Maravi

Sale of FBZ will be reversed next week - Nawakwi

COMMENT - Another question is - what did First Rand do to get this bargain? Is any company in Zambia at risk of government seizure and sale to a foreign competitor, or just the ones suspected of financial ties to the political opposition? Or when it is election time?

Sale of FBZ will be reversed next week - Nawakwi
By Chiwoyu Sinyangwe
Thu 15 Sep. 2011, 13:55 CAT

FIRSTRAND is risking its money by buying Finance Bank Zambia Limited as the "haste" transaction will be reversed next week when a new government takes over, says Edith Nawakwi.

And Nawakwi has warned that some people close to the transaction may end up in prison for hastily selling FBZL even in the absence of a functioning Cabinet. FNB Zambia is a subsidiary of FirstRand, the bank whose top officials were appointed to manage FBZL after it was forcibly taken over by the Bank of Zambia (BoZ) last December.

FirstRand will operate all 34 branches and 16 agencies of Finance Bank, while the BoZ would continue to run its problematic assets, such as those which were currently under litigation, the central bank said.

Finance Bank has the largest rural network among Zambian commercial lenders.

Commenting on BoZ's decision to sell FBZL to First National Bank Zambia for K27 billion, Nawakwi said the transaction of the nature of FBZL only heightened locals' resentment of foreign capital and calls for nationalisation of foreign companies.

"This is complete mayhem and rubbish and I warn them that we will use uncle Robert Mugabe's tactics, and because of this, that is why you have leaders who are seen as anti-international investments," said Nawakwi, who is the president of Forum for Democracy and Development (FDD).

"No one is anti-international investments. We want the private sector to take root in this country. We want Zambians to participate fully for wealth creation of this country together."

Nawakwi wondered why government was so in a hurry to close the FBZL sale deal before elections next Tuesday.

"I take strong exception to selling an asset of this magnitude to a foreign company at the eve of an election. Caleb Fundanga should stop it because this is what makes people go to Chimbokaila Lusaka Central Prison," she said.

"What is the haste? It is just the civil service which is concluding this transaction? Since there is no Cabinet sitting, then who is making the decisions? Is it the one minister left there - President Rupiah Banda and this super minister of legal affairs ‘sir' George Kunda? You cannot behave in the manner they want to behave. FirstRand Bank should understand that this election is anybody's win. They should not comfort themselves to think that their friends are winning. They should understand that they are putting their money at risk."

Nawakwi said the whole transaction on FBZL, which was built with the toil and sweat of savings of ordinary Zambians, lacked prudence.

"They (FirstRand Bank) were the consultants; they cannot be the best bidders. We cannot ask a frog to empty its own pond," said Nawakwi.

"And the worst part of this transaction is that there is no government. Who has authorised this? I am so passionate about Zambian ownership and Zambian empowerments, for me I will reverse this sale."

Nawakwi, the sole female finance minister in Zambia's history, said if BoZ found that ex-FBZL shareholders led by Dr Rajan Mahtani had committed heinous banking offences, the bank should have been sold to Zambians.

"Even the Banda brothers President Banda's children are Zambians "if they do it legally, why not? We have super bankers here, Zambian ladies are managing these international banks, sure we can put a team together to manage Finance Bank on behalf of the Zambian savers and the wealth will remain here," said Nawakwi.

"You want to export our wealth to South Africa so that we continue printing our ballot papers in South Africa so that we continue going for cleaning our noses in South Africa… this is totally unacceptable, especially at the eve of an election. Tell all directors and everyone who is a shareholder in FirstRand Merchant Bank in no uncertain terms that this election is anybody's win and they should stop the transaction. And Caleb Fundanga, if he thinks he can conclude such a transaction without ministers in office, he should know that this is why many people end up in Chimbokaila."

Labels: EDITH NAWAKWI, FINANCE BANK, FIRST RAND GROUP, RAJAN MAHTANI

posted by MrK @ 6:11 PM