National Movement for Progressive party leader Nga’ndu Magande said in Lusaka yesterday that the president should have waited for the outcome of results from the commission of inquiry he had tasked to investigate the sale of the bank.
Mr Magande, who is a former Finance minister, said Presidents Sata’s decision on FBZ may raise uncertainty in stakeholders and members of the public. He said the president should have maintained the pronouncement he made when he directed the ministry of Justice to establish a commission of inquiry to probe the sale transactions of FBZ and ZAMTEL.
“I think he should have allowed the process of the law to be followed. The directive he gave the ministry of Justice to establish a commission of inquiry to probe the transaction was a very good move. The commission could have come up with tangible results,” Mr Magande said.
Zambia Empowerment for Economic Development leader Fred Mutesa said President Sata’s decision was done haphazardly. Dr Mutesa said President Sata should have given sufficient time to the ministry of Justice to act according to his directive and get a solid report after investigations. “The setting up of the commission of inquiry was imperative because we all really wanted to know reasons why the MMD government sold Finance Bank and how the transaction was done,” he said.
United Party for National Development president Hakainde Hichilema welcomed the move by the Government to give back Finance Bank Zambia to the original owners.
He said repossessing FBZL was a good move because the bank was taken from Rajan Mahtani for political reasons. He, however, called for orderliness in the handover of FBZL to the original owners.“Finance Bank was taken over wrongly and its handover to the original owners is a very welcome move except that the transition should be done in an orderly way,” Mr Hichilema said.
Meanwhile First Rand National Bank (FNB) has said it has not yet received an official notification on the decision to reverse the sale of Finance Bank Zambia.
FNB South Africa chief executive officer Michael Jordaan said there had been no formal communication on reversal of its transaction to acquire certain assets and liabilities of FBZ.
Mr Jordaan said this in a statement yesterday released by FNB South Africa head of corporate communications, Virginia Magapatona.
“FNB confirms that despite today’s media reports, it has not received any formal notification that its proposed transaction to acquire certain assets and liabilities of FBZ has been reversed.
“Zambia’s central bank, Bank of Zambia approached FNB South Africa to provide experienced managers to assist BoZ in managing the operations of FBZ whilst BoZ undertook a process to secure the long-term future of FBZ,” Mr Jordaan said.
President Michael Sata on Monday reversed the sale of FBZ to FNB and ordered the Ministry of Finance and National Planning to return it to its original owners. Mr Jordaan said BoZ conducted a transparent process which it confirmed was both within its mandate and within the appropriate legal framework to protect depositors, customers and employees of FBZ and that it was systemically important to the banking system of Zambia.
“This process resulted in the proposed sale transaction with BoZ. We strongly believe that the due process was followed and that the agreements reached with BoZ were concluded in accordance with
the Zambian law,” he said.
Mr Jordaan said FNB South Africa was already a significant international investor in Zambia to which it was still committed and would continue to evaluate its options as the situation developed. Meanwhile President Michael Sata’s decision to reverse the sale of Finance Bank Zambia Limited (FBZ) and return it to the original owners has been received with mixed feelings.
The Bank of Zambia (BoZ) last month sold selected assets and liabilities in FBZ to FNB at a net cost of K27 billion. The central bank last year had taken over supervisory action against FBZ and took possession of the bank.
[Times of Zambia]
That is Sata for you! Laws and orderliness seem to be an incovenience to Sata.
“There appear to be elements of tribalism and nepotism in the appointments Michael has made. Look at the names of the people Michael has nominated to his Cabinet! Over 50 per cent of them are directly or indirectly his personal relatives”
(Post Editorial Comment—October 4th, 2011)
iwe keke in retrospect you such a tonga full of damagogue mabisi politics even when you are in the states you still display that tribal loyalty stuff that deep rooted in selfish behavioral symptoms the southern province voted mostly for HH had assumed victory he would have done the same skanganga pakunia you are like a male dog whose male genitalia is stuck in the bitches cunt stragling to pull out bend that bemba hateration i one of them and cant extinct us even if you ripped out my chromosomes
Why the hurry your excellency: is it in the interest of some friends who had connections with the Bank! one wrong is easy to correct, now two will be costly! FNB and FBZ! How about those who were shown to be owing this bank alot of money-paayback it seems
BUT MR. MAGANDE WHY WAS RB SO QUICK TO SALE IT… AND WHEN IT WAS SOLD WHY DIDN’T YOU SAY ANYTHING. AND BESIDES I AM SURE IT IS THE SAME COMMISSION WHICH ADVISED SATA THAT THE TRANSACTION WAS DONE WITHOUT PROPER DOCUMENTATION. YOU WANT THEM TO GO ON LOOKING FOR SOME MORE BLANK PAPERS… IF THERE ARE NO DOCUMENTS WHY GO ON LOOKING FOR MORE BLANKS WHITE PAPERS.
I think magande is correct, the President should have waited. Suppose the misdeeds that was reported to have been commited by mahtani and freinds turns out to be true, wat will the president say?
That is so true Magande yet he is excoriating others in a separate story that the judiciary shouldn’t be run on people’s opinions.The question is why hasn’t he done what he is preaching and wait for the inquiry report before acting on Finance bank? He did that based on his supposedly superior opinion.
I think straight forward cases should be disposed of quickly. we do not want a situation were these case take 10 yrs in enquiries and courts. It is very costly to the country. Look at the Chiluba case during Mwanawasa and how much it cost the country?
“FNB confirms that despite today’s media reports, it has not received any formal notification that its proposed transaction to acquire certain assets and liabilities of FBZ has been reversed.
So the transaction did not happen? Just proposed? And FNB was only offered SOME of FBZ??
sata is innocent, but his advisers.
The sale is said to have been done about two weeks ago. What is it that was done? Why did the RB Gvt rush to conclude the sale when there was no cabinet to approve the sale. Who approved the sale and was there any bids that were received from other banks or institutions. Who sealed the sale? These are the many questions that should be asked before we start condemning the president for the reversal of the so called sale. There might have been no sale at all but proposed sale. Meaning no legal documents to back the sale were in place. For me one issue that will clear this is the BOZ governor telling us of what he knows. All that we are saying is all speculation and inuendos.:)
HE needs to slow down a bit. too many things in short time. but i support on all the people he has fired, he should just improve on his perceived nepotism.
Guys, let’s not be naive. FIRST why was the bank sold in a HURRY, the week before the election if there was nothing sinister about the way it was sold? The process of buying a bank cannot happen so quickly. Therefore, no proper documents of sale could have been available. And as expected, Sata found that there were no proper documents of this embarrassing. Sata being a man of action, acted on MORAL and ETHICAL grounds. This is in the interest of Zambians, let’s not fight against ourselves, please….
…. embarrassing DEAL.
We discussed this Magande. There is nothing to wait for if you have all the evidence before you. H.E has no time to waste on silly things like this.
I remember someone on here saying even for Zamtel, we shouldn`t waste our time, we have got Harrington on that case. Next please!
well 13 temper temper,if he has not time on the silly things why appointing a comission of enquiries?
MAGANDE SHUT YOUR STINKIN,ROTTING BIG MOUTH,IMWE BAFIKALA,WHO are supporting MAGANDE,WHERE WERE U,TOGETHER WITH MAGANDE WHEN THE BANK WAS HURRIEDLY SOLD.MAGANDE U DIDNT SAY ANYTHING THEN,AND TODAY YOU WANT THE PRESIDENT TO WAIST TIME WAITING FOR THE UNKOWN.DO U KNOW THE COST THAT WOULD BE INVOLVED.THERE ARE MANY THINGS THE PRESIDENT HAS TO DO,SO SPARE US TIME PLEASE,WE DONT HAVE TIME TO WAIST,GOING TO COURTS AND THE LIKE..THATS BULL SHI.T.LET THE PRESIDENT DO HIS JOB,HE IS ON THE RIGHT TRACK.
Ba LT pls protect people from insults. This is very primitive way of handling issue by pp who cant think so called Ke what ever. is he/she normal?
kekeke why do u yoself have such stinking words from yo mouth. you ought to be ashamed. why taking things so personal? tone down yo language my friend. i wonder wat u will be teaching yo children. or beta still never just have kids cos they will have such a horrible parent yuck!!
Let the buyers of Finance bank provided the documents for the sale of FBZ to the governent. What President SATA has done is short cut to prompt the buyers to produce all neccessary papers for the sale of the bank quickly. That is a good move Mr. PRESIDENT. thanx
You must know we dont work for 20yrs and still potholes on the road,ours is 90 DAYS ,CAN YOU FEEL IT,IT IS HERE
The possession and sale of Finance Bank started last year in December. It cannot be said to have been done in a hurry. The sale was also subject to various court challenges which failed. Due process was therefore followed. Some of the liabilities which were taken up by First Rand included pension dues running into millions of dollars that Mahtani could not account for. The unsound banking practices that Mahtani employed are well documented and if given the bank back he will continue to engage in the same.
Again zambians don’t get it. If you are told to investigate the sale of finance bank and you find there are no documents of sale. It should take 30 days to tell the president that. That is not sata way of doing things. He is a man of action period. The nation needs to move not to staginate on straight forward issues was the norm in the previous government.
Bank of Zambia made reports going back several years stating that Finance Bank was not being run professionally and ethically by Mahtani. That is why it was repossessed. Mahtani was chased from Malawi because of the same unethical behavior. Mahtani is clearly a crook and corrupt. Why did he not go through the legal route to recover the bank?
A bit of courtesy to potential investors would help.
Obama – Plse base your analysis on facts. The commision has not even been setup yet as the Justice Minister had not even started working!
LION, Mathani has been given the bank but HAS BEEN TASKED TO SHED LIGHT ON THE 30 BILLION KWACHA FINANCIAL SCANDAL INVOLVING GOVERNMENT FUNDS. Sata is right on spot, so let Mathani pay back the 30 billion to Government. Sata is cunning. He wants to give back to the people what is owed to them. Mathani may be smiling now but he has a lot of explanations to do. So don’t jump to conclusions.
It is heavely suspected RB and sons merely wanted to take over the bank as theirs using FNB, just imagine. I believe the commission of inquiry should go on despite the reversal so that we know why RB acted like that in haste. There is something they were hiding. That man must be arrested.
we all know that sata is ignorant, but what of those who get paid for advising him? this is corruption at it’s best.
SATAN for you. I dont expect the rule of law in PF govenment…More to come. i promise youl all.
# 17 LION,I concur with you,FBZ was not sold in a hurry,it appears some people have short memories.The repossession of FBZ by BOZ started a long time ago and despite several warning from BOZ to FBZ to follow FBR.
Magande is right here, we should not confuse support for our disgust with the corruption that was happening under RB with following proper processes that ensure wrong decisions are reversed. The President can not be allowed to continue making decrees, he needs to uphold the law and ensure that he is applying his mind before making decisions. Just because a transactions looks hurried and wrong does not mean you should not apply your mind in reversing it. Is it not possible that Mathani does have anwsers to make on insider trading? The president has been floating the law and the Constitution in these past weeks and even though we are supporters, it is time he knew that he was elected to uphold the constitution and to ensure that the country moves forward. His directives are breaking the law.
Was the bank sold in a hurry, really? How do we know. If there had been due process that took months to conclude, does having elections make it a hurried sale? Suppose the process was on schedule, elections or not. Do all things stand still because of elections?
If commissions of inquiries are costly, didnt the president know this before he asked for one? Did he only learn after giving the directive.
It is for the good of our nation that we should have a proper way of doing things. We should sleep comfortably knowing our president has advisors around him.
Guys stop this noasense of being paranoid. Sata has done the best things. You can not sale a bank at 27Billion Kwacha. Even HH is not worthy that. What about a big bank like FBZ??? We are doing the inquiry into ZAMTEL. With finance bank, we do not have time and resources to waste. Viva PF, Viva Sata.
#26 Tekto, well said.
Our president’s attitude to law was demonstrated during the 3rd Term bid in 2000-2001 when Sata and FTJ violently changed the MMD constitution to allow FTJ a 3rd term. Once that was done, they proceeded to change the Zambian Constitution to allow FTJ a 3rd Term. If it wasnt for a national protest, they would have managed. One would struggle to find a time MCS demonstrated respect for our national constitution.
The biggest test is, will MCS use his power to ensure that the New national constitution is enacted during his presidency?
yes i support Michael Chilufya Sata on certain isuues, but on this one i think he should have waited for the commission. these are some of mistakes presidents make. it will be an issue in 2016 election campaigns.
Wrong deal in the first place. The QUICKER IT WAS SOLD. Faster it has bee given. BUT Note one thing, Martani owes Zambians money and SATA will squeeze him. Jus watch the space.
Embarrassing for FNB
Zambians should just brace for worse. Welcome to your new Zambia, or should we say Kaponyaland. This is a one man show in government. Sata should just know that he also will be prosecuted for his wrongs. People should be as ruthless with him as he is with the people he is hunting down. What goes round comes round. His cabinet and senior govt is full of his relatives, tribesmen, drinkingmates, ganjamates and girlfriends. This is part of the DON’T KUBEBA. If you did not want to know then, now you know.The worst is yet to come.
Fyanshi ifyakulolela and continue spending unnecessarily on the commission when the truth shows itself up on the second day.
@30 ba kamba….MCS will be just over 80 in 2016, so I think he is not too worried about what will be an election issue for him particularly or wont be….(frankly neither should any of us be unless you all truly believe that an 80 year old should be in the running to govern our country,…..that is scary. If the 1st 14 days (at age 75!) are anything to go by then brace yourselves for even more senile, reckless, populist, and impulsive decisions – these may work for a while but the long term view… big picture and a sustainable economic model will surely give…. .
number 14: free advice to you, do not insult. Mr. Magande is a Zambian like you and he is entitled to his opinion. In case you do not know Zambia is the only “company or entity” where each one of us by virtue of being a Zambian and meeting the other basic conditions like not being insane or bankrupt can stand to be an MD, the other title is President! Each of us Zambians are stakeholders and we have a stake/interest in Zambia!
The embarrassing sale of Finance Bank by RBs’ government was shrounded in suspicion from the start. The bank directors insisted that credit suisse was ready to pump money into Finance Bank, so the bank was still liquid, but Rupiah was determined to destroy arch-enermy Mathani, hence the insider trading charges. The fact is, these did not warant sale of Finance Bank, but warranted reducing Mahtanis’ grip on Finance Bank. The fact that Finance Bank owed government money should have been used to leverage the decisions by central bank for his lose of part of his shares whcih could have been picked by local banks. H.E. Satas’ decision to reverse the sale of Finance bank for kick backs is welcome and Rajan Mahtani will have to pay the Zambian people one way or another. VIVA SATA”!
The truth is that Sata is driving with headlights off. He knows the direction but lacks capacity to uphold the rule f law. He is doing something right but wrongly done. The price? Loss of confidence in Zambain economy. Right now, Business Day is preparing a huge story on the likely drop in investor confidence in Zambia. It is a matter of time and we will all see sense in the need for wisdom on the part of MCS.
Now is my in turn to also blog. A few days after making the comminsion, evidence of documentation disppeared.Case closed, return to owner. But one question will always stand out. Why was finance bank sold ? Was it because Mahtan was breaking banking laws or was it polically motivated? FNB why did they rush to buy a ‘hot spot’? Did they see an easy buy? Already we have read about them saying it could have been expensive to start openning new branches.Reasonably speaking the all deal stunk of foul play.Maybe somethin we do not know happened. There is a lot more to this than meets the eye. Let all admit, we will never know the truth.
WHAT ABOUT THE FACT THAT THIS ZAMBIAN BANK WAS TAKEN OVER AND SOLD TO SOUTH AFRICANS FOR PEANUTSJ (most likely to mabunu) THAT SHOULD BOTHER PATRIOTIC ZAUMBIANS. THE FOREIGNERS WOULD NOT HAVE HESSITSTED TO CLOSE SOME NOT SO PROFITABLE BRANCHES LEAVING OUR PEOPLE UNEMPLOYED. Let Matanni pay government what he owes and keep the wealth he created NEXT?
:x:x:x:o:-?:-w:d:(:)
Mr Magande….The risk and reward did not pass to the buyer period,had it?,they would have come with the signed sale agreements.Please understand that we do not need to waste time and money.More over,who said we have to wait 30days for the report if it can be concluded in 3 hours and handed over to HE MCS? FBZL its time you listed the bank on LUSE also.
Abantu tabakatashepo, only a prostitute will for giving her good good sex.
If there is no evidence, do we need to wait for 30days only to say there are no documents?
How will you look like in the eyes of all the 13million Zambians?
Better that way, we dealing with 90days no time to waste. we dont need to wait for 20years or forever to see results.
Good decision MR president, so far very impressive.
Wait for what!!! that is why we have a problem – 90 days is too short to start waiting. Logically you want to wait but deal with the root cause first while you continue to dig deeper.
Do many people remember Commerce bank owned by RB and friends? RB was always envious of Finance bank because his bank collapsed due to bad management and inside borrowing by RB. The allegations on Mahtani were fake and finance bank was not under liquidation for the bank governor to sell it. We should learn to be proud of something Zambian, not always undervaluing assets and selling them cheaply and claim it to be development.
How many times are we going to wait for the commission of inquiry and do nothing. We had an inquiry on the sale of zamtel, what did we do with the results? RB shoved the results up asses and reappointed Siliya. Zambians are sick of inquiries without action and we need action fast to move forward. We have wasted so much money on commissions which do not achieve anything, like the NCC. We need the inquiry on the NCC, there is K250 billion wasted on people with nothing to show for!! Why spend more time talking about K27 billion, when we can talk about K270 billion?
let’s just welcome the idea of giving back FNB to the owner,we should always remember that law is law.when ruling people don’t take things for granted.a leader should have a heart of people,not doing things in the way you want to be done,let him pay back the FN,since his the one know where that money has
gonne.
So Seb Zulu doesnt have to bother doing the report now, since action man has already acted.
Sata needs to be wise
Just don’t look good on the president ,he needed to
Cover himself,10 years down the line this might be seen
Like abuse of power,not keeping your word
Speed kills,Mr President.Most Zambians have very high hopes in you.Dont disappoint them.Avoid the ‘know-it-all’ and ‘one-ball-better’ attitude.You are moving too fast!!!You may end up crush-landing.That’s not my wish
king cobra at work sure elo lwanya nomba
I want God to show Zambians the difference in the leadership we have had. they wanted change quite all right but this change will be worse. he is changing nearing every system in Government and he too will be persecuted Sata you will see. Hes so rough why should he disolve all things he found in place. he has fired all DCs and he thinks their families will vote for him after five years. any way this might his only chance. by then Ninkalamba namwe. this Sata is working on vengence and yet he had a rosary during camping just mocking God. I we Sata your judgement will be bad for you your body will be eaten by dogs. am telling you. change buka ponya wakwata and be a leader.
I am not Mr Maganda’s FAN but i 100% agree with him It is important to differentiate between problem analysis and decision making. The concepts are completely separate from one another. Problem analysis must be done first on FBZL sale transaction, then the information gathered in that process might have been used towards decision of reversing the sale of FBZL, Problem must be precisely identified and described. The President must avoid making decisions that will raise unacceptable questions in future, the investigations outcome would enable HIM (The President) have actual evidence to help him come up with a solution and to see exactly what HE is to accomplish and keep on a specific path.
Sata needs to slow down….U can’t change Zambia overnight! You scaring investors with your approach….remember copper is a waste asset
# 14 KEKEKEKE:
Ignorance is bliss, do us all a favor and go educate yourself before you comment on stuff you know nothing of… please!!! It is the likes of you why the rest of the world thinks Black People has no brain.