Maravi

(LUSAKATIMES) Mahtani gets back Finance Bank

Mahtani gets back Finance Bank
TIME PUBLISHED - Monday, October 3, 2011, 3:17 pm

Republican President Michael Sata has instructed Finance minister Alexander Chikwanda to with immediate effect return Finance Bank Zambia Limited to the rightful owners.

Finance bank had been sold to First Rand Bank of South Africa by the previous government for alleged breach of the Banking and Financial services Act
President Sata says after carrying out a research, he has noted that they are no proper documents for the sale of Finance bank.

The president was speaking at State house this morning during the swearing in ceremony of Amos Malupenga as new Information and Broadcasting services permanent secretary.

The Bank of Zambia, last year, seized Finance Bank from its shareholders for violating the law through unsound practices, including insider borrowing.

The Central Bank last month announced the sale of Finance bank to South Africa’s First Rand at a cost of $5.4 million, a move that raised a lot of concerns from various stakeholders.

And former Finance bank chairman Rajan Mahtani says the truth on the sale of the bank has finally prevailed.

Dr. Mahtani says Zambian investment has been restored to Zambians adding that at least a thousand jobs that were at stake have been secured.

Speaking to journalist at State house this morning, Dr. Mahtani said the sale of the bank was politically motivated by the previous MMD government for reasons known to themselves.

[QFM]

Labels: FINANCE BANK, MICHAEL SATA, RAJAN MAHTANI

posted by MrK @ 2:27 PM