Maravi

Chitala urges re-negotiation of Rabobank's stake in Zanaco

Chitala urges re-negotiation of Rabobank's stake in Zanaco
By Kombe Chimpinde
Mon 20 Feb. 2012, 12:01 CAT

SEIZING Rabobank's 49 per cent stake in Zanaco will be injurious to the country's financial sector, says Dr Mbita Chita.

Commenting on Dr Lubinda Habazooka's recent observation that the reversal of the sale of 49 per cent shares of Zanaco Bank to Rabobank of Netherlands would be detrimental to the country's economic and financial stability, Dr Chitala, who is an economist, said the government must instead re-negotiate various conditions with the bank in view of the various irregularities cited through submissions presented before the Sebastian Zulu-led Commission of Inquiry that sat to probe the sale.

"When we (Zambians) investigated Zanaco, we found that there was a problem in the transaction. Instead of the Ministry of Finance being at the centre, they transferred the process to the Ministry of Commerce and Industry, while the permanent secretary there became the chairman of the board," Dr Chitala said in an interview.

"So the evaluation of the company also was faulty, where instead of using market criteria, they used a net value of 1983 which was contrary to the Zambia Public Procurement Agency (ZPPA) Act, which stipulates that any evaluation of any company must be based on the market value."

He, however, said those that perpetrated irregularities during the sale of Zanaco, which was sold at U$8.25 million, must not be let off the hook.

"Let those who broke the law be challenged to explain why they did it," said Dr Chitala.

Labels: MBITA CHITALA, PRIVATISATION, RABOBANK, ZANACO

posted by MrK @ 1:46 PM