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(LUSAKATIMES) I have no problem with the probe of the sale of Zambia National Commercial Bank - Magande

I have no problem with the probe of the sale of Zambia National Commercial Bank -Magande
TIME PUBLISHED - Sunday, January 29, 2012, 2:34 pm

FORMER Minister of Finance and National Planning Ng’andu Magande has said that he has no problem with the probe of the sale of Zambia National Commercial Bank (ZANACO).

Mr Magande said he stands ready to be called upon to answer all queries, but quickly added that as Finance Minister he was not in charge of the actual selling of the bank. He said the President has constitutional powers to order a probe in matters he feels have been marred with irregularities.

President Sata on Friday directed Minister of Justice Sebastian Zulu to immediately probe the sale of Zanaco to establish whether procedure was followed when Dutch bankers Rabo acquired a 49 percent stake in 2007.

“I have no problem with the probe into the 49 per cent sale of Zanaco bank. But what should be understood is that Government acted on a decision that was made in 1998 by the Chiluba government. A decision which was in the best interest of the country looking at the state the banking institution was in,” Mr Magande said.

Mr Magande said in an interview that it was regrettable that the probe has started at a time President Mwanawasa is no more because he will not be there to answer any of the queries that might arise during the inquiry.

He said during the sale of the bank, only 49 per cent shares were sold to Rabo Bank while the rest were offered to Zambians, who have since acquired the shares.

“About 200 Zambians have shares in Zanaco and all the procedure into the sale of the bank shares was explained to Zambians, and to the Patriotic Front led by Mr Michal Sata and Dr. Guy Scott, who presented a petition to me.”

Mr. Magande said, “I explained the position Zanaco was in and the reason the government then decided to sell the institution (partially privatise).” He said he expects people who agreed to the decision to privatise Zanaco when called upon to appear before the commission to be truthful on the matters regarding the state of the bank at the time it was being sold to Dutch banker Rabo.

“The Levy Mwanawasa government acted on a decision that was made in 1998 by the Chiluba government because it was beneficial to the people just like the PF has continued with the MMD-initiated FISP (Fertiliser In-put Support Programme),” he said.

Zambia Union of Financial Institutions & Allied Workers (ZUFIAW) secretary General Joyce Nonde-Simukoko said the probes instituted by President Sata need support from all Zambians to clear suspicions regarding the sale of public institutions in the past.

Mrs Simukoko said people have the right to know how the former government sold public institutions because they are shareholders.

“People appearing on the commission must be able to tell the truth. We do not want people who will go there and tell things to please the President at Zambians; this is the only way to clear suspicions on how public institutions were sold so that the country can move forward.

“There is a lot of gossip and rumour mongering which creates tension in the country on how government operates,” she said. She appealed to the PF government to be transparent by disclosing how much they are spending on the commissions of inquiry and the constitution review because they are accountable to the Zambian people.

Sources within the bank said Rabo Bank bought a total of 49 per cent shares from government. Of the total, four per cent were sold to Zambia National Farmers Union (ZNFU). Government retained 25 per cent while 25 per cent were sold to the public.

And ZNFU executive secretary Ndambo Ndambo has welcomed the probe saying they are ready for the outcome of the investigations. ZNFU has shares in Zanaco. Mr Ndambo said the formation of the commission of inquiry to probe the sale of Zanaco is in the best interest of the nation.

“The President might have information regarding the sale of Zanaco which the public was not privy to during the sale in 2007. As shareholders, we welcome the move on behalf of the farming community,” he said.

[Zambia Daily Mail]

Labels: CORRUPTION, GUY SCOTT, JOYCE NONDE-SIMUKOKO, JOYCE SIMUKOKO, NG'ANDU MAGANDE, PRIVATISATION, RABOBANK, ZANACO

posted by MrK @ 4:39 PM