Finance Minister Bwalya Ng’andu says government has no plans to resuscitate operations at Zampost Micro Finance Limited.
Dr Ng’andu said government is instead working on modalities of repaying the micro finance depositors and other necessities.
ZANIS Reports that the Minister of Finance made the remarks in Parliament today when responding to a question from Kantanshi Member of Parliament Anthony Mumba.
Mr Mumba wanted to know what caused the liquidation of Zampost Micro Finance Limited in July, 2019; whether there are any plans to resuscitate the company; if so, when the plans will be implemented; and if there are no plans to resuscitate the company, what the way forward for the employees is.
And the Finance Minister explained that the company was liquidated due to excessive borrowing and miss-allocation of funds.
“Responding to the question, government has no plans of resuscitating Zampost Micro Finance Limited. It was liquidated due to excessive borrowing and miss allocation of funds among the reasons. The Bank of Zambia is proceeding with the wind up and recovery of debts owed to the microfinance and pay off the depositors,” the Finance Minister said.
He recalled that prior to the liquidation, Bank of Zambia intervened by directing Zampost to formalize the loans.
Concerning the welfare of employees, Dr Ng’andu indicated that their welfare will be known once all depositors have been paid.
The finance Minister further underscored that the Bank of Zambia is proceeding with the winding up with institutions and the recovery of the debt owed to the microfinance and pay off the depositors.
In October last year (2019), the Bank of Zambia announced compulsory liquidation of the Zampost Microfinance Limited and Pan African Building Society.
In the statement issued by then BOZ Deputy Governor for operations Francis Chipimo, the two struggling institutions were found to be insolvent as defined by the Banking and Financial Services Act at the time of possession in July this year, (2020).