Magande questions Sata, Rabobank MD meeting
Magande questions Sata, Rabobank MD meetingBy Speedwell Mupuchi
Tuesday March 06, 2007 [02:00]
FINANCE minister Ng'andu Magande has wondered why Netherlands’ Rabobank went to opposition Patriotic Front to discuss their investment in a country where there is a popularly elected government. And chief government spokesperson Vernon Mwaanga has explained that the share price for Zambia National Commercial Bank (ZNCB) shares to Rabobank was left flexible owing to its indebtedness.
Asked to comment on Rabobank officials' statement during their meeting with Patriotic Front president Michael Sata last Thursday that government had not indicated to them how much the shares in ZNCB would cost, Magande also wondered why everyone wanted to talk about the bank. "Everyone is involved in the issue of the Rabobank, I don't know for what purpose. That's what the President (Mwanawasa) was talking about, choose a moment for everything, we are talking about youths now. So why do you want to talk about Rabobank now?" Magande asked. Reminded that Rabobank was a hot cake (subject), Magande wondered how it could be a hot cake and that if it was a hot and very small cake, who would be satisfied by any explanation. "We explained to you we have not finalised all the details and the PS for commerce even told you that we are going to do a re-evaluation. Now you are saying Rabobank haven't told you what to pay," Magande said.
Magande said Zambians should continue to debate the issue and that no one should have a final voice. "So now Zambians are very happy that a foreign investor who wants to put money in the country can be called by an opposition party and be told I don't like this, I don't like this, you go away, you are happy about that?" wondered Magande who throughout the interview was unwilling to discuss the issue.
Asked from government's stand point, the implication of Rabobank officials' going to discuss the issue of sale of ZNCB with Patriotic Front president Michael Sata, Magande wondered why Rabobank officials were not asked the question. "I just read it in the papers you wrote, why didn't you ask them to say what does this mean? You have gone to an opposition party in a country where you have a government, and a popularly elected government, you go to the opposition to talk about your plans to invest in Zambia, why didn't you ask them? Magande asked.
And Mwaanga said government did not state the ZNCB share price to Rabobank because there was to be a re-evaluation. He said the re-evaluation was on the shares and not the actual sale. Mwaanga explained that the bank was still in a poor state and government thought of completing negotiations of the sale first. "But in so far as the share price is concerned, we had to re-negotiate that because the bank is in better shape now than it was," Mwaanga said. "Initially when they negotiated the sale, the bank was very heavily indebted. For example the bank was carrying a very big debt for ZNOC (Zambia National Oil Company) and they were also carrying a Ramcoz debt which was still in their books." Mwaanga said the debts made the bank look really bad and vulnerable. "But now that government took over those debts, the accounts of Zanaco were cleaned up and they became a lot more attractive than they were," he said.
Pressed on the share price, Mwaanga said the issue was left flexible depending on whether government would take over the debts. Mwaanga said the Bank of Zambia, which was supervising authority of the commercial banks, made it very clear that ZNCB needed recapitalisation without which it would collapse. "That is how the issue of the sale of the shares still went ahead. In fact they (Bank of Zambia) went out of their way to really look after interest of Zanaco outside the normal supervisory framework of commercial banks. If it was just an ordinary bank they would have let it to collapse," Mwaanga said.
He said renegotiations had been going on with participation of Rabobank and that government expects the share price to increase. Asked to clarify the increase, Mwaanga said: "We shouldn't go into that issue. That issue is about to be concluded and that is why you have noticed they have not taken over management of the bank". He said the issues would be resolved quickly. "I have seen the report myself and I think they will be resolved very, very quickly and they will be resolved a lot better than would have been the case if the bank would have been sold with the liabilities it was carrying from ZNOC and RAMCOZ," said Mwaanga.
Labels: MAGANDE, RABOBANK, SATA
posted by MrK @ 5:44 AM
2 Comments:
mr Magande did not know sata had a meeting with the RABOS because the inteligence is too busy persecuting people on personl grounds sending un undercover to catch the corrupters at the lands ministry would have yield more than closing the place for business and losing millions in the process in working hours because am sure the workers who are now on some leave are being paid.
ZANACO is not a small issue!nor small cake either.
ZANACO is a peoples bank
just like ZCCM was.
what happend to ZCCM whilst we were confiding in MMD.
are the loans mwaanga is talking about real,or is it the money the goverment plucks out of zanaco at will.
" sending un undercover to catch the corrupters at the lands ministry would have yield more than closing the place for business and losing millions in the process in working hours because am sure the workers who are now on some leave are being paid. "
I completely agree. Or someone should even just send an investigative reporter around.
The Post could have a huge job investigating ministry corruption.
There should be complete transparancy with regards to ZANACO, ZCCM, etc. because this is in everyone's interest.
Where are the parliamentary committees? This is what the UPND and the PF should be doing.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home