Maravi

Sata assures Finance Bank shareholders government support

Sata assures Finance Bank shareholders government support
By Masuzyo Chakwe
Thu 24 Nov. 2011, 13:59 CAT

PRESIDENT Michael Sata says what happened between Finance Bank and former president Rupiah Banda is now history.

During a closed-door meeting on Tuesday at State House with Finance Bank shareholders, representatives from the Central Bank and government officials who included finance minister Alexander Chikwanda, President Sata said the Bank of Zambia had been like a "jumping castle" for a long time.

He assured Credit Suisse, who are shareholders in Finance Bank Zambia Limited, that the government would give them the necessary confidence and support.

"What happened between yourselves and my predecessor is now history. The Bank of Zambia has been like a ‘jumping castle' for a long time. This has to change because the reserve bank must command the confidence of all market players without yielding to political pressure," he said.

This is according to a statement issued by special assistant to the President for press and public relations George Chellah.

President Sata urged the banking sector to expand their investments and services to rural areas.

He said the government would only support banks that invest and service the rural parts of the country as well because Lusaka was not Zambia.

"No doubt, we need service to the people in rural areas. Our people in rural areas equally deserve reliable banking services," said President Sata.

The Rupiah Banda government through the Bank of Zambia took possession of Finance Bank for alleged unsafe banking practices and offered to sell it to FirstRand Bank of South Africa for K27 billion.

But President Sata on October 3, 2011 reversed the sale of Finance Bank and gave it back to Dr Rajani Mahtani and other shareholders.

President Sata said there was no documentation on the sale of Finance Bank to South Africa's FirstRand that bought the institution for only K27 billion in September.

"I have been doing a search on the so-called sale of Finance Bank, there isn't even any document for sale. Therefore, I am instructing Ministry of Finance to take the bank back to the owners of the bank, immediately. The K30 billion which was siphoned from government, Finance Bank, we want a report about that," said President Sata.

Labels: BOZ, FINANCE BANK, GEORGE CHELLAH, MICHAEL SATA

posted by MrK @ 3:21 PM