By CHATULA KANGALI –
THE  Bank of  Zambia (BoZ) has  finally closed and  put under compulsory liquidation  three  financial institutions for failure  to comply with  the  Central  Bank’s  directives.
The three financial institutions are, Genesis Financial, Cetzam Financial Services Plc.   and Commercial Leasing Zambia Limited.
This follows an earlier move by BoZ in May this year, when it took over possession of the three financial institutions for bankruptcy and failure to comply with the Central Bank’s directives.
According to a press statement, the Central Bank closed the financial institutions in accordance with section 101 of the banking and financial services Act under Chapter 387 of the Laws of Zambia.
“The Bank of Zambia  wishes to announce that  following a  board resolution passed on August  2,   this  year  at  16:00 hours,  Genesis  Financial , Cetzam Financial Services Plc  and Commercial Leasing Zambia Limited, have  with  immediate effect  been  closed and placed under compulsory liquidation,” the statement  indicated.
The statement added that a manager would be appointed by the Central Bank to be in charge of the liquidation process.
It stated that during the liquidation process,  business operations of the   three  companies would be  restricted  to  realisation of assets and discharge  of obligations  of  the  respective  firm.
“ Further,  in accordance with section 101  part three  of the banking  and  financial services Act,  directors, shareholders, depositors and creditors  of the  three affected institutions have  30 days from the date of this notice to file an obligation to the liquidation or appeal to the  court,” the statement stated.