Maravi

(LUSAKATIMES) ZANACO evaluation fraudulent

ZANACO evaluation fraudulent
TIME PUBLISHED - Wednesday, February 1, 2012, 5:09 pm

The evaluation of ZANACO is said to have been fraudulent, irregular and massively undervalued. And the Net Asset Value methodology used to evaluate ZANACO was problematic and unprofessionally done.

These are the findings established by the Technical Committee on the privatization of ZANACO. Technical Committee Advisor to the Commission of Inquiry Michael Musonda said the Net Asset Value could only have been used if the bank was on the brink of liquidation.

Mr. Musonda submitted to the Sebastian Zulu chaired committee of inquiry that ZANACO had never been known to be on the brink of liquidation.

He told the committee that the method used by the evaluator, Price Waters Coopers, was illegal and unwarranted.

Mr. Musonda submitted that the most ideal value method which was the market valuation price of the 49 per cent stake in the bank could have been in the range of between US$18.4 million and US$23.4 million.

He said this was in contrast of the between US$8.1million and US$8.8 million established by the evaluator to be the market price.

Mr. Musonda submitted that the then ZAMBIA Privatization Agency-ZPA abrogated its mandate by allowing DFID to engage an evaluator of ZANACO assets.

He said that responsibility should have been solely handled by ZPA.

[ZNBC]

Labels: DFID, PRIVATISATION, ZANACO

posted by MrK @ 12:17 AM