The Bank of Zambia (BoZ) has announced that Zampost Microfinance Limited (ZMFL) and Pan African Building Society (PABS) have with immediate effect been put under compulsory liquidation.

According to a statement issued via Bank of Zambia (BoZ) Deputy Governor for operations, Dr Francis Chipimo, the two struggling financial institutions were found to be insolvent as defined by the Banking and Financial Services Act (BFSA) at the time of possession in July, this year.

“Following the possession of ZMFL on July 19, 2019, the Bank of Zambia has prepared a statement of affairs of the assets and liabilities (statement of affairs) within the 90 days stipulated in section 72 of the Banking and Financial Services Act, 2017 (BFSA). The statement of affairs has determined that ZMFL was, indeed, insolvent, as defined by the BFSA, at the time of possession. To this effect, in line with the requirement of section 127(2) of the BFSA, the Bank wishes to inform the shareholders, directors, depositors, creditors and any other interested party that ZMFL has been placed into compulsory liquidation, with immediate effect,” Dr Chipimo announced.

“Following the possession of PABS on July 19, 2019, the Bank of Zambia has prepared a statement of affairs of the assets and liabilities (statement of affairs) within the 90 days stipulated in section 72 of the Banking and Financial Services Act, 2017 (BFSA). The statement of affairs has determined that PABS was, indeed, insolvent, as defined by the BFSA, at the time of possession. To this effect, in line with the requirement of section 127(2) of the BFSA, the Bank wishes to inform the shareholders, directors, depositors, creditors and any other interested party that PABS has been placed into compulsory liquidation, with immediate effect.”

Dr Chipimo, who is also acts as the Registrar of Financial Service Providers, urged interested parties to file an appeal within 30 days against the liquidation order to the court.

“Shareholders, directors, depositors, creditors and any other interested party may within 30 days from the date of this notice file an appeal against the liquidation order to the court, stating the grounds for objection, in accordance with section 127 (3) of the BFSA. During the liquidation period, the activities will be restricted to realization of assets and discharging of the institution’s obligations. The Bank has since appointed a liquidation manager to oversee the activities of the liquidation processes,” stated Dr Chipimo.