The Bank of Zambia on Wednesday announced the liquidation of Ecspont Financial Services Limited, trading as MyBucks, in an official statement.
This recent move by the apex bank is a follow-up action of the resolution taken by the bank’s board of directors on February 16 to seize MyBucks.
Protecting depositors and creditors
According to the bank, the liquidation will protect the interests of both depositors and creditors.
The liquidation, approved by the board of directors of the Bank of Zambia in a meeting held on Tuesday, is in accordance with Section 73 of the Banking and Financial Services (Amendment) Act, 2020, as read in conjunction with the Banking and Financial Services Act 2017.
According to the approved Statement of Affairs, MyBucks’ total level of bankruptcy as of February 16, 2025, stood at K141.6 million, representing a capital shortfall of K172.2 million.
To further supervise the liquidation process, the Board has authorised the employment of Mr. Chimuka Mweetwa, Senior Analyst-Laws, Regulations, and Liquidations, as Liquidation Manager, with effect from June 3, 2025.
“In accordance with Section 127 of the Banking and Financial Services Act, 2017, the Bank of Zambia wishes to notify depositors, directors, shareholders, creditors, and any other interested parties that Ecspont Financial Services Limited (T/A MyBucks) has been placed under liquidation,” the bank stated.
MyBucks declared insolvent in February
Techpression had reported in February that the Bank of Zambia intervened to take control of Ecsponent Financial Services Limited, also known as MyBucks Zambia, over insolvency— the company has run out of money and can no longer pay its debts.
According to the bank, the goal is to avoid the institution’s “disorderly exit” which could collapse the nation’s financial system, if not well-managed.
During the possession period, the bank vowed to prepare a statement of affairs and undertake appropriate measures as prescribed under Section 73 of the BFSA.
The Bank of Zambia holds the constitutional authority to oversee and regulate financial companies including banks and loan providers, ensuring the safety of public funds and overall financial stability.
When a company like MyBucks Zambia can’t meet its financial obligations and becomes insolvent and has no money left, the law empowers the Bank of Zambia to intervene before the situation gets worse.
The apex bank has demonstrated its dedication to preserving the stability of the financial system and safeguarding the interests of creditors and depositors through its action.