Livestock Corperative accused of breaking financial law

Members of the Livestock Services Cooperative Society have called upon the Bank of Zambia to investigate the cooperative society for flouting the law by operating as a financial institution without a licence.

The members are in the process of seeking legal action against the cooperative society.

Information in the possession of ZWD shows that Livestock Services, which is licenced as a cooperative society, has been issuing undeclared loans to several farms and private institutions against the provisions of the Banking and Financial Services Act, Chapter 387 of the Laws of Zambia.

The Act provides for the regulation of the conduct of banking and financial services; to provide safeguards for investors in and customers of banks and financial institutions and to provide for matters connected with or incidental to the foregoing.

Cooperative members are complaining that the cooperative society has issued loans to a long list of institutions — including farms and schools — loans which were not approved by the Livestock Services board, but were unilaterally given to entities especially by the former general manager Dick Muijs, a Dutch national.

Muijs himself was recently under investigations by the Immigration Department under the Ministry of Home Affairs for purchasing assets in Zambia while he was under an employment permit.

He flouted local immigration regulations by purchasing a farm in Makeni using named proxies when he had no residence permit, contrary to regulations. Regulations state that foreign nationals cannot acquire assets in Zambia without a valid residence permit

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