ZNBS books of accounts not reconciled - Auditor General's report
By Henry Sinyangwe
Mon 18 June 2012, 13:24 CAT
ZAMBIA National Building Society's books of accounts have not been reconciled for the past five years in which it wrote off K948 million mortgage debts which were not secured, says the Auditor General's report. And reports reveals that ZNBS in 2006 wrote off K2.1 billion unreconciled balances in mortgage loans although no documentation was availed for verification.
"A scrutiny of financial statements revealed that the society's accounts for the year ended 31st March 2007 had unreconciled balance of K86 million which was stated as relating to inter branch receivables," stated the Auditor General.
"There was no documented evidence produced for audit to indicate that the accounts have been reconciled as of December 2011."
The report stated that ZNBS wrote off mortgage debts amounting to K948 million which were not secured.
"Although in response, management stated that all mortgages were secured by property and that had been the case on all traditional mortgages except for home improvement loans which were of a shorter duration were secured by simple deposit of title and memoranda of understanding or deed of guarantee with various organisations which form the basis of security as repayments were recovered at source by the employer and that most of the poorly performing loans were on account of job losses following the global credit crunch from 2008 to mid 2010 which resulted in Sun Hotel laying off a substantial numbers of employees who had borrowed thus necessitating write-offs, no documentations were availed for verification," according to the report.
The report stated that as of March 31, 2010, 3636 accounts with a total of K5,278,505,928 were overdrawn in all the 19 branches of the society compared to K1,277,971,110 overdrawn in 2009.
"Therefore, the overdrawn accounts increased by K4,000,534,818 representing an increase of 313 per cent," stated the report. "Amongst the branches which had the largest amounts overdrawn were Chililabombwe, Chingola, Kitwe, Livingstone and Solwezi with Kitwe being the highest with a value of K922,969,796."
ZNBS is expected to appear before the Parliamentary Public Accounts Committee (PAC) this Friday to respond to the queries raised by the Auditor General.
Labels: AUDITOR GENERAL, ZNBS
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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
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Sata directs new Attorney-General to establish the legality of online papers and disolves ZNBS board
TIME PUBLISHED - Saturday, November 12, 2011, 11:32 am
President Sata has directed newly appointed Attorney-General Mumba Malila to investigate the legality of the many small newspapers and on-line publications operating in Zambia that are bent at spreading falsehoods about him and the Government.
Speaking when he swore in Mr Malila and Ms Rosewin Wandi as Attorney-General and Anti-Corruption Commission (ACC) director general at State House, respectively President Sata said there was too much corruption at ZNBS which needed to be addressed.
“Two of you have been once victims of witch- hunt, you have come back because you deserve to be what you are. There is too much corruption at ZNBS. ZNBS is not doing business and I can not see how the board can appoint a woman and pay her K56 million, now K56 million per month by an organisation which is not making money! “ This is the same organisation where somebody irregularly pumped U$98 million. I have with immediate effect dissolved the board of ZNBS and I have appointed a commission which will be headed by Mr Mwila Lumbwe,” President Sata said.
He said the commission would also have representation from the ACC and the Drug Enforcement Commission (DEC) and other members. On the mushroomed internet and newspaperpublications, Mr Sata tasked Mr Malila to authenticate the legality of such publications in line with the law which required that they are registered. “Last year when we were preparing for elections, these so called unregistered internet (publications) and newspapers said Mr Sata had collapsed, Mr Sata is very sick, Mr Sata has died and yesterday the whole Eastern Province (was made to believe) that Mr Sata was dead.
There is too much corruption at ZNBS. ZNBS is not doing business and I can not see how the board can appoint a woman and pay her K56 million, now K56 million per month by an organisation which is not making money! “
“So, I am not asking for a witch- hunt, but you as Attorney-General, let us enforce the laws of this country because all these internets are all orchestrated by the UPND,” Mr Sata said. The President said that last year theon-line publication, Watchdog, which he said was UPND peddled lies that he was dead, he was too sick, when in fact not.
“It is all UPND and I am not going to start a witch-hunt and as they are saying now, yesterday I was dead, today I am standing here, maybe I have so many lives because even before elections I was dead, in 2009 our brothers got some fake doctor who told them Mr Sata would die before 2009 and came into a pact, come 2009, I did not die, come 2010, I did not die.
“They pull out of the pact and now they are still peddling lies, what type of politicians are these that want to survive on other people’s blood? He urged Mr Malila to re-enforce the law and assist the police and all investigative agencies in that regard.
President Sata also noted that his administration would not rush into taking people to court without gathering enough evidence to warrant convictions. “Only when we are ready shall we take people for prosecution, we don’t want to rush. You remember Mr Malila and Ms Wandi, the so-called Task Force, people were going to court for seven years, and the so-called prosecutors were getting K100 million per month for three convictions.
“Only when we are ready shall we take people for prosecution, we don’t want to rush. You remember Mr Malila and Ms Wandi, the so-called Task Force, people were going to court for seven years, and the so-called prosecutors were getting K100 million per month for three convictions.
“Three convictions for seven years, I think these are things we need to improve, let us only go to court when we are ready, to say we have a case to go and present to the courts, let us not use courts or use the police for politics,” Mr Sata said.
He noted that there was so much injustice in Zambia and wondered how a person sent on forced leave for more than three years could continue drawing a salary.
“Who is cheating who? If you send a person on leave, and then you continue paying them a Permanent Secretary’s salary, they are still getting all the benefits? In my opinion this is corruption,” Mr Sata noted.
He congratulated Mr Malila for bouncing back as Attorney-General and Ms Wandi on her new appointment as ACC boss. Mr Sata said he had trust that the two appointees would discharge their duties diligently and urged them to show Zambians that they were better than those that were there. The President also took a swipe at Secretary to Cabinet Joshua Kanganja and his team for keeping him waiting at the office.
“I don’t believe in the Secretary to Cabinet because he is always misleading me. I was here waiting for the Secretary to the Cabinet, he is taking his time with his staff and I had to go back to my office. This is the Government you are running,” Mr Sata said.
And Mr Malila welcomed his appointment and stressed that he understood the challenges that lay ahead in the job but that he was equal to the task. “We shall review areas of bad administration, let me also state here that onlinepublications and newspapers are supposed to be registered and so we shall countercheck the many on the market to see if they followed the law,” Mr Malila said.
“We shall review areas of bad administration, let me also state here that online publications and newspapers are supposed to be registered and so we shall countercheck the many on the market to see if they followed the law,” Mr Malila said.
Ms Wandi said she felt honoured and humbled with the confidence President Sata had placed in her and as such she would not let the nation down. Earlier, the President also hailed the cordial ties that Zambia had continued enjoying with Sweden and hoped the two countries would solidify such ties. He said this when he received letters of credence from the new Swedish ambassador to Zambia Lena Nordstrom.
Ms Nordstrom reiterated her country’s continued support to Zambia’s various sectors of the economy and the fight against HIV/AIDS programmes. She congratulated President Sata on his election as head of state and commended the peaceful transition of power process.
[Times of Zambia]
Labels: ACC, CORRUPTION, INTERNET, MICHAEL SATA, MUMBA MALILA, ROSEWIN WANDI, THE POST, ZNBS
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Sata accuses UPND of lies against him
By Bright Mukwasa
Sat 12 Nov. 2011, 12:10 CAT
PRESIDENT Michael Sata says he is surprised that the opposition UPND always wants to survive on his blood. And President Sata has dissolved the Zambia National Building Society board with immediate effect and appointed a commission of inquiry to investigate alleged impropriety in the institution.
President Sata made the remarks yesterday at State House when he swore in prominent Lusaka lawyer Mumba Malila as Attorney General and Rosewin Wandi as director general of the Anti-Corruption Commission.
He directed Malila to scrutinise the mushrooming of various publications which he accused of peddling lies against him and his health.
"Last year when we were coming for these elections up to this year, these unregistered newspapers, unregistered Internet said Mr Sata has collapsed, Mr Sata is very sick, Mr Sata is dying and yesterday the whole Eastern Province and Kamwala Mr Sata was dead. I am not asking for witchhunt but you as Attorney General let's enforce the laws of this country because these Internet they are all orchestrated by UPND. Last year…, the Watchdog is UPND. Who is talking Sata has collapsed, Sata has died, Sata is too sick, it's UPND," President Sata said.
"I am not going to start a witchhunt and as they are saying now, yesterday I was dead, today I am standing here. I think I have got so many lives, even before the elections I was dead, come to the elections I am standing here. And this Mr. Malila reminds you in 2009, our brothers got some fake doctor who told them Mr Sata would die before 2009 so they came into a pact, come 2009 I didn't die, 2010 they pull out of the pact and now they are still peddling. What type of politicians who always want to survive on other people's blood?"
President Sata also said the government would only go to court on various offences when it was certain it had a solid reason to do so to avoid injustice and using the courts for politics.
"How do you send a person on forced leave for more than three years at the same time continue paying that person who is on forced leave, continue paying the permanent secretary salary, he is still getting all the benefits? In my opinion that is corruption. You send a person on forced leave and continue paying them, who is cheating who?" he asked.
"And you remember Mr Malila and Madam Wandi the so-called Task Force for seven years, people were going to court, seven years and the so called prosecutors were getting K100 million a month for three convictions, three convictions for seven years these are things which we have to improve on. Let's go to court only when we are ready to say we have a case to go and present to the courts. Let's not use courts, or use the police for politics but I congratulate you and I know you are going to do well."
President Sata said he did not believe in victimisation and the duo deserved the appointments and he was sure they would do a good job.
And President Sata dissolved the ZNBS board citing corruption.
"Zambia National Building Society is not doing any business. I can't see how the board can appoint a woman and give her K56 million a month. Now K56 million for a month for an organisation which is not making money and that's an organisation where somebody irregularly pumped US$98 million," he said.
"I have with immediate effect dissolved the board of Zambia National Building Society and appointed a commission which will be headed by Mr Mwila Lumbwe. Members will be Mr Nonde of Ernest and Young, Mr Jere, we will have one person from Anti-Corruption Commission and one person from DEC and I want Mr Secretary to the Cabinet to arrange for their swearing in so they can begin their function."
Meanwhile, Attorney General Malila said he was ready for the challenge again.
"I'm getting back to the office already with my sleeves folded. There's work to be done and we are ready to start. It's a big challenge but I think we are equal to the challenge," Malila said.
Malila's contract could not be renewed by former president Rupiah Banda when it expired on December 1, 2009.
"He President Sata spoke very passionately about enforcing the law and so what we can do obviously is review areas where we think the law is being disregarded and take action through appropriate agencies. Of course there's requirement for registration of all publications in whatever form. I think the President's concern is that there are so many of them that are appearing on the market without proper registration," he said.
"What we shall do that's a directive we shall go and sit down and look at the various publications that are on the market and see whether they are complying with the law."
And ACC director general Wandi said she would ensure the commission fought corruption with vigour.
"I feel happy to take up the challenge to effectively fight corruption in Zambia. I will not betray that confidence that has been placed upon me. I will conduct the affairs of the commission within the confines of the law and if we do any investigations, they will be done without fear or favour whoever commits the offence."
Foreign affairs minister Chishimba Kambwili said the appointment of Attorney General Malila and ACC director general Wandi was a manifestation that President Sata was not vindictive as claimed by MMD.
Labels: ATTORNEY GENERAL, MICHAEL SATA, MUMBA MALILA, ROSEWIN WANDI, UPND, ZNBS
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President Sata dissolves ERB board
TIME PUBLISHED - Friday, September 30, 2011, 1:25 pm
Republican President Michael Sata has with immediate effect dissolved the Energy Regulation Board (ERB)board. President Sata has since appointed a commission to be headed by Patriotic Front General Secretary Wynter Kabimba to probe corruption allegations surrounding ERB.
He says there is need to ascertain why the prices of petroleum products in the country have continued to sky rocket.
The President has also demanded reports on the sale of Finance Bank Zambia Limited to First National Bank of South Africa and the National Pension Scheme Authority (NAPSA) Zambia National Building Society (ZNBS) deal to be availed to his office within 30 thirty days.
The $98 million NAPSA deal recently raised questions from several members of the public over the manner the transaction was handled.
President Sata was speaking at State House this morning when he swore in all appointed cabinet and deputy ministers.
And President Sata has urged all those appointed in various ministerial positions to work to the best of their ability in order for Zambians to benefit from their services.
[QFM]
Labels: ERB, MICHAEL SATA, ZNBS
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Who is Zambezi Consortium? Lubinda asks Liato
By Chibaula Silwamba
Thu 19 May 2011, 04:01 CAT
THE Minister of Labour and NAPSA must make full disclosure of the ownership of Zambezi Consortium concerning the US$98 million deal with ZNBS, says Given Lubinda.
Commenting on labour minister Austin Liato’s claims that it was false that a Kenyan firm had been engaged in the US$98 million NAPSA deal to refurbish Zambia National Building Society (ZNBS), Lubinda said Zambians wanted to know the owners of Zambezi Consortium and how it was picked as the preferred bidder to run the investment portfolio.
“We understand that this is an investment by NAPSA. That is not the issue. But the issue is who is behind this special investment vehicle called Zambezi Consortium. Can Liato categorically say that there is no Kenyan involved in Zambezi Consortium and can he disclose the shareholding of Zambezi Consortium? Who are its shareholders? Can he also disclose the other bidders who took part in bidding to manage that investment portfolio,” Lubinda demanded.
“Can the feasibility study be made public so that other stakeholders can assess the viability of this investment portfolio, bearing in mind that what is being invested is contributors’ money? We are being wary because the experience in Zambia has shown that many pensioners go to their graves early without receiving their benefits because of the mismanagement of these investment portfolios by some of these pension funds. That is the reason why the public is interested and want full disclosure of these investments.”
Lubinda, who is Kabwata PF member of parliament, said US$98 million, which NAPSA was investing in ZNBS, was a lot of money for which the public wanted to know the viability of the investment.
“We are not talking about K98 million but US $98 million; it’s a huge amount of money for NAPSA to invest without making a full public disclosure so that all the members of NAPSA are aware of how their money is being managed. So, please, Mr Liato should not try to wash this issue away by just telling us that there is no Kenyan involved but it’s a consortium called Zambezi. What is important is for us to know who is behind Zambezi Consortium.”
Well-placed sources in government disclosed that President Rupiah Banda pressured NAPSA to provide US$98 million to ZNBS for refurbishing the latter’s building in Lusaka.
However, NAPSA and ZNBS have failed to convincingly explain the transaction in which a Kenyan firm was allegedly single-sourced to carry out the works.
Liato dismissed allegations that President Banda influenced NAPSA in the US$98 million deal, adding that it was false that a Kenyan firm was party to the transaction.
Liato said the transaction would be managed through Zambezi Consortium but did not disclose the names of shareholders of the same entity.
Labels: AUSTIN LIATO, CORRUPTION, GIVEN LUBINDA, NAPSA, ZNBS
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Rupiah’s scams will be followed, says Panji kaunda
By Chibaula Silwamba
Wed 18 May 2011, 04:00 CAT
THE numerous scams that President Rupiah Banda is involved in will follow him when he leaves office and he will be prosecuted, says Colonel Panji Kaunda.
Commenting on allegations that President Banda forced NAPSA to give US $98 million to Zambia National Building Society (ZNBS) to refurbish its Society House building in Lusaka, Col Panji said
the questionable deal would follow the President when he leaves office.
“As PF leader Michael Sata is saying, whoever is involved in corruption no matter how big they are, they must be accountable to the people of Zambia through our system. This is what we are praying for,” Col Panji said.
“We must make sure that the money that was stolen is brought back. Every single brick that they have laid on their foundation, if it was stolen, it must be given back to Zambians. This is our cry and wish.”
He said there was need to change the Constitution and systems to ensure that the President was accountable to the Zambians unlike at present where he could violate laws and commit wrongs but the law enforcement agents cannot investigate him.
He said the President had excessive powers, whereby he could do anything without being questioned, appoint and fire anybody from his shoe cleaner to the Republican Vice-President.
He said even if the President was involved in corrupt activities, law enforcers like the Anti Corruption Commission (ACC) could not do anything.
“There is no system in place today that can investigate the highest authorities in this country. Even now we have some of our leaders’ children spending a lot of money but the system is not there to ask.
They ask us where we get the money to campaign but nobody asks them where their children are getting money to buy all the fancy toys posh vehicles they are moving around with,” Col Panji said.
“Unless we change the government and thereafter change the system we shall forever be crying and our money will continue to be stolen.”
He said it would be up to Zambians, in a few months time, to get the MMD’s ‘big people’ out of government and bring in others who would govern according to the will of the people.
He said the new government must change the Constitution to allow law enforcers to operate independently and investigate whoever engaged in illegal activities.
Col Panji observed that the arrest of International Monetary Fund (IMF) managing director Dominique Strauss-Kahn, whom he described as one of the most important persons in the world, was proof that where there were systems, even the powerful could be arrested, held, and prosecuted for their wrongs regardless of their status in society.
“But we can’t see that happening here in Zambia. Here the powerful ones can get away with murder,” said Col Panji.
Labels: CORRUPTION, NAPSA, PANJI KAUNDA, RUPIAH BANDA, ZNBS
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Fundanga urges ZNBS to prioritise provision of mortgages for housing
By Mwila Chansa in Kitwe
Sat 12 June 2010, 17:30 CAT
BANK of Zambia (BOZ) governor Dr Caleb Fundanga has implored the Zambia National Building Society (ZNBS) to take a significant role in the provision of mortgages for housing.
And ZNBS board chairperson Luambe Mondoloka has disclosed that ZNBS has developed a model for renovating the gutted Society House in Lusaka through the private public partnership concept.
In a speech read on his behalf by BoZ Northern region director Maurice Mulomba during the launch of the ZNBS refurbished office in Kitwe on Friday, Dr Fundanga observed that a lot of houses that were being built at the moment were being funded from people’s personal savings.
“You will agree with me that this is not the most efficient and effective way to finance such projects,” said Dr Fundanga.
“We note that there is still room for developing long-term finance in Zambia even for housing which is inadequate. It is therefore incumbent upon management that this opportunity is fully exploited.”
And Dr Fundanga observed that industry dynamics dictated the delivery of financial services in an environment that was conducive and comfortable for customers.
He commended ZNBS management for embarking on a programme to refurbish their branches.
And Mondoloka said the refurbishment of the Kitwe branch should not be seen as an isolated event because three other branches in Livingstone, Lusaka and Mufulira had already been renovated.
“The ZNBS has also developed a model for renovating the gutted Society House in Lusaka through the public private partnership concept. As you know Society House has been an eyesore for many years now,” he explained.
Mondoloka further said ZNBS had recognised the need to deliver effective and efficient services to its customers and that the process of re-aligning its systems and processes as well as retraining staff had already begun.
He added that with the above developments, the vision of ZNBS to be the preferred provider of housing finance, financial services and other allied services had become a reality because the ability to offer a competitive package to its customers had been enhanced.
Mondoloka also said it was the desire of both the board and management to run ZNBS professionally whilst observing the tenets of good corporate governance and high level ethical conduct guided by an ambitious corporate strategic plan.
Meanwhile, ZNBS managing director Noriana Muneku recalled that at one time, ZNBS Kitwe Branch was in such a bad shape that the local authority contacted the branch manager to at least even put a coat of paint to the building in line with the Keep Zambia Clean and Healthy campaign.
“When the branch manager contacted me to inform me about what the town clerk had said, I refused and instead advised that we assure the town clerk’s office that instead we would renovate the building. Am sure there were doubts in their minds but thanks to the talent of my dedicated team of management and staff alike, we got better to what we were doing and so did our business and what we have achieved and are seeing today,” said Muneku.
Labels: CALEB FUNDANGA, MORTGAGES, ZNBS
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