Power and Politics

EFF alleges Investrust Bank’s financial records unaudited for 3 years, accuses BoZ of laxity


The Economic Freedom Fighters (EFF) has expressed concern over what it termed Bank of Zambia’s (BOZ) failure to adequately supervise financial institutions.

EFF Secretary-General Changala Siame, while noting that the Central Bank had responsibility for regulating and supervising financial institutions, alleged in a statement on Saturday that Investrust Bank, a wholly owned Zambian bank under the Industrial Development Corporation (IDC) had not released its audited financial statement in the past three years from 2020 to 2022.

Read more: Development Bank of Zambia fails regulatory test, taken over by Central Bank (See other decisions)

Changala said this was based on the report by the Bank of Zambia titled the Zambia Banking Sector Competitive Landscape Review 2022, the 5th edition.

“According to the Banking and Financial Service Act, 2017, section 92 states that; a financial service provider shall publish, in a newspaper of general circulation in Zambia, its quarterly financial statement and audited annual financial statements,” he said.

Changala said BOZ through the Department of Bank Financial Institutions Supervision had not undertaken its mandate seriously, as it reportedly allowed a bank that takes deposits from the public to go for three consecutive years without being audited.

He said it was for this reason the country witnessed the closure of the Development Bank of Zambia (DBZ) as a result of lack of prudent supervision by the Bank of Zambia.

“However, as Economic Freedom Fighters-EFF this has not caught us unaware as this is a trending culture in the New Dawn government of obliterating the law,” Changala alleged.

He also alleged that the 2022 Auditor-General report omitted the audit for Constituency Development Funds (CDF) an act which was against the law.

Changala reminded all public institutions to take their roles seriously and abide by the rule of law.

“Otherwise we will take legal action against these institutions to realign their functions.
Wherever we want to go, our feet will take us there,” he said.

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