LSA Group denies wrong doing in shut Intermarket Bank

By NATION REPORTER

LAWRENCE Sikutwa Group (LSA) of companies has refuted allegations that they corruptly acquired shares from Zambia Industrial Commercial Bank (ZICB), the successors of the Intermarket Banking Corporation.

LSA corporate communications manager Patience Chisanga explained that in attempting to rescue Intermarket, the Bank of Zambia offered the large depositors who were caught up in Intermarket Bank options that included equity in the new bank.

Ms. Chisanga said LSA chose to convert their deposits into equity on the basis of which the Group took a six percent interest in the new ZICB.

She was reacting to allegations in an online article that accused the LSA chief executive officer Lawrence Sukutwa of acquiring shares in ZICB using his position on the Industrial Development Corporation (IDC) board where he served as finance and administration chairperson.

“If it is the shareholding in Intermarket which raises the notion that there could have been corrupt practices surrounding IDC and the Group, we wish to put on record that in attempting to rescue Intermarket, the BOZ offered the large depositors who were caught up in Intermarket when it took over options to save the investments.

“The options given included the payment of all depositors up to K200,000,Corporate depositors with balances in excess of K200,000 could choose between a 40 percent haircut or conversion to equity provided that the balance was not less than K1 million and lastly was that residual balances converted into equity,” she explained.

She further clarified that at the time the issue of the Intermarket Bank rescue scheme was floated by the Bank of Zambia, Dr. Sikutwa had already vacated his seat on the IDC Board.