THE Bank of Zambia (BoZ) has expressed concern at the increased levels of bouncing cheques by individuals and companies despite legislation against the vice.
BoZ Governor Caleb Fundanga said the fourth quarter of 2010 had showed an increase in the number of cheques bouncing as a result of insufficiently funded accounts by 5.4 per cent.
Dr Fundanga said the number of bounced cheques had risen to 4,428 as compared to 4,202 in the third quarter.
In the third quarter, the 4,202 cheques had a value of K35.3 billion and the value moved to K36.2 billion in the fourth quarter.
Dr Fundanga urged members of the public to ensure they have sufficient funds in their accounts whenever they issued cheques.
“This will ensure that they do not face criminal charges under the National Payment System Act for bouncing a cheque, dishonest or with intent to defraud,” Dr Fundanga said.
Under the Act, it is a criminal offence to bounce a cheque and an individual can be arrested and prosecuted.
During the quarter under review Zambia witnessed an improvement in the availability of the electronic payment options.
Dr Fundanga said the number of the point of sale (POS) terminals increased by 8.3 per cent to 1,119 compared to 1,033 during the third quarter of 2010.
“The volume of POS transactions also increased by 42.2 per cent to 284,145 when compared to 199,817 in the third quarter. Similarly, values of POS transactions increased by 32.6 per cent to K113.9 billion (third quarter 2010: K85.9 billion),,” Dr Fundanga said.
He said the number of automated teller machine (ATM’s) increased by 4.5 per cent to 489 ATM’s compared to 468 in the third quarter.
The volume of ATM transactions also increased by 5.1 per cent to 6,654,992 in the period under review from 6,333,073.
Further the value increased by 71 per cent to K3, 397.3 billion in the same period from K2, 897.6 billion.
The banking sector for the quarter ended December 2010, he said, was satisfactory and the capital position, asset quality and liquidity also performed well.
Dr Fundanga said earnings performance of the sector declined largely on account of an increase in the non-interest expenses.
This was due to increase in staff emoluments, reorganisation costs and additional tax provision.
[Times of Zambia]
Lucy Changwe was spared for bouncing a cheque. Fool..ish MMD applying selective justice. Mpombo was quickly convicted and jailed.
MMD to go in 2011.
Let it be mandatory. Let every one with a shop have a POS terminal for people to buy with a debit card. That way we will reduce robberies since there will be littel cash on premises and it will be easy to know the turn over of these shops so that their can be taxed accordingly. Currently, all these lebabise/Chinease are evading tax becouse they bank money under their balls and not in the bank.
I thought the law only visits you for bouncing a cheque if you criticise the govt. For as long as you are in good books with govt, nothing will happen to you.
Lucy Changwe set the precedent
I think it doesn’t make sense for the governor to be telling us the number of bounced cheques only. He knows their is a law in place why doesn’t he tell us all those bounced cheques are before the courts for prosecution.
#4 Yes you are right. But Iam sure out of 4,428 cases only one has been prosecuted.
He is perfoming his last duties as Governor, they are bringing Margret Mwanakatwe as Governor, Austin Mwape as Deputy Governor Operations and a named Lawyer currently in the diaspora as DG Administration…
for the survival of business and general business credibility and sanity people bouncing cheques must severely punished. this will restore confidence in cheques as a mode of doing businesss. its certainly shameful the Politicians’ behavior never changes. they continue to apply the law selectively
I think this is a very bad law. What is going on with Zambian lawyers? Where are you guys that can allow such a s t u p i d law on the statutes? Ok, I see the point. It could be that Lawyers being recipients of a lot of money may have been victims of bounced cheques. I grant that it is wrong to issue a cheque against insufficient funds BUT IT IS NOT A CRIMINAL act. IT IS A CONTRACT that is breached. How can Dr Chiluba defraud Zambians of up to $40 m and not be criminal but 4000 Zambians bouncing cheques for $9 m are criminals? When a person signs a cheque, he enters into contract and so bouncing a cheque is a civil law matter. Banks can make a lot of money from this by penalising the culprits heavily.
#8 ha ha ha just counter check what other countries are doing. this is standard. can you image that me an ordinary is being inconvienced by a few crooks. i cant use a cheque in zambia, that is unfair on me.
Statement from BOZ Governor Dr. Fundanga is worrying 4,428 bounced cheques during the last quarter of 2010 but only one George Mpombo was taken to court and fined and to some extent Lucy Changwe escaped the charge. So its 1/4,428. What a shameful system. For Mpombo it was politically engineered. Any way its good the BOZ chief has put the record straight. Why is this law not being enforced to its end.
#10 this is what is called rumor mongering. how told you that only one mpombo has been pursued. you should say that is the only who was in the paper or the only one you know. don’t lie. its chaps like you who are destroying the country not politicians