Zambia: BoZ terminates Credit Suisse, six others stake in Finance Bank

Zambia: BoZ terminates Credit Suisse, six others stake in Finance Bank THE Bank of Zambia (BoZ) has terminated all shareholders’ interests in Finance Bank Zambia Limited (FBZ) including the 40 percent stake owned by Credit Suisse (Netherlands) B.V.

According to a Government gazette No 815 of 2010, posted on the BoZ website, the bank says the acquisition of 40 percent stake by Credit Suisse in FBZ, appears to be a lending transaction because of the underlying agreements that were not disclosed to the bank.

The central bank says among other things, the agreements guaranteed a return to Credit Suisse on the investment.

The gazette states that other shareholders apart from Credit Suisse Investment (Nederland) B.V whose contracts were terminated are Finsbury Investment Limited of Ndola, Clarkwell Limited of Tortilla and British Virgin Islands.

Others are Job Albert Samuel of Canada, Estate of the late Pat BwalyaPuta of Ndola and Patrick Chamunda.

“It is hereby notified for public information that the BoZ in exercising powers contained in section 81(i) (c)( i) and (ii) of the Banking and Financial Services Act (BSFA) CAP 387(“ BFASA”) did on the 10 th day of December, 2010 take possession of FBZ with effect from 16:00 hours.

“It is further notified that in exercise of the powers conferred upon the BoZ by section 84 A (g) of the BFSA, and pursuant to the Resolution and Order of the BoZ board passed on December 10, 2010, the bank did on the 22 December 2010 terminate with immediate effect the shareholder interest in FBZ of all and each of the listed shareholders,” it read in part.

And BoZ has started the process of evaluating firms that showed interest to acquire FBZ after the process of the bank’s sale began last month.

BoZ head of public relations Kanguya Mayondi said the public will soon be informed on the outcome after the evaluation process has been completed.