrity. If this was RB you PF cadres would be condemning whichever decision he would take. Viwamila che wakwanu. Sata better be careful. He is committing the same one-man decisions that RB was condemned for. In just 2 weeks Sata has committed more constitutional offenses than RB did in 3 years. Remember that PF does not own the country and that the total number of voters who voted for Sata are below 50%. He shouldn’t do anything that he will regret in future. We will not let him scot free with all this corruption he has started of saving Mmembe from prosecution over Finance Bank loan by saving Mathani so that Mathani stops calling back the loan. We are observing, we are not fools. Even the POST is warning Sata already! Watch it!!

  14. In all fairness to FNB, they were invited by your government (then) to help BOZ in the FBZ saga. This is normal bank supervision by BOZ. The problem is around how come BOZ offered FNB to buy FBZ. BOZ is the seller & FNB is the buyer. Why are people blaming the buyer?

  15. We zambians Bembas , Tongas , lozis and every other dialect united and unanimously conquered the main stumbling block to our advancement , COLONIALISM, AND EMERGED ON A NARROW RUGGED SHELF but we should not allow political kleptocrats to takes us back to narcissit obsequious backwardness but from sata we should now seek to elect energetic, creative, and educated young bold leaders who are concomitant with the grass root level politics and build this thing with less corruption and usher into the 21 st centuary

  16. The problem is that the corrupt group of leaders cant take it that Mahtani is that rich. And when he refuses to give them brides, they arrest him. Follow the pattern. Kaunda was NOT corrupt, he embraced Mahtani. Chiluba was corrupt, he jailed Mahtani. Mwanawasa was NOT corrupt, he embraced Mahtani. Banda was corrupt, he prosecuted Mahtani. Sata is NOT corrupt, he embraced Mahtani. So Mahtani can be a used to measure which leader was corrupt or not. Only those that were corrupt were against Mahtani. 

  17. fnb is still in zambia this is not the last we’ll see of them thou don’t forgot that fnb was going to take on some of the liabilities of finance bank which probably came up in millions of dollars , 5 million my have been the difference . balls is in mahtani court his got a mountain to climb but hopefully the bank will get sorted out now 

  18. Where are those MMD campaigners Senior Citizen, The Engineer, Bootlicker..etc. You chaps were busy insulting us when this deal first transpired calling us ignorant, brainless etc Are you chaps man enough to eat humble pie and apologise? Submit Comment below 

  19. “The statement continued by saying that BOZ had indicated that they wished to enter into a process with FNB to terminate the existing legal agreement relating to the proposed transaction. FNB has agreed to this request, and provided the process is within Zambian law, we will continue to engage with BOZ.”

    So what sales legal document is BOZ requesting FNB to terminate? Were we not told by the president that the was no legal document for the sale that why he was taking the bank back to the previous owners???

    This place has really become a joke… 

  20. What’s more comical selling a Nationwide bank + international agencies for a mere $5 million or ironing out some legal documentation?? eh you chaps should give it a rest?? 

  21. African will never develop as long as individuals , companies and some wealth governments continue to benefit from other countries through CORRUPT means. FNB should just BUILD their base in Zambia other than making short cuts. In other countries, people may even boycott this bank. 17 Galito. As a buyer, you are supposed to do a PROPER DUE DILIGENCE before committing yourself  to such an agreement. In this instance FNB is part of this CORRUPT TRANSACTION PERIOD! 

  22. A very poorly written memo – even the name of the Head of Public relations is not there — just his signature. Yaba.

  23. AB you are wrong Mahtani went to prison twice in the Kauda days, the first time for trying to export USD hidden in TV from Lusaka Int.Airport and the second time for forging Import Licenses and having fake GRZ stamps………………..FTJ also prisoned him over various allegations Mwanawasa cleared him , Banda prosecuted him and Sata has given his bank back!!!!!!!!!!

  24. @25
    You’re more interested in the structure and grammar of the memo instead of the contents, are you chaps that bitter really pathetic. Can’t see it says for immediate press release you see the urgency in that you wanted proof of documentation, when you get it, you start complaining about the stamp and envelope.
    C’mon guys get on board and lets build a country!!

  25. I am perplexed too that Senior Citizen (now Junior Citizen), The Engineer (now The Technician), and Bootlicker (now patapatalicker) have gone into oblivion on this site! The guys said Ba SATA can never be a President! We have followed President SATA for years and we know no person in out leadership is capable of delivering than Sata (check his record!) Also no politician has DATA on his finger tips (intelligency data) than Sata! So he knows what he is doing. You are welcome to go in sleep mode you loud speakers who have been proved wrong!

  26. Bakabolala baloba ilya uma! They know that pa Zambia palipwalala! Shoprite, Smart Center etc (NIEC stores, ZCBC) once taken for free!

  27. @28
    Spot on there, some us were young when Mr Sata became Governor of LCC but we still remember the visible changes he implemented from Bin collection, cleaner streets in City Centre, improved transport and even packaging of bread which was displayed without wraps back then. 
    Sata knows where most of these MMD crook’s bread is buttered ie. Road contracts, Mines, Construction projects etc to get the mice out of the hole, you set fire to one side of the entrance you will smoke them out one by one of the other side BUT first we have a NATION to build.
    You wait and see, you will see today’s very successful businessmen declaring bankruptcy overnight as the taps are turned OFF!

  28. ‘within the law’…….in other words as long as the South Africans get money in their pockets, they are not bothered we can get our bank keep recapitalising it with taxi payers money as Mahtani gets fatter.

  29. # 16 Gokigo Milazhe: I can see how hurt you are. General is not a carder (PF) and will never be one. “U”mistaken big time. I am sure you are sweating if some of them are your relatives, Sorry we do not owe you any apology for that. , Let the Law take its course. For your own information, the evils of MMD being followed. It is embarassing your RB could sink so low even day light try to robe ZRA of K4 billion & you say SATA made a mistake, you are dam lost you can go to hell , I do not give it a damm. Several Zambian are suffering because of wrongs done by MMD just in 3 years, how about if it was given 5 years more?? hahaha Mobile hospitals..ZAMTEL, Finnance bank, RDA, $98 NPF scandal come on the list is endless. Just shut U

  30. #28 and 31 you guys I commend you. spot on
    I honestly pitty the # 16 Gokigo Milazhe. He perhaps have some of his relative feelling the the smoke at the end of the tunnel. Just wait he disputed my comment trying to console himself that SATA has made constitution blunders. My dear continue dreaming and fantasizing. Perhaps you are where you are because sooner or later the tap has been turned off you are in sheet.

  31. Either way this is not good for zambian image to foreign investors.They’ll either think we’re corrupt to the bone,we don’t protect foreign investors or you can’t trust the zambian system that what is written will pass the test of law.Whichever side is in charge, the PF or MMD any foreign investor would be wary of putting money in zambia with this type of game bcoz either of them will find a reason to turn against you.

  32. Mahtani is not even a Zambian but holds a British passport and has been conning Zambian citizens for years. Mahtani also participated in the Carlington Maize deal scam. Mahtani also overcharged the Zambian people when he was procuring oil for Zambia. Mahtani has a long history of being crooked which started when he used to steal from his parents shop in Ndola.

  33. The only reason Sata has given back the bank is because Mahtani was the PF sponsor in the last two elections. There was nothing wrong in BOZ seizing FBZ. The wrong doings by Mahtani’s Finance Bank are very well documented.

  34. This is good news of the century. Sata needs to go into international records for doing what is right on this one.

  35. Nothing wrong in Mathani holding a British citizenship. There are many native Zambians who hold either America or British citizenships and are still Zambians even though our stu.pi.d laws does not at present respect dual citizenship. 

  36. lots of FAGS converging on this blog,all seemingly with  one thing in common and that is a crash on Michael  C. Screwer. By the way,where is Dollar Chi(le)lila. She`s suddenly stopped flashing.Well, with her Mardi gras  was frequent and not just a once a year event.

  37. #27 Maxwell – It is details like that that question the professionalism of whoever is involved. You cannot hide under urgency to be unprofessional. This is shoddy and should not be allowed. At this rate, populist decisions are going to haunt this Govt.

  38. Like the saying goes itsnot just what my country will do for me but what i will do for my country. Leaders should learn to be above bode and self. Honestly speaking a bank like FNB can not be sold for a song of 5mill dollars. Whether they like or not the law should visit them. I was shocked yesterday that the former finance ministre was caught with more than 1000 bicycles at his farm. What in the hell was he doing with all those bicycles? The fact remains that no one is above the law otherwise people will be doing things with impunity. Let the law visit them so that they explain what they were up to. Thank you.

  39. @ bamwine morning. this story about  the former minister of finance  being caght with more than 1000 bicycles where did you read it? site? just curious.

  40. Nawakwi was very right. Good thinking woman!
    Returning Finance bank to Mathani also makes it easier for the government to investigate him…talk of strategy.

  41. Well, FBZ violated the banking anf financial servcies act. That is a fact. The statement by BOZ is professional. No further explanations implying they are not in agreement with state house but just respecting authority. One day, a professional will be elected to the Presidency and this case shall come back. The records of the findings of the inspections are there and will be revisited at a later stage. Call the inspections findings politicalll motivated for as long as those things reproted happened it is still a crime. The motivation only showed us the crimes and punishment must be given in a rule of law. FBZ’s strength is only the health of Micheal Chilufya Sata.

  42. Mahtani owns 56.5% of Finance Bank through Finsbury Investments 25%; Caswells 25% and Albert Job Samuels 6.5%. This is contrary to Zambia’s banking and financial regulations which require a single shareholder to own not more than 25% of a Bank’s shares. It is ignorance of the highest order to claim that Finance Bank cannot be sold for $5.7m. The question is why not? The amount one pays for an asset is dependent on the book value. If liabilities exceed assets of a company one can pay as low an amount as $1 because he or she he is taking over a bankruptcompany. The Banking group Santander took over Lloyds TSB and Nationwide for next to nothing in the UK. The govts main concern was to protect depositors. FBZ has nothing but depositors money. All FBZ buildings are rented!

  43. BOZ took possession of FBZ, simply means that it took full control of the FBZ. Don’t put much blame on FNB because the SELLER IS BOZ and the BUYER is FNB, The Act lays down that “ there is an implied condition on the part of the seller that in the case of a sale he has a right to sell the goods and in the case of an agreement to sell, he will have such a right at the time when the property is to pass” My fellow Zambians let us not blame FNB for wanting to buy the FBZ, BOZ is to explain to the public what was behind the FBZ sale transaction. “FNB has agreed to this request, and provided the process is within Zambian law.”

  44. Now that the reversal is done, Government must return all the government accounts that were transfered to Finance Bank by Mwanawasa to Zanaco. Finance Bank was seen to be growing fast because of the Mwanawasa- Mathani connection. There is a lot that has not been revealed about Mathani and with the new connection he has with Sata, still a lot will be hidden. Anyway, five years is not a long period to wait, we shall revist these connections and heads will roll.

  45. Enka Rasha do not worry.Investors have finacial and inssurance advisors. Investors are human beings.They can also get tempted to exploit a weak system.Its up to us to put in strong laws.As for the FNB deal gone bad, FNB obvisiously knew that they were dealing with a polically motivated deal.They are paying the price.Peharps they thought that MMD was going to win. I can just wish them to be careful with how they aquire asserts not only in Zambia but anywhere in the world.

  46. they caall it calculated move and gumbling. Offcourse after taking risk assessments.In this case, the risk was higher but decided to gumble, just in case MMD won. In life those who are not prepared to take certain risk..can never excell except if the you loose, you loose big time and a win is a big time bonus.

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