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Bank of Nevis International Limited, a 24.8 percent shareholder in Investrust Bank Plc, has filed a lawsuit against the Zambian government, challenging the bank’s compulsory liquidation.
The lawsuit seeks a judicial review and an order compelling the Minister of Finance and National Planning, Situmbeko Musokotwane, to establish an ad hoc tribunal.
This tribunal would allow the shareholder to contest the liquidation decision.
The legal action, represented by Chibesakunda & Co. Advocates, names the Minister of Finance, the Attorney-General, and the Bank of Zambia as respondents.
The applicant argues that the Minister failed to comply with Section 139(1) of the Banking and Financial Services Act (BFSA) by not convening a tribunal and neglected to set rules under Section 138 of the BFSA for appealing such decisions.
The shareholder is seeking an order of mandamus to compel the Minister to establish an ad hoc tribunal and to create rules for notifying appeals.
If granted leave to commence judicial review proceedings, the compulsory liquidation and asset sale of Investrust Bank Plc would be halted until the tribunal’s final determination or further court order.
Read More: 155 former Investrust Bank employees sue Bank of Zambia over compulsory liquidation
Between March 2021 and November 2022, Bank of Nevis International Limited acquired its stake in Investrust Bank through an investment of K30,362,359.84.
On April 2, 2024, the Central Bank took possession of Investrust Bank allegedly without consulting this significant shareholder.
Despite attempts by the shareholder to appeal the decision, the Minister of Finance reportedly failed to act in accordance with BFSA requirements.
On July 8, 2024, the Bank of Zambia announced the compulsory liquidation of Investrust Bank Plc and the sale of its assets.
The shareholder contends that the Minister’s failure to follow proper procedures has denied it due process, violating principles of natural justice.
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