ZANACO sale was through competitive tender,MD tells inquiry

ZANACO sale was through competitive tender,MD tells inquiry

Zambia National Commercial bank (ZANACO) managing director and chief executive officer Martyn Shouten says there was no violation of provision and restriction in the privatization of ZANACO.

Mr. Shouten has stated that the competitive tender process was used by the Zambia Development Agency in the sale of ZANACO.

Mr. Shouten has also stated that the privatization of ZANACO which took long resulted in the bank lacking strategic direction for a long time which caused the bank to start losing market share in key business areas like deposits.

On the issues raised by the commission of inquiry that the agreement between Rabo bank and GRZ was lopsided on the composition of the board, Mr. Shouten said Rabobank controls 49 percent shareholding in ZANACO making it the largest shareholder in the bank.

He says it is because of the shareholding stake that makes it logical that the single largest investor who is also a strategic investor should have an important responsibility in the management of the affairs of the business.

The ZANACO chief executive officer made these remarks when he appeared before the commission of inquiry on sale ZANACO this afternoon.

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