Maravi

FFTUZ urges politicians to probe sale of Zanaco shares

FFTUZ urges politicians to probe sale of Zanaco shares
By Chiwoyu Sinyangwe
Tuesday October 21, 2008 [04:00]

FEDERATION of Free Trade Unions of Zambia (FFTUZ) has urged political parties in this month’s election to investigate the sale of 49 per cent Zanaco shares to Rabobank of Netherlands.

And a financial expert who declined to be named said there is need to establish whether the bank was sold at a give away price or the Zanaco Initial Price Offer (IPO) was over- priced.

FFTUZ national executive secretary Lyson Mando charged that Rabobank had bought Zanaco from the proceeds of floated shares.

Mando was reacting to last week’s story in The Post which established that the Zambian public would pay US $40 million (about K158 billion) for the 25.8 per cent shares offered in Zanaco while Rabobank bought the 49 per cent stake at only US $8.25 million (about K32.5 billion).

FFTUZ which was one of the ardent opponents to the privatisation of Zanaco also said the revelation was a clear manifestation that Rabobank had benefited from the privatisation of the bank at the expense of the Zambian workers and tax payers.

“The profit by the bank implies that Zanaco has been bought from the proceeds of the floated shares,” observed FFTUZ in a statement released last Friday.

The union further added that the current financial rescue plans by the Western governments which were based on using public funds to save private companies vindicated FFTUZ’s call for the protection of national assets by the government.

“The United States and British governments have now nationalised private banks to protect public interest. Africa, which has no control over private capital will be victims of the credit crunch,” Mando stated.

“As the presidential elections campaigns are taking place in Zambia, we urge political parties to evaluate and investigate the privatisation of Zanaco and other public companies and assure the Zambians how they will manage the financial shocks arising from the credit crunch.”

And a financial expert said: “Either the government sold the bank for a song or we the Zambians are being screwed for paying too much.”

Zanaco was sold to Rabobank in late 2005 amid public opposition. At the time of privatisation, the bank had 1,100 employees and assets worth US $384 million.

Labels: FFTUZ, ZANACO

posted by MrK @ 4:24 AM