(STICKY) (LUSAKATIMES) Barclays accused of promoting tax havens in Africa
Time Posted: November 21, 2013 2:49 pm
Barclays is using its “Offshore Corporate” department to market a range of tax havens to big businesses in Africa including promoting the low tax levels that are available, a new ActionAid report has claimed.
ActionAid Tax Justice Adviser Toby Quantrill said every year developing countries lose billions of pounds of vitally needed revenue because of tax avoidance by big companies using tax havens.
“When companies avoid tax, they drain billions of pounds of revenues out of developing countries that could be used to help build schools and hospitals and lift people out of poverty.
“Now Barclays customers have sent a stark message to their bank. A clear majority are saying it is unacceptable for their bank to be providing the kind of services that can help businesses reduce their tax payments.”
Earlier this year Barclays Chief Executive Antony Jenkins promised that Barclays was “changing” following a range of scandals that have damaged the bank’s image, including allegations of corporate tax avoidance using tax havens.
But ActionAid’s report called “Time to Clean Up: How Barclays promotes the use of tax havens in Africa shows that in September Barclays Offshore Corporate increased the number of tax havens it was promoting, to include the key African tax haven of Mauritius.
Mauritius has a very low effective tax rate and its network of tax treaties with other African countries means that large companies can use it as a key location to avoid tax.
ActionAid is now demanding that Barclays honours its commitment to change and specifically to close down its Offshore Corporate department, which it uses to promote tax havens to big businesses in Africa.
Tax avoidance and the kind of practices that are frequently used in tax havens have been strongly condemned by former UN Secretary General Kofi Annan, who stated that it was “unconscionable” that companies were aggressively avoiding tax “while millions of Africans go without adequate nutrition, health and education.”
According to the Organisation for Economic Co-operation and Development, tax havens cost developing countries just under three times more than they receive in aid every year.
“Tax revenue is vital to helping boost investment in basic services in some of the poorest parts of the world. But for as long as major companies like Barclays promote tax havens, then there will always be businesses who avoid tax. We are asking Barclays to do better than that. We want them to show that when they say they are “changing” – they actually mean it,” said Mr Quantrill.
A recent report from the high level Africa Progress Panel estimates that lost taxation is costing sub-Saharan Africa US$63 billion every year.
Labels: BARCLAYS BANK, TAX EVASION
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Barclays clients complain about debit anomalies
By Henry Sinyangwe
Thu 27 Dec. 2012, 12:20 CAT
SOME Barclays Bank clients have complained of having their accounts over-debited whenever money is being recovered for unprocessed Visa debit payments. But Barclays Bank Zambia has apologised to its customers for the inconvenience.
Several customers expressed concern that the bank was not immediately deducting money from their accounts each time they made electronic transactions such as swiping.
The clients further complained that some of the transactions that took place many months ago were being deducted this month without any notice.
They also criticised what they termed "over-deducting and unnecessary bank charges".
"We are being inconvenienced because there are so many anomalies," said a client, who refused to be named.
They also wondered why the bank only debited their accounts months after transactions had taken place as some of them did not have enough money in their accounts.
But Barclays Bank Zambia says the debit problem was caused by its remedial action to recover the unprocessed Visa debit payments from customers who made transactions using Visa electron.
Reacting to the customers' concerns in a joint statement yesterday, head of customer service Agatha Yowela and communications manager Banji Gwaba Lufungulo assured customers that the bank remained committed to resolving any concerns that they may have regarding the recent debiting of their accounts with unprocessed Visa debit payments.
"Barclays Bank Zambia Plc wishes to apologise to our esteemed customers who have been inconvenienced during this recovery process. We further wish to advise customers that the Bank will continue to keep its communication channels open with them should they require clarity on the matter," they stated.
Labels: BANKING, BARCLAYS BANK, CORRUPTION
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Barclays clients complain about debit anomalies
By Henry Sinyangwe
Thu 27 Dec. 2012, 12:20 CAT
SOME Barclays Bank clients have complained of having their accounts over-debited whenever money is being recovered for unprocessed Visa debit payments.
But Barclays Bank Zambia has apologised to its customers for the inconvenience. Several customers expressed concern that the bank was not immediately deducting money from their accounts each time they made electronic transactions such as swiping.
The clients further complained that some of the transactions that took place many months ago were being deducted this month without any notice.
They also criticised what they termed "over-deducting and unnecessary bank charges".
"We are being inconvenienced because there are so many anomalies," said a client, who refused to be named.
They also wondered why the bank only debited their accounts months after transactions had taken place as some of them did not have enough money in their accounts.
But Barclays Bank Zambia says the debit problem was caused by its remedial action to recover the unprocessed Visa debit payments from customers who made transactions using Visa electron.
Reacting to the customers' concerns in a joint statement yesterday, head of customer service Agatha Yowela and communications manager Banji Gwaba Lufungulo assured customers that the bank remained committed to resolving any concerns that they may have regarding the recent debiting of their accounts with unprocessed Visa debit payments.
"Barclays Bank Zambia Plc wishes to apologise to our esteemed customers who have been inconvenienced during this recovery process. We further wish to advise customers that the Bank will continue to keep its communication channels open with them should they require clarity on the matter," they stated.
Labels: BANKING, BARCLAYS BANK
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Banks warned over treasury bills
05/11/2012 00:00:00
by Bloomberg
FINANCE Minister Tendai Biti said lenders including units of Barclays and Standard Chartered have a last chance to support the central bank’s Treasury bill sales or they will be compelled to buy negotiable certificates of deposit.
The Harare-based Reserve Bank of Zimbabwe will on Nov. 6 offer $30 million worth of 91-day Treasury bills after after two failed offerings and one partially successful sale last month. The sales are the first since 2008, shortly before the country abandoned its currency in favour of the dollar in a bid to curb an inflation rate that had risen to 500 billion percent, according to the International Monetary Fund.
Biti and the central bank are trying to kick-start the country’s capital markets.
“I am giving the banks sector the last chance to fully support the Treasury bills,” Biti said in a in Victoria Falls. “If they don’t support it, I will issue NCDs and that’s it.”
Biti and the central bank are trying to kick-start the country’s capital markets after a decade-long recession ended in 2009 after the 15-nation Southern African Democratic Community negotiated a settlement that ended a political dispute.
A coalition government between President Robert Mugabe’s Zimbabwe African National Union Patriotic Front (Zanu PF) and the Movement for Democratic Change of Prime Minister Morgan Tsvangirai was then formed.
On October 26, the central bank offered $15 million of the securities of which $9.9 million were sold at an average yield of 8.51 percent. The bank rejected all bids at attempted sales on October 4 and October 24.
Barclays, Nedbank
The plan to restart the bill sales was announced in July by Gideon Gono, the central bank governor. Zimbabwe lacks a benchmark interest rate. The weighted average lending rate for private banks ranged from 14 percent to 20 percent in the four months through July 31, Gono said in a midyear monetary policy statement.
Barclays is the biggest lender by market value on the Zimbabwe Stock Exchange with a capitalisation of $62 million while units of London-based Standard Chartered as well as Standard Bank and Nedbank, both based in Johannesburg, operate in the country. CBZ Holdings is the biggest locally owned bank.
Biti is also in negotiations to secure funding to recapitalize the country’s banks and plans further regulation of the industry.
In September, Global Emerging Markets, a $3.4 billion investment comapny with offices in London and New York, said it had proposed setting up a $1 billion fund in a venture with the finance ministry to fund banks, especially the smaller, locally owned lenders.
“There are discussions with parties, but it’s not anywhere near the $1 billion,” Biti said. “I can’t tell you the figure but, what I can say is that there are various negotiations taking place.”
Alongside any recapitalisation, the Finance Ministry plans to appoint a banking ombudsman.
“We have come up with comprehensive amendments to the banking sector,” he said. “We are introducing a banking ombudsman to ensure that the consumer is protected and the amendments will also ensure mandatory stress tests. It’s a plethora of amendments that are coming.”
No leadership
Biti is also in talks with South Africa’s Finance Minister Pravin Gordhan in a bid to secure funding to help accelerate the country’s economic recovery.
“The South African government is firmly committed to assist us. I can’t put a figure on how much they would give us,” Biti said. “I spoke to Pravin Gordhan about two days ago and I am optimistic it would come through.”
On November 2, Biti cut his forecast for Zimbabwe’s economic growth this year to 4 percent from an earlier estimate of 5.6 percent, citing a smaller-than-expected crop harvest.
Zimbabwe’s recession was triggered by the start of a program of seizing of white-owned commercial farms in 2000. That slashed exports of crops including tobacco and roses and turned the country into a corn importer.
A new program compelling mining companies to cede 51 percent of their assets to black Zimbabweans has hindered investment in the world’s second- biggest platinum reserves.
“There are no signs that we are providing sufficient leadership,” Biti said. “You can’t continue doing things over and over again. There has to be a paradigm shift or else we will continue limping.”
Government revenue won’t be able to meet annual budget requirements of $3.4 billion to $3.8 billion, he said.
‘There is so much demand against the state and its not possible to meet the demands,’’ he said. The economy is a crumb against developmental needs of the country.’’
Labels: BANKING, BARCLAYS BANK, NEDBANK, TENDAI BITI, TREASURY (ZW)
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Indigenisation: Barclays caves in
08/06/2012 00:00:00
by Tawanda Karombo I Business Day
THE Zimbabwe division of international banking group Barclays has bowed to increased pressure from Empowerment Minister Saviour Kasukuwere, agreeing to start implementation of the contentious indigenisation policy.
Barclays Bank Zimbabwe MD George Guvamatanga and Kasukuwere met earlier this week and agreed on the implementation of the bank’s compliance plan, starting with the transfer of a significant portion of shares to employees.
The contentious policy, which is being spearheaded by Zanu PF ahead of polls likely this year or early next year, seeks to compel foreign firms to cede majority stakes to black Zimbabweans.
Guvamatanga could not divulge details of the agreement reached utnder pressure to comply with the empowerment policy.
But South Africa's Business Day newspaper reported Friday that Barclays had agreed to "empower its employees" as part of the process to comply with the legislation.
"Barclays can confirm that the meeting took place but the contens remain private and confidential as there are still further discussions," said Guvamatanga.
He said that the meeting was only one of a series of engagements between Barclays Zimbabwe and the empowerment ministry "regarding the implementation" of the law.
A corporate executive with knowledge of developments around Barclays Zimbabwe’s proposed indigenisation compliance plan said Kasukuwere insisted during the meeting that Guvamatanga commit to empowering the bank’s employees before other aspects of the compliance plan were finalised.
"There are still some areas of disagreement but this week the two (Kasukuwere and Guvamatanga) agreed that Barclays should roll out its employee empowerment scheme faster and move onto the other areas that are yet to be agreed on.
"What is emerging from Kasukuwere’s approach with the banks, however, is different from the approach he used with the mines; he seems to be a bit cautious and careful," said the bank executive.
Kasukuwere said the meeting with Guvamatanga on Tuesday "had been fruitful" from the government’s perspective.
"In general we agreed to reorganise the ownership structure of the bank…. Employees will benefit significantly," Kasukuwere said.
This comes against the backdrop of differences between Kasukuwere and central bank governor Gideon Gono over indigenisation of the banking sector. Gono last week warned Kasukuwere "not to come near my banks".
Both are from President Robert Mugabe’s Zanu PF party, and political observers said that the war of words that erupted between them highlighted the sharp policy inconsistencies and divisions in the party, despite its efforts to show unanimity on the matter.
Gono favours a "gradual approach" to indigenisation, and insisted this week that the Reserve Bank of Zimbabwe’s stance would remain so, to avoid "untold consequences".
Johannes Kwangwari, an economic analyst, said that the move by the government to target banks for indigenisation "spells disaster for the sector".
Labels: BARCLAYS BANK, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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Kasukuwere targets Barclays
04/06/2012 00:00:00
by Business Reporter
EMPOWERMENT Minister Saviour Kasukuwere has summoned Barclays Bank officials to explain the ownership structure of the bank as the government empowerment drive targets the financial services sector.
Kasukuwere said he would meet Barclays’ managing director George Guvamatanga Monday to discuss the bank’s compliance with Zimbabwe’s empowerment legislation.
“I will be meeting Guvamatanga on Monday to discuss the status at Barclays,” Kasukuwere told The Herald.
“(Guvamatanga) has often said that Barclays is already indigenised (and) I will be very keen to understand what he means by that.
“There is also the issue about the other foreign-owned banks, and as the BAZ president, I am sure he can give us some insight into the status of his colleagues.”
Barclays, Standard Chartered and the South Africa-controlled Stanbic dominate the country’s banking sector and Kusukuwere said he was now focusing on ensuring they comply with the country’s empowerment legislation.
“My ministry is now focusing on the financial services sector and we are going to be closely evaluating the proposals that they have tabled in compliance with the indigenisation regulations,” he said.
“Our expectations are that this should be done in line with the aspirations of the workers and other indigenous investors.”
Under the country’s economic empowerment programme, foreign companies are now required by law to transfer control of at least 51 percent of their Zimbabwe operations to locals.
But central bank chief, Gideon Gono has warned against applying the legislation to the country’s banking sector. Gono repeated the warning at an empowerment conference in Harare last Friday.
"The money that is in the banks does not belong to Gono, or (George) Guvamatanga (Managing Director) of Barclays Bank here," he said.
"It belongs to depositors. It would be a great act of irresponsibility not to respect depositors' money."
Labels: BARCLAYS BANK, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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Barclays to revamp Internet banking
By Gift Chanda
Wed 25 Jan. 2012, 13:58 CAT
BARCLAYS Bank Zambia Plc says it will invest more than K12 billion (US$2.5 million) in the next five years to revamp its Internet banking service which will be widely accessible to its customers for free.
Unveiling the bank's upgraded Internet banking service in Lusaka yesterday, Barclays Bank Zambia Plc managing director Saviour Chibiya said the bank was committed to expanding its alternate channels in a quest to offer customers world-class products, services and choice.
"To make secure Internet banking accessible for free to all our customers, we will be investing over K12 billion in the next five years," Chibiya said.
He said over the past year, the bank had introduced electronic services that had transformed customers' banking experience.
These include the SMS alert which allows customers to know of transactions on their accounts and the e-statements that ensures improved delivery of customer statements and enabling Card and PIN on Points of Sale machines to enhance security.
"In addition, Barclays Bank Zambia recently launched the Platinum Card which enables customers to transact online and make travel bookings for hotels and car hire among other features," he said.
Until recently, the bank was offering Internet banking service to a small base of its customers.
"We remain committed to investing in innovative digital banking offerings to ensure that our customers enjoy a rich digital experience that integrates their banking needs with their lifestyle. We will continue to respond to our customers' feedback so that we can continue to serve them in a way that they desire," Chibiya added.
He said with the K12 billion worth investment, all Barclays customers would have access to free and secure Internet banking, which offers them the flexibility to access their personal accounts at any time regardless of the bank's opening hours.
"We are committed to pioneering superior, quality and affordable banking services to the Zambian people. We want to ensure that our customers are given a choice in how they access our services in line with their lifestyle needs and preferences. We are rewarding our customers with great benefits," he said.
"With the Internet Banking service, Barclays customers now have the choice to make financial transactions on the Internet using one of the most secured system which guarantees the safety of funds and transaction details."
He explained that key benefits of the upgraded Internet banking service to Barclays customers include free inter-account transfers, account balance enquiries, access to loan accounts information and mini statements.
Chibiyi further said all transactions on Internet banking would be free apart from funds transfer to other banks.
He said fund transfers to other banks within Zambia would be attracting a minimal fee of K5,000 while international funds transfers would attract the normal Society for Worldwide Interbank Financial Telecommunication (SWIFT) charges.
Labels: BARCLAYS BANK, SAVIOUR CHIBIYA
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Zim rejects Barclays, Stanchart offers
12/12/2011 00:00:00
by Gilbert Nyambabvu
THE government has told British banks, Barclays Plc and Standard Chartered Plc to stump-up more after rejecting as inadequate their plans to cede 10 percent stakes as part of efforts to comply with the country’s empowerment laws. Empowerment Minister, Saviour Kasukuwere said Monday the offers by the two UK banks were "paltry", adding discussions would however continue with thetwo banks.
"We have said to them the fact that you are giving us carrots does not change the law," he said. "If they had that (10 percent) proposal some 5-7 years ago we shouldn't be talking about indigenisation."
South Africa's Standard Bank Group presented a more "comprehensive plan" for its Stanbic Zimbabwe operation which the government was reviewing, Kasukuwere said.
President Robert Mugabe's drive to force foreign companies to surrender at least 51 percent shares to locals has unnerved overseas investors and further divided his the coalition government formed in 2009 with long-time rival and, now, Prime Minister Morgan Tsvangirai.
Tsvangirai recently blasted the policy claiming it would not help solve the country’s unemployment crisis.
"Jobs are created by ensuring that you increase the size of the cake not shrinking the small cake,” the MDC-T leader told supporters at a recent rally in Plumtree.
“Jobs are not created by forcibly taking over part of established companies, but by ensuring that there are more companies opening. That’s where we differ with Zanu PF on indigenisation.”
Central Bank chief, Gideon Gono has also urged a re-think of the policy arguing the model being pursued by the government would only benefit a few.
But Mugabe vowed to press ahead with a programme at the just-ended Zanu PF national conference in Bulawayo.
"We will not reverse this policy. Let no one deceive themselves that it's devised for the elections. No, it's a fundamental policy," Mugabe said.
Labels: BARCLAYS BANK, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), NEOLIBERALISM, SAVIOUR KASUKUWERE, STANCHART
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Barclays launches visa platinum debit card
By Kabanda Chulu
Mon 24 Oct. 2011, 09:00 CAT
BARCLAYS Bank shall continue to bring innovative products to the Zambian banking sector aimed at meeting the needs and lifestyles of clients, says company managing director Savior Chibiya.
During the launch of the Barclays visa platinum debit card that is universally accepted, Chibiya said in Kitwe that the banking sector had undergone various technological changes in the past few years.
"At Barclays, we have embraced these technological changes and in responding to the needs of customers who wanted to be dealing with us throughout, even when we close in the afternoon, we decided to spread our ATM system throughout the country and our ATM system is unmatched by competitors since we have over 150 points spread across the country and there are no ATM fees," Chibiya said.
"We also have ‘SMS' alerts whereby customers can access bank statements on phone rather than visiting the bank and we also encourage customers to use debit cards to buy goods at various points of sale because it is safe and convenient. And with the visa platinum card, things will be easier for customers since they will be able to buy goods online and pay fees for those studying courses where fees should be paid abroad."
And Barclays Bank Zambia retail director Simangolwa Shakalima said the visa platinum card was universally accepted and more prestigious than other cards since it was designed to deliver international service and standards.
"Notable benefits include online activation whereby customers will be able to purchase goods through internet and the card is accepted for hotel and car hire bookings and it has access to global network of alliance partners," said Shakalima.
"The visa platinum card also brings about empowerment since customers will be able to buy what they want, and will have flexibility to manage their money."
Shakalima said the platinum card also brings about convenience since
transactions would be smooth and fast with additional benefits that
include travel insurance with a death benefit of up to US$120,000 and
medical provider referral.
Labels: BARCLAYS BANK, SAVIOR CHIBIYA
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Barclays, Impala in indigenisation talks with govt
Posted by By Our reporter at 22 August, at 13 : 45 PM Print
BARCLAYS plc and Impala Platinum Holdings Limited have received letters from the Zimbabwean government regarding submissions made to meet a requirement to sell half their local units to indigenous Zimbabweans. London-based Barclays, the UK’s second-largest lender by assets, and Johannesburg-based Impala didn’t disclose details of the letters.
The Herald newspaper reported today that indigenisation minister Saviour Kasukuwere had written to the two companies and several others giving them two weeks in which to produce plans on how they will dispose of 51 percent of their Zimbabwean units or risk losing their operating licenses.
“We remain in ongoing dialogue with the ministry,” Barclays said in an e-mailed statement.
“Our submission is confidential.”
Other companies that were given the same demand by Kasukuwere, according to the newspaper, were Standard Chartered plc, Zimplats Holdings Limited, Duration Gold Limited, Caledonia Mining Corporation, Rio Tinto plc, British American Tobacco plc , Nestle SA and Cargill Incorporated.
Zimbabwe’s central bank has no immediate or foreseeable intention to withdraw operating licences of banks in the country, Governor Gideon Gono said in a statement on the bank’s website. The bank could not speak for other industries, he added.
He clashed with the minister over these utterances. The minister said the rule of law has to be respected.
Zimbabwe issued a March 25 decree giving foreign companies 45 days to explain how they will sell 51 percent of their assets to citizens of the country. The decree followed approval of the Indigenisation and Empowerment Act.
About 700 companies have submitted their indigenisation plans to the government. If accepted, the companies have five years in which to dispose of their shares, according to the government.
Mining Review/TZG
Labels: BARCLAYS BANK, IMPALA PLATINUM, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE
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Barclays scraps ATMs fees
By Darious Kapembwa
Wed 23 Mar. 2011, 04:01 CAT
BARCLAYS Bank Zambia has introduced free ATM services for both corporate and retail clients countrywide. Managing director Saviour Chibiya announced at a breakfast meeting in Kitwe yesterday that the bank wanted to standardise its operations with other banks around the world.
“Banks generally charge ATM (Automated Teller Machines) charges and our customers have raised the question as to why they should be paying to withdraw their money and there is logic to that argument,” Chibiya said.
He said the bank had since responded to its customers’ cry and all ATM transactions at all Barclays outlets would be free starting mid next month.
“There is a small fee charged for using ATMs but that same small charge can make a difference to customers and that is why we had to forego the charge to give our customers what they want from us,” he added.
He said the bank would focus its lending to the agriculture sector due to the sector’s contribution to the country’s Gross Domestic Product GDP.
Chibiya said the bank had increased the lending portfolio to agriculture to the tune of 15 per cent.
He explained that the bank would work in collaboration with the Zambia National Farmers Union to manage the risks inherent in the sector.
Chibiya said the bank was making efforts to exceed customer expectations in terms of service provision.
He said other sectors of the economy must do more to ensure that they caught up with the mining sector in contributing to the GDP of the country.
Chibiya said it was not true that Zambia could move away from depending on copper, saying the red metal could work side by side with other sectors as long as those other sectors worked hard.
Labels: ATM, BANKING, BARCLAYS BANK, LEVIES
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Barclays Bank pays $298m to settle criminal charges
By BBC NEWS
Wed 18 Aug. 2010, 11:40 CAT
Barclays voluntarily disclosed some of the violations, according to court documents. Barclays Bank is to pay $298m (£190m) to settle criminal charges that
it violated US sanctions in dealings with Cuba, Iran, Libya, Sudan and Burma.The bank was charged with breaching the International Emergency Economic Powers Act and the Trading with the Enemy Act in dealings between 1995 and 2006. The settlement was detailed in US court documents filed on Monday. According to the documents, Barclays voluntarily disclosed some of the transactions, and co-operated fully.
Barclays has agreed to pay $149m to the US government and a separate $149m in a deferred prosecution agreement with the district attorney in New York.
A federal judge must still approve the agreement. Barclays fully acknowledged responsibility for its actions, according to the documents. The bank said earlier this month that it had set aside £194m in the first half of the year to cover a possible resolution to the case.
According to the court documents, Barclays facilitated and hid transactions for countries facing US sanctions. According to the court papers, Barclays concealed the transactions that it carried out with banks in the sanctioned countries.
As early as November 1987, sanctioned banks directed Barclays not to mention their names on payment messages sent to the United States, the documents say.
However, in 2006 Barclays voluntarily disclosed four transactions that violated US sanctions, and the bank began cooperating with a broad review by federal and state prosecutors in 2007.
The bank could not immediately be contacted for comment.
Labels: BARCLAYS BANK, SANCTIONS
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Barclays Zambia appoints Packard as interim MD
By Chiwoyu Sinyangwe
Tue 19 Jan. 2010, 17:40 CAT
ONE of Zambia’s biggest commercial banks, Barclays, has appointed Bret Packard as its acting managing director, replacing Zafar Masud whose two year contracts has come to an end.
Barclays head of corporate affairs, Webster Malido told The Post On-line that Packard’s appointment as acting chief executive officer for the bank was subject to regulatory approval by authorities in charge of the southern African region.
And Barclays chief executive officer for Emerging Markets Vinit Chandra said Zafar had made a positive contribution to the bank’s business in Zambia.
“I would like to take this opportunity to thank Zafar for the positive contribution he has made to the business in Zambia, and wish him all the best for the future,” Chandra commented.
“For the time being, and until a new managing director has been appointed, I am pleased to announce that, with immediate effect, Bret Packard will be acting as the interim managing director for Barclays Bank Zambia.”
Bret has over 23 years financial experience in senior positions including deep international expertise in consumer banking acquired across a wide range of global markets.
He joined GRB Emerging Markets Centre in Dubai in July 2009 as head of premier and liabilities after nearly three years as managing director of Barclays financial planning and premier banking within the Barclays UK Retail Bank.
Prior to joining Barclays, Bret held various senior positions with Citigroup for 19 years with overall responsibility for the Asia Pacific region consumer investments business spanning 11 countries.
Labels: BARCLAYS BANK, BRET PACKARD, WEBSTER MALIDO, ZAFAR MASUD
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BOZ expects banks to provide required level of finance – Kalyalya
By Joan Chirwa
Thu 17 Dec. 2009, 04:00 CAT
BANK of Zambia (BoZ) deputy governor for Operations Denny Kalyalya has said the Central Bank expects commercial banks to provide the required level of finance to consolidate economic gains registered so far.
During the launch of Barclays Bank Zambia Manda Hill branch in Lusaka on Tuesday, Dr Kalyalya said Zambia’s economy had been on the recovery path since the beginning of this year.
“As you may be aware, economies around the world have been negatively affected by the global financial and economic crises. Zambia, like most commodity exporting countries, was mostly affected by the second round effects of the crisis, especially in key sectors such as mining,” Dr Kalyalya said.
“I am, in this connection, happy to note that the overall performance of the financial sector has been satisfactory which should serve as a good basis for the lending we are talking about.”
He further noted that Barclays Bank, despite the setbacks from the financial crisis and its impact on the local economy, had continued to increase the number of distribution points throughout the country.
Dr Kalyaya said it was a well-known fact that branch expansion programmes played an important role in increasing access to the unbanked population in the country.
“However, there is need to complement physical branch expansion with other product innovation programmes that will capture a lot more people in the remote areas of our country,” Dr Kalyalya said.
“The real challenge for us is how to enhance savings mobilisation and effectively channel the public savings to most productive uses. It is for this reason that the Bank of Zambia has continued to encourage banks to offer an expanded range of innovative banking products.”
Dr Kalyalya further encouraged commercial banks and non-bank financial institutions in the country to continue taking a leading role in helping to improve the local financial services sector by providing greater access to banking services and products through a sustained and aggressive growth strategy.
“Needless to say that access to banking services and the contribution of the banking sector to economic development cannot be realised if the cost of accessing banking services continues to be high,” said Dr Kalyalya.
“The industry is characterised by high bank charges and interest rates. I therefore urge financial institutions to look into the issue of revising their pricing structure of banking products in order to increase access to financial services. As Bank of Zambia, we have taken up access to financial services as one of our strategic objectives for the period 2008-2011.”
And Barclays Bank Zambia chairman Jacob Sikazwe said the bank would remain committed to its goal of driving excellence in the financial services industry in Zambia even under the most difficult economic environment arising from the global financial meltdown.
Labels: BANKING, BARCLAYS BANK, BOZ, DENNY KALYALYA, JACOB SIKAZWE
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Barclays links high interest rates to low personal savings
By Mwila Chansa in Kitwe
Mon 02 Nov. 2009, 04:00 CAT
BARCLAYS Bank Zambia PLC retail director Simangolwa Shakalima has observed that the lack of boom in personal savings has had a big impact on the interest rates that banks charge on loans.
In an interview during the Barclays Bank Copperbelt customer loyalty breakfast meeting at Arabian Nights in Kitwe on Friday, Shakalima however said the culture of personal savings had been improving overtime although not consistently.
"As an economy, we have seen an improvement in people changing their culture of savings. Predominantly, we've not had a boom in savings especially at personal level but the situation has been improving overtime though it has not been very consistent," he said.
Shakalima noted that with improved personal savings, the country would see a huge impact on interest rates since savings had a bearing on how much banks charged in terms of interest on loans.
He said Barclays Bank was always alive to the financial environment in the country and tailored its interest rates in response to what the fundamentals dictated.
Shakalima said the Bank was constantly reviewing its interest rates depending on the economic environment.
"Suffice to say, there are lots of factors that determine interest rates; factors like costs and availability of funds," he said.
"Notwithstanding, we have demonstrated that when the economy dictates that interest rates come down, we behave accordingly."
And Shakalima said although there had been volatility in interest rate charges, the country had reached a stage where the volatility was stabilising.
He observed that during the years 2007 and 2008, the interest rates significantly dropped because of the economic performance at the time.
"To a large extent, certain indicators like inflation will tell you where the cost of borrowing money is going," said Shakalima.
He also observed that although the government had put in measures to reduce the general cost of doing business in the country, there was a lag in terms of reaping benefits as most of those initiatives could only bring benefits in the medium to long term.
Meanwhile, Barclays board member Martin Broome said Barclays was geared to play a leading role in economic re-awakening of the Copperbelt envisaged to take place in view of improved copper prices.
He said despite the challenging times, the Copperbelt was key to the overall economy of Zambia, further predicting that the province was poised to witness major investment initiatives.
Broome added that the projected economic rejuvenation presented an opportunity for Barclays to continue supporting its retail customers and the business community in general.
Labels: BARCLAYS BANK, LENDING RATES
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Barclays Bank, UNICEF launch global partnership
By Sydney Mungala in Samfya
Fri 23 Oct. 2009, 04:00 CAT
BARCLAYS Bank southern Africa managing director Zafar Masud has observed that although young people are extremely vulnerable they possess great potential for the country’s future.
And acting science and technology minister Ronald Mukuma has challenged corporate entities to not only train youths but help them apply what they learn after they graduate.
During the launch of Barclays-UNICEF global partnership, which seeks to empower young people in Zambia, Masud said the partnership would help vulnerable young people to improve their lives with access to education and entrepreneurship skills.
“Although young people are an extremely vulnerable group they also possess great potential. Therefore, the new partnership dubbed Building Young Futures will help vulnerable young people improve their lives with access to education, jobs, and opportunities for enterprise and entrepreneurship,” said Masud in Samfya on Wednesday.
Masud said the project reflected a shift from pure donations in corporate philanthropy to combining social investment with long-term business opportunities.
The five million pounds global project, spread over a period of three years, forms part of the five-year US $150 million Banking on Brighter Futures community investment.
And Mukuma said the youths needed help after graduating from training institutions to implement the skills acquired.
“…Institutions like Barclays should not just end at training these youths in centres but ensure that they are helped to implement what they learnt in these centres,” he said.
Mukuma said it was also important for corporate entities like Barclays to extend loan facilities to graduating youths from skills training centres.
However, Mukuma lauded Barclays Bank Zambia for the support and implored other entities to follow suit.
United Nations Children’s Fund (UNICEF) country representative Lotta Sylwander disclosed that 600 youths had so far been trained in entrepreneurship skills this year.
The four centres earmarked to benefit are Katembula in Ndola, Kaoma Youth Resource Centre, Timba in Chinsali and another centre in Samfya.
Labels: BARCLAYS BANK, UNICEF, ZAFAR MASUD
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Barclays launches branch in Mbala
Written by Kabanda Chulu
Thursday, October 15, 2009 6:22:41 PM
BARCLAYS Bank Zambia chairman Jacob Sikazwe has said the institution is determined to provide quality banking and financial services in all parts of the country to ensure that traditionally un-banked sectors of the economy have access to banking services.
During the official opening of the Mbala branch yesterday, Sikazwe said it was unheard of for traditionally un-banked communities to access banking services. He said the enabling economic environment provided by the government had made it possible for Barclays Bank to continue investing in the financial services sector.
“As a result of the favourable economic environment, Barclays Bank has been able to bring banking services to nearly all corners of the country such as Mbala, however remote and with 88 distribution points across Zambia, we are leading in terms of making banking more accessible to the majority of Zambian households and we intend to open more new outlets,” Sikazwe said. “The opening of the Mbala Branch signals our determination to provide quality banking and financial services in all parts of Zambia while ensuring that traditionally un-banked sectors of the economy have access to banking services and I am happy that Northern Province is a strategic region and we are proud that our franchise is well positioned to provide banking services to commercial and retail customers.”
Barclays Bank Mbala becomes the third branch in the Northern region after Kasama and Nakonde branches.
Sikazwe said Barclays Bank was committed to being a strategic partner through offering of products and services that supported various economic activities.
He added that the Bank would continue to look for growth opportunities to empower small and medium scale entrepreneurs.
Sikazwe said Barclays Bank had launched Customer Service Month which would run from October 5 to November 6, 2009 aimed at recognising customers for their loyalty and support.
“This is an exciting time for us because it gives us an opportunity to engage our customers and give back to them in a small but significant way. It is for this reason that you should feel free to discuss with us today in terms of how you think we can continue to serve you better,” said Sikazwe.
“At Barclays we put the customer first and this is one of our key drivers through which we consistently strive to revolutionise the way we deal with and manage customer demands for world class customer service.”
Labels: BANKING, BARCLAYS BANK, JACOB SIKAZWE
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‘Barclays owes Kabwela duty of confidentiality’
Written by George Chellah and Mwala Kalaluka
Wednesday, September 09, 2009 6:18:21 PM
BARCLAYS Bank Zambia Limited archivist Lewis Mbewe yesterday admitted that the bank owes Post news editor Chansa Kabwela the duty of confidentiality.
During Kabwela's continued trial before Lusaka chief resident magistrate Charles Kafunda, Mbewe 41, who informed the court that he looks after internal and external documents, said he received a warrant from the Zambia Police through the bank's compliance officer Teddy Muntanga.
"They were requesting for documents pertaining to the account of the customer Chansa Kabwela. I went ahead as per requirement to comply with warrants," he said.
Asked during cross-examination by defence counsel Remmy Mainza whether the warrant directed him to surrender the document to the police, Mbewe responded: "Yes, this letter came through our compliance department and we had to comply."
When asked why he did not give the police the statements of accounts as stated on the warrant, Mbewe said he was just instructed to release the mandate by the compliance officer. He admitted that he read the warrant and complied with it.
"Unfortunately, the statement of account is not with me," Mbewe said.
Asked by Mainza why he didn't tell the court that among the documents requested for by the police was the statement of account, Mbewe, who kept quiet for a while, answered: "I am not able to answer the question."
When asked by another defence lawyer George Chisanga whether as a bank they owed their client [Kabwela] the duty of confidentiality, Mbewe responded in the affirmative: "Yes!"
He also agreed that what he did was in the interest of the state. Chisanga sought to know whether Mbewe knew what bankers' books were but he said he did not know. However, Mbewe said he went ahead to produce the required documents.
Labels: BARCLAYS BANK, CHANSA KABWELA, THE POST
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Barclays announces issue of K50bn bond under DMTNP
Written by Chiwoyu Sinyangwe
Friday, August 21, 2009 4:55:35 PM
BARCLAYS Bank Zambia (BBZ) Plc has announced the successful issue of a K50 billion bond as the first tranche under its K500 billion Domestic Medium Term Note Programme (DMTNP). BBZ head of corporate affairs Webster Malido stated in Lusaka yesterday that the DMTNP was arranged by ABSA Capital, a division of ABSA Bank Limited which was part of the Barclays Group.
Malido stated that the first tranche issued on May 18, 2009 would mature in seven years on the exact corresponding day and month in 2016.
“…K50 billion bond is Series one of tranche one and has been issued as an Unsecured Subordinated Capital Note. It cleared at 250 [bps] basis point above the 182-day Government Treasury bill,” Malido stated. “The bond is listed on LuSE and will trade as BBZ002. Domestic asset managers and insurance houses accounted for the largest chunk of the orders.”
According to official market data, this is BBZ’s second debt issue since its debut issue in April, 2003.
Malido stated that the notes had been arranged and jointly placed by ABSA Capital with Intermarket Securities Ltd as the sponsoring broker while Lewis Nathan Advocates were the legal advisors, and Grant Thornton was the transfer and paying agent.
Lusaka Stock Exchange (LuSE) Central Securities Depository would act as Trustee.
Commenting on the development, BBZ managing director Zafar Masud expressed confidence that the successful issue by the country’s largest commercial bank would pave way for other issuers to come to the market.
Masud said Barclays Bank was a pioneer in the local debt capital market and had a responsibility to continue to support it.
The BBZ bond was launched earlier this year by finance minister Dr Situmbeko Musokotwane.
And according to the official note from BBZ accompanying the announcement, the listing statement was not a prospectus, nor did it constitute any invitation to the public to subscribe for shares or notes issued by the bank, and that it would, consequently, not be registered with the registrar of companies.
“It is, rather, supplied in compliance with the LuSE listings requirements to provide note holders and the public with appropriate and necessary information on the programme,” the note read in part. “This listing statement should consequently be read in conjunction with the programme memorandum dated 27 February 2009 (“the programme memorandum”), and definitions contained in the programme memorandum apply throughout this listing statement, unless otherwise stated or the context requires otherwise. A copy of the programme memorandum is available from the issuer upon request. The notes were listed on LuSE on Monday 20th July, 2009.”
Labels: BARCLAYS BANK, DOMESTIC MEDIUM TERM NOTE PROGRAMME
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Barclays unionized workers win pay rise
Written by Masuzyo Chakwe
Friday, June 12, 2009 8:37:16 PM
BARCLAYS Bank Plc unionized workers have been awarded a 15 per cent (K600,000) salary increment across the board. Speaking at the signing ceremony between the bank and the Zambia Union of Financial Institutions and Allied Workers (ZUFIAWU) on Friday, ZUFIAWU president Joyce Nonde-Simukoko said as difficult as it may have been, the negotiations reached a conclusion.
She said Barclays Bank had done a lot in many areas like women empowerment and HIV and AIDS and had continued to have a lot of customers.
And Barclays Bank Zambia acting managing director Patrick Wanjelani said the bank was operating in a very difficult time when the country was experiencing the effects of the credit crunch.
Wanjelani said the financial melt down had caught up with them and had brought about a number of challenges not only to the business but to the banking industry as a whole.
He said negotiating during these hard times had not been easy as could be seen by the strikes being experienced all over.
"The two parties have agreed on a number of items among these being a salary increment of 15 percent across the board. Barclays Bank Plc remains committed to staff welfare even in these difficult times, staff come first," said Wanjelani.
Labels: BARCLAYS BANK, JOYCE NONDE, SALARIES, TRADE UNIONS
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