THE Bank of Zambia (BoZ) has terminated all shareholders’ interests in Finance Bank Zambia Limited (FBZ) including the 40 percent stake owned by Credit Suisse (Netherlands) B.V.
According to a Government gazette No 815 of 2010, posted on the BoZ website, the bank says the acquisition of 40 percent stake by Credit Suisse in FBZ, appears to be a lending transaction because of the underlying agreements that were not disclosed to the bank.
The central bank says among other things, the agreements guaranteed a return to Credit Suisse on the investment.
The gazette states that other shareholders apart from Credit Suisse Investment (Nederland) B.V whose contracts were terminated are Finsbury Investment Limited of Ndola, Clarkwell Limited of Tortilla and British Virgin Islands.
Others are Job Albert Samuel of Canada, Estate of the late Pat BwalyaPuta of Ndola and Patrick Chamunda.
“It is hereby notified for public information that the BoZ in exercising powers contained in section 81(i) (c)( i) and (ii) of the Banking and Financial Services Act (BSFA) CAP 387(“ BFASA”) did on the 10 th day of December, 2010 take possession of FBZ with effect from 16:00 hours.
“It is further notified that in exercise of the powers conferred upon the BoZ by section 84 A (g) of the BFSA, and pursuant to the Resolution and Order of the BoZ board passed on December 10, 2010, the bank did on the 22 December 2010 terminate with immediate effect the shareholder interest in FBZ of all and each of the listed shareholders,” it read in part.
And BoZ has started the process of evaluating firms that showed interest to acquire FBZ after the process of the bank’s sale began last month.
BoZ head of public relations Kanguya Mayondi said the public will soon be informed on the outcome after the evaluation process has been completed.
[Zambia Daily Mail]
This is theft of a bank by government. how shameful
Every one just with draw your cash from there so we see what they will do with it my only biggist pity is for the employees who have been caught up in the cross fire!
The Post will now dance ndombolo with the monies they owe Finance Bank…shala wambe ta.
This is very news worthy but it is a pity very few people read such type of news. Most people are interested in ‘dirty politics of Sata, the Post, HH and MMD’. How I wish we could comment more on these issues than petty ones on Politics. I really like my country and I love all Zambians
yangu Ka k60 kandi ,im rushing there to withdraw so that i can buy bread for for my kids for 12 days
another political fundraising venture for MMD..
VOTE SATA….DONCHI KUBEBA!!!!!!!!!!!!!!
Banking of vindicative.
all I can say to my fellow citizens is don’t bother setting up and investing in a Bank in your own country. The political risk and risk of expropriation by the state through their agent BOZ is too high. and you will not get a dime in compensation. We’ll just wait for our time in future when the wasted generation in Zambia’s history (those over 50 yrs of age) are gone and history. we’ll reform laws that would enable at least some sort of protectiont to a share holder and thos ethat will not allow take over on frivolous unqualifying grounds. Ati unsound management practices.
If BOZ thinks that they will get away with this theft, they are mistaken!
The Swiss Bank will get their money through international insurance. The problem is that Zambia will now become a high risk country to invest in. Do not steal, just let the bank be liquidated if it is not viable. Why have you hand picked FNB to buy? Is it part of MMD fund raising venture for 2011 elections? I am sure Zambia will taken to neutral international court where they will be forced to pay huge amounts of money. George Kunda made Zambians loose and we are going the same way
I hope all the commentators understand the BFSA Law and the situation this Bank was in. Lets us read technical arguements rather than politicising all and sundry.
No 9 and 10. Do you understand Zambia’s banking laws? Do not expose you ignorance here….by turning everything into politics
What kind of shareholding did Credit Suisse have in Finance Bank then? Preference shares rather than ordinary shares? That’s the only thing I can see leading to a liability. It would be nice to see the latest FBZ annual report, but the download from the bank’s website is soooooooo slow that I gave up trying.
This LusakaTimes forum is interesting, I a Zambian Like the President stumbles & falls overseas where you all think they a smarter then you we get 100 comeents in less thatn an hour. When there’s issues like the above story we get 13 comments in 24hrs. You are all DULL arnchair critics who have no ptide for your country, shame on you all
So the high profile swiss representative who were going to scare BOZ as reported by the POST did nothing? yangu!
So BOZ can not be scared of peoples skin colour, like the POST do. Thats the way to go, viva BOZ viva
BOZ has done very well. The extent of insider borrowing and money laundering that Mahtani was engaged in was going to lead to Zambians suffering the way that investors in USA, Israel and other countries suffered under Bernard Maddoff. Until the very last days there are those who were so naive that they were standing by Bernard Maddoff. Do the bloggers supporting Mahtani even know about the Bernard Madoff story??
#14 “I take my hat off”, for your tremendous effort in trying to express yourself on this fora, inspite of all the mispellings ,one can just make out what you are trying to say. Well it might be that we are dull or it is that we are actually more intelligent than you think, in that we try to comment with the right facts, this story carries minimal info & direct evidence justifying & legalising this take over.
# 17 ba “tweedledum”, please save your breathe, we know the role Bernies played in the GFC, & the rich blokes that he swindled – you have to take your hat-off to him for having pulled it off for so long, coz without GFC, he would still be masked!!
no. 14 spot on These are issues that deserve attention
One thing we should all be worried about is how the matter is being handled. I do not have facts about Finance bank dealings hence will avoid commenting based on hearsay. My concerned is the way forward. BOZ is said to be busy evaluating companies which have expressed interest in buying Finance bank but the question is did they advertise for companies to express interest? Is the right procedure being followed to dispose off this private bank?
BOZ, for transparency’s sake please publish the names of the firms that have expressed interest to acquire FBZ.During the sale of ZAMTEL, ZDA had announced all the firms that had expressed interest in acquiring the 75% stake in the firm.I have always known that Credit Swiss did not acquire 40% stake in FBZ.This is so because they were referred to as advisors to the board. How can one with 40% stake be referred to as such. This was Mahtani’s way of concealing his more than 25% shares by purporting that Credit Swiss had acquired that stake. I however pity the Estate of the late Pat Puta, his children should not have accepted to be joined to the litigation initiated by Mahtani.
Hello, Neat post. There is an issue along with your web site in internet explorer, might check this? IE still is the market leader and a big component of folks will omit your magnificent writing because of this problem.
Comments are closed.