ZAMPOST FINANCE CLOSURE AFFECTS 200 SAVERS

OVER 200 depositors have been affected by the closure of Zampost Micro-Finance Limited whose licence was recently revoked by the Bank of Zambia (BoZ) for insolvency.

BoZ recently revoked the licenses for Zampost MicroFinance and Pan African Building Society (PABS) Limited for insolvency.

In an interview at the just ended Lusaka Agriculture and Commercial Show, BoZ Director for NonBank Financial Institutions Supervision Freda Tamba said the central bank was currently conducting a 90day verification excise for the two firms.

Ms Tamba said the financial sector had in the recent months witnessed some closures by both micro-financing firms and bureaus de change due to various reasons.

“About 210 depositors have been affected under the Zampost Micro-Finance. The shareholder of Zambia Post Corporation is the Ministry of Finance. So currently as the central bank we are verifying. We have to look at the records and then issue a statement,” she said.

Some bureaus, Ms Tamba said, voluntarily surrendered their licences while others were revoked partly because they did not comply with BoZ procedures.

Ms Tamba said institutions such as Finance Building Society had merged with Micro Financing Zambia to continue its operations.

“Finance Building Society has closed down, it just restructured its licence which ended but the institution is still continuing while for Direct Financial Leasing it surrendered its licence.

And BoZ Deputy Governor for Operations Francis Chipimo emphasised that the central bank moved in to safeguard public interests.

Dr Chipimo said during this period, the central bank would prepare statements on Zampost Micro Finance Limited and PABS Limited’s assets and liabilities and take any other action it may deem fit.

Under the law, BoZ is empowered to take over any financial service provider where such a provider fails to comply with the BoZ Act and any rule or regulatory statement issued in accordance with the applicable law.