Maravi

Sata seeks probe of Rupiah’s collapsed bank

Sata seeks probe of Rupiah’s collapsed bank
Written by Patson Chilemba
Saturday, February 28, 2009 8:47:00 AM

PATRIOTIC Front (PF) president Michael Sata yesterday asked the police, ACC and DEC to investigate why African Commercial Bank (ACB), which was under the directorship of President Rupiah Banda collapsed.

In a letter dated February 27, 2009 and addressed to the Inspector General of Police, the director general for Anti-Corruption Commission (ACC) and the director general for Drug Enforcement Commission (DEC), Sata commended the three investigative wings for having started investigations into the financial irregularities of Zambian Airways to clear the airline on the issues.

"This is the first time an action of this nature is taking place in the last 45 years of Zambia's existence, now that you have constituted a body to investigate, as a member of the public, I wish you to include the following companies which collapsed in similar circumstances like Zambian Airways and an individual who was reported by the Auditor General," Sata stated.

"My complaint is as follows: (1) African Commercial Bank LTD. The above Bank was established and licensed by the Bank of Zambia to operate retail and wholesale Banking. The Bank attracted a large number of government, parastatal, private companies and individuals who deposited money in the said bank. Because of internal indiscipline, like internal borrowing by directors, the bank collapsed, please investigate the illegal dealings."

On Thursday, Sata challenged President Banda to explain why ACB collapsed under his directorship and ownership with many people's money.

President Banda is said to have used his position as ACB director to overdraw his account with the bank by huge amounts. This prompted the Bank of Zambia (BoZ) to question ACB on the type of banking they were practicing for allowing President Banda to overdraw his account in the manner he did.

It is also said part of the reasons as to why ACB went under was inside borrowing or inside trading.

And Sata also asked the investigative wings to probe Minestone Limited. He stated that Minestone was awarded a contract by the Ministry of Finance to repair or rehabilitate Society House when it was gutted by fire.

Sata stated that Society House has never been repaired despite Minestone being paid several millions of kwacha by the state.

Sata further asked the security wings to investigate George Chulumanda because the Auditor General reported several millions of kwacha, which had gone unaccounted for in Mozambique.

The 2007 Auditor General's report highlighted several irregularities in Zambia's foreign missions including Mozambique. The former envoy to that country, Chulumanda acknowledged financial oversights but denied any misappropriation of funds at the Maputo mission. But former deputy high commissioner Edwin Hatembo said he was ready to produce evidence of financial irregularities.

Labels: AFRICAN COMMERCIAL BANK LTD, BANKING, RUPIAH BANDA, SATA

posted by MrK @ 8:47 AM