Maravi

(ZAMBIA WATCHDOG) Ex-Finance bank bosses face arrests as Bank pursues Post newspaper for K36b debt

COMMENT - They need to bring back The Post, immediately.

Ex-Finance bank bosses face arrests as Bank pursues Post newspaper for K36b debt
Monday, December 13, 2010, 8:34

Shareholders of Finance bank and former senior directors are likely to be arrested for raft of criminal offences, it has emerged. And the new Finance Bank team is set to recover a K36 billion overdraft by the Post newspaper.

Last week on Friday, The Bank of Zambia (BoZ ) took possession of operations of Finance Bank, saying the action was aimed at protecting the interests of depositors and other stakeholders.

BoZ has since appointed First Rand of South Africa to oversee the operations of the bank and specialists led by Leornard Hane as acting CEO on Saturday took over management of the Bank. There was jubilation from workers as the new team introduced itself at the head office.

The Watchdog has been informed that the immediate task of the new team is to recall outstanding loans, overdrafts and obligations to avoid impairments.

Insiders have disclosed that the Post Newspapers limited is one of the major debtors with an overdraft of K36 billion. The new team is said to be planning to move to recover this money immediately.

A report by Boz on Finance Bank inspection department exposed scandalous acts of fraud, theft and unsound banking practices by shareholders, directors and senior management.

Criminal charges are therefore to follow shareholders, former directors and senior management of the bank.

The charges will include theft, fraud and unsound banking practices and for breach of the the banking Act of Zambia.

Labels: CORRUPTION, FINANCE BANK, FIRST RAND GROUP, NATIONALISATION, RAJAN MAHTANI, THE POST

posted by MrK @ 2:21 PM