Standard Chartered Bank Zambia Plc under the guidance and leadership of Andrew F Okai and Chairman Michael Mundashi has been given a 14 day ultimatum to pay K4m as penalty fee for failing to increase their free float to 25% from the current 10%.
A free float is the number of company shares that are available to the public for trade.
Meanwhile managing director Andrew Okai is said to be trying to use the Ministry of Finance to coerce the Lusaka Stock Exchange ( LUSE) to withdraw the charge. According to insiders, Deputy Finance minister Mvunga phoned LUSE telling them that Standard Chartered Bank Zambia is a big funder for the PF so LUSE)m Must withdraw the charge.
While almost all non compliant companies and the government itself (through ZCCM IH) have taken steps to comply with this requirement, Stanchart Zambia has, with no surprise, been defiant and refused to increase its float, bank sources have disclosed.
Each of the seven director has been fined K500,000 while the company itself has been fined K500,000 bringing the total to K4m.
Another source told the Watchodog that Minority shareholders must be prepared to receive less dividends with such penalties being imposed on their bank.