Maravi

Govt orders ZNBS to resolve impasse

Govt orders ZNBS to resolve impasse
By Joseph Mwenda and Masuzyo Chakwe
Mon 14 May 2012, 10:50 CAT

THE Ministry of Finance has ordered ZNBS management to immediately resolve the impasse at the institution. And Lusaka businessman, Nashir Muhammad, who is implicated in the K350 million unpaid mortgage loan, says he has not refused to settle the claims to the institution.

Meanwhile, the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) has expressed disappointment with the abrupt resignation of top directors from the Zambia National Building Society.

Director for banking Emma Miti, finance director Robert Nkhata and director for mortgages Mwamba Chibuta tendered their resignations on Thursday while board secretary Christopher Besa did so two months ago. The directors resigned over alleged corruption at the institution. A management crisis has hit ZNBS following the resignation of the four directors, leaving only managing director Noriana Muneku in the top executive.

According to the sources, Muneku and the other directors crossed paths over a matter involving Muhammad, who was sued after failing to settle a K350 million mortgaged loan agreement and over the return of suspended human resource manager, Jean Chilikwela, among other issues.

Reacting to the resignations, finance deputy minister Miles Sampa said the ministry was aware of the situation at the institution and ordered that ZNBS should resolve the matter administratively.

"The matter that has been reported is an administrative issue and ZNBS must handle it and resolve it administratively," he said.

Sampa said the government was in the process of scrutinising names of the new ZNBS board which would be announced this month.

"Government is working on a new board which will be put in place before the end of this month," he said.

Sampa, however, declined to state when the findings of the ZNBS commission of inquiry would be made public.

"That report was presented to the President and the Ministry of Finance is not in a position to comment on it," said Sampa.

And Muhammad's lawyer, Chimbeka Sakala, said the case had not been withdrawn from court but that there were arguments regarding the amount of money being owed.

"As far as I am concerned, the case is still in court, when that loan was being acquired, there was collateral and that property was sold by ZNBS. Now the issue is that they (ZNBS) are still demanding for more money on grounds that the property that was sold did not cover the full amount that was given," said Sakala.

"My client has not refused to pay that money. In fact, we made a proposal that he pays the money in instalments because if the property was valued at the time the loan was granted and after some time they say it has less value, then it is not my fault."

Meanwhile, Chilikwela has written to unionised workers at the institution stating that she was well qualified to hold the position.

She stated that she holds a bachelors degree in economics and a post graduate diploma in human resource management.

"The attacks by the union to me appear more personal than administrative and are meant to ridicule me, dent my character and tarnish my reputation and integrity," stated Chilikwela.

And ZUFIAW president Cephas Mukuka stated that while respecting the right of every worker to resign from employment, the union was surprised that the directors chose to resign abruptly at a time when management, ZUFIAWU and union branch officials held a fruitful meeting last Wednesday at the Ministry of Information, Broadcasting and Labour to chart the way forward in ZNBS.

Mukuka stated that the union was not happy that the directors chose to resign in the manner they did instead of providing leadership.

"This is tantamount to holding the institution to ransom. True leadership is manifested by how one weathers the storm and not by jumping ship. We hope the reported resignations by the four directors are not calculated to cause panic at the institution. The tripartite consultative meetings we have been holding have been helpful in moving the process forward regarding industrial relations issues which employees wanted to be addressed," Mukuka stated.

He assured unionised members at ZNBS that ZUFIAW was closely engaged in discussions with management and the Ministry of Information and Labour to ensure industrial harmony at ZNBS.

Mukuka stated that clients of ZNBS were also assured that operations were going on smoothly and there was no reason to panic.

Labels: BANKING, ZNBS

posted by MrK @ 7:16 PM