Collapse of financial institutions calls for comprehensive reforms, sanctions on offenders

The recent closure of financial institutions underscores the critical need for comprehensive reforms to uphold the integrity and stability of the financial institutions.

The Economic Freedom Fighters (EFF) Party Secretary-General, Changala Siame, said this in Lusaka on Tuesday.

Zambia Monitor reported recently that the Bank of Zambia had taken over Investrust Bank, Development Bank of Zambia and Better Now Finance Company due to insolvency.

Siame said the closure of the banks had significant economic ramifications.

He stated that these included job losses and disruptions to financial services.

“We are deeply troubled by reports revealing unethical actions by certain management figures, including the inappropriate donation of K100,000 to the First Lady,” he said.

Siame stated that such behavior not only disregards fiduciary responsibilities but also reflects a disturbing culture of impunity and corruption within our banking sector.

“The EFF Party demands swift legal action against those responsible for such misconduct,” he demanded.

Siame urged regulatory authorities and law enforcement agencies to conduct thorough investigations and prosecute individuals found guilty of breaching their duties or engaging in fraudulent activities.

He noted that accountability was essential to rebuild public trust and safeguard the integrity of the banking system.

“Furthermore, the decision to donate substantial sums to political figures amidst financial instability raises serious governance concerns,” Siame said.

He called on regulatory bodies to strengthen monitoring and enforcement capabilities to prevent future abuses and uphold ethical standards.

Siame said beyond addressing immediate repercussions, the EFF Party advocates for systemic reforms to enhance transparency, accountability and ethical conduct across the banking sector.

“This includes implementing robust regulatory frameworks, rigorous oversight mechanisme and measures to promote financial inclusivity and stability,” he stated.

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