The Bank of Zambia has started the process of selling off Finance Bank Zambia Limited, in line with the Banking and Financial Services Act.
The Central Bank has asked interested parties to either make oral or written submissions during a public hearing that will be held at the Mulungushi Conference Centre in Lusaka, on March 9th 2011.
The Bank of Zambia says the legal rights of depositors and creditors will be honoured during the transaction.
This is according to a statement released to ZNBC News in Lusaka on Tuesday by Bank of Zambia Head of Public Relations Kanguya Mayondi.
Mr. Mayondi says the Central Bank would like to ensure that the branch network of Finance Bank is maintained and employment safeguarded.
He said the assets and liabilities of Finance Bank still remain solvent.
Mr Mayondi however, revealed that Finance Bank has a shortfall in the regulatory capital as prescribed by the Central Bank.
Government took over operations of Finance Bank in December last year.
[ZNBC]
Could someone please educate me? What will be the purpose of the public hearing when the decision to sell the bank has already been made? BOZ has made its reasons for its actions pretty clear, so what is the public hearing intended for? I can’t imagine that they will be receiving oral or written bids to buy the bank during this hearing, will they? Or perhaps, there is relevant information missing from this article?
Such assurances of safeguarding the jobs and branch network have been made before for the other companies that have been sold but the reality has been the opposite, people have lost jobs. I just hope whoever is going to take over will have the heart for the workers.
Not good news BOZ. Why do we take away everything “Made in Zambia?” Are there no other solutions but to give away Finance Bank after all these years it took Mathani to build? Better GRZ takes over than give it away! I miss Meridien BIAO the Pan African Bank too! Please don’t sell it to Bamwisa!
Mortgaging Zambia once again!
Sell the bank. All of you guys who know nothing apart from criticising anything that is announced, why don’t you put up some money and buy Finance Bank instead of crying foul everytime even about things you understand little about. Stop being an empty calabash and put some money forward. Some of you are addicted to criticising so much so that you even criticise your ownself everytime you make a personal decision, hence you are paralysed without making any personal progress! The only way to protect depositors’ money in FB is to sell the bloody bank. If you have a bone to chew about that hunt Rajan Mahtani and give him the deserved kick in the arse for running the bank down.
Good move though long overdue! Funny how Caleb is acting so swiftly when he and Levy allowed Rajan to continually flout the law! Mr Clean (MHSRIP) was busy crucifying kafupi the lazo, all while his indian friend was pulling fast ones right, left & center. This move is in the best interests of all stakeholders, most importantly the depositors.
Reading comments on topics on this blog, its amazing to see the quality of people who are in Zambia. None has even the simple understanding of basic economic’s nor even understanding of global affairs. I have not been to Zambia for almost 20 yrs and indeed its amazing.
More the reason why Indians, Chinese etc are busy making money while Zambia fight over trying to make a former constable (SATA) a president. The country is indeed doomed….
I think Zambians need short of a miracle
We understand economics. The problem we are crying about is that Zambians who may not have the capacity to own something in Zambia to the magnitude of biding for Finance Bank will watch akimbo as the powerful forces of infestors from outside will again take over. What part of this economics do you think we don’t understand?
This is evil nailing mathani’s A.S.S to the wall. Banda’s agenda is evil. It took that Zambia atitude, effort and money to build that bank and it has taken a year for banda and his evil cohort to bring the man down. how evil can this man be
The IGWE No 5 if you are that knowledgeable you should understand that criticism is health to bulid and provide checks and balance.You claim to know better than others but yet you sound so hollow and your analysis is seriuosly flawed from an intelectual point of view.Probably you are the only one who does not understand the political undertone behind the FB saga.This is simply a political ploy.By the way check the spellings of most of the words you are using.
After all efforts it took to ‘erect’ finance bank an indigenous zambian company and now to decide to sell it to outsiders for me it is unthinkable for mmd govt to come up with such a decision. The move by mmd govt appears nothing else but a ploy to settle the scores. If we are really proud of our indigenous companies why rush to sell to outsiders. Govt institutions/companies such has Napsa, Zesco, Zamtel, etc have dirty transactions with the ruling party especially during election periods but why the rush to sell finance bank. Politics is really true a dirty game.
#7 you level of immaturity and arrogance does not suprise me. how can you make such generalizations. what is it that you understand that you thing we the zambians don’t. just because you are living in a foreign nation does not make you better than those who are living at home. tell me which country you are i tell you what you don’t know. i don’t want to assume you are in SA
No. 8 What you don’t understand about economics is that you can not own something if you don’t have money. If you want Finance bank put up the money to buy it. The owners of Finance bank broke the laws of Zambia. They have a right to challenge in a court of law which they have failed so far. The problem in Zambia is you all see things in political terms. The day you start seeing things in money terms maybe the country will go somewhere…
You still living under the Kaunda era of being given everything for free…thats the economics you do not understand