Friday, December 10, 2010

BOZ TAKES OVER THE RUNNING OF FINANCE BANK ZAMBIA LIMITED

THE BANK OF ZAMBIA HAS INDEFINITELY TAKEN OVER THE RUNNING OF THE EMBATTLED FINANCE BANK ZAMBIA LIMITED.
AND MR. LEONARD HAYNES HAS SINCE BEEN APPOINTED AS ITS INTERIM CHIEF EXECUTIVE OFFICER FOLLOWING THE REMOVAL OF THE INCUMBENT OFFICERS WHO HELD VARIOUS SENIOR POSITIONS.
ANNOUNCING THE DEVELOPMENT TO JOURNALISTS THIS EVENING BANK OF ZAMBIA GOVERNOR DR CALEB FUNDANGA SAID THIS HAS BEEN DONE WITH FULL APPROVAL OF THE BOARD OF DIRECTORS AND BASED ON THE INSPECTION FINDINGS AT FINANCE BANK ZAMBIA LIMITED.
DR FUNDANGA EXPLAINS THAT THE MOVE IS IN LINE WITH ITS POWERS AS CONTAINED IN SECTION “81 CLAUSE TWO SUB SECTION A” OF THE BANKING AND FINANCIAL SERVICES ACT CHAPTER 387 OF THE LAWS OF ZAMBIA.
HE ADDS THAT THE SUPERVISORY ACTION THAT HAS BEEN TAKEN FOLLOWS THE FINDINGS FROM THE INSPECTIONS WHICH WERE UNDERTAKEN BETWEEN OCTOBER 2009 AND OCTOBER 2010 WHERE A NUMBER OF SERIOUS BREACHES OF THE BANKING AND FINANCIAL SERVICES ACT WERE OBSERVED.
DR FUNDANGA STATES THAT THE POSITION IS TAKEN TO PROTECT FINANCE BANK ZAMBIA LIMITED FROM FURTHER DAMAGE WHICH HAS BEEN CREATED BY SHAREHOLDERS, DIRECTORS AND SENIOR MANAGEMENT, WHO HE SAID HAVE FAILED IN THEIR DUTIES TO COMPLY WITH THE LAW, GOOD GOVERNANCE AND MANAGEMENT PRACTICES.
AND DR FUNDANGA STRESSED THAT GOVERNMENT WILL GUARANTEE ALL GENUINE DEPOSITS IN AND OTHER GENUINE LIABILITIES OF FINANCE BANK ZAMBIA LIMITED AS WELL AS ENSURE THAT THERE IS STABILITY IN THE BANKING SECTOR AS THERE WILL BE NO DISRUPTIONS TO THE BANK’S COMMERCIAL AND PERSONAL BANKING SERVICES.
THE BANK OF ZAMBIA SAYS IN ORDER TO ENSURE SMOOTH POSSESSION PERIOD, IT HAS BEEN APPOINTED AS ITS AGENTS WHO HAVE SINCE BEEN DEPLOYED ACROSS ALL BRANCHES, SECONDED STAFF FROM FIRSTRAND LIMITED TO MANAGE THE OPERATIONS OF FINANCE BANK.
ENDS////

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