ZANACO CONFIRMS THE START OF A GOVERNMENT PROBE

Zambia National Commercial Bank –ZANACO- has confirmed that it is under investigations following the partial sale in 2007.

This comes after the setting up of a commission of inquiry on 20^th December last year.

The Bloomberg has further reported that the financial institution has, meanwhile, expressed fears that this might have, what it has described as ‘material effect’ on its share price.

ZANACO Spokesperson, Chana Musakanya has further hinted that the bank will cooperate fully with the investigating team, adding that it looks forward to the review of the privatisation process.

In 2007, ZANACO’s 49 per cent shareholding  was acquired by the Utretcht-based  Rabobank Nederland, in a deal, which then manifested public and stakeholder controversy.

However, 5 years after the transaction, the bank, which seems to have now settled, has further listed on the Lusaka Stock Exchange, following completing an initial public offering in 2008.

But Information Minister, Fackson Shamenda says the investigation is a routine inquiry and aimed at simply establishing that all procedure was followed when it was sold to Rabobank.