By SHERRY CHABALA
THE Development Bank of Zambia (DBZ) was abused by politicians and it is heartening that the Bank of Zambia (BoZ) has taken over the bank, Imanga Wamunyima has said.
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Mr Wamunyima, the Nalolo Member of Parliament says the Central Bank has made a timely decision in taking over DBZ because it had long stopped operating profitably.
In an exclusive interview, Mr Wamunyima said for a long time, the financial institution had been a subject of abuse especially by politicians he said had turned it into their own cash cow.
Mr Wamunyima the Party for National Unity and Progress (PNUP) lawmaker said with DBZ under the Central Bank, there was hope that the financial institution could be recapitalized and begin to operate profitably.
“The major problem which DBZ has been facing is the abuse by the politicians. The bank has not been working according to its mandate and this negatively affected its operations. So with this take over by the central bank, we are hoping that the bank starting operating according its mandate which will help in improving especially the welfare of the SMEs,” Mr Wamunyima said..
Mr Wamunyima however said the Bank of Zambia should not take over DBZ permanently but should instead guide the management that would come how to recapitalize the bank.
Mr. Wamunyima cautioned that the danger of taking over DBZ by the Central Bank permanently would not be the best solution to improving the operations of the bank.
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