Satabank to get new owners

A new group of investors have shown an interest in purchasing Satabank, effectively throwing the bank a lifeline.

BusinessToday reported on Thursday that a law will in the next few days be passed to allow the setting up of a company which will be taking over the process of due diligence over dubious bank accounts, subsequently clearing them from banks which are facing situations concerning shortcomings in their operations, such as Satabank.

The bank's administration will remain the job of the competent audit company appointed by the financial regulator - Ernst & Young - but the auditors' scope will be significantly narrowed, the newspaper said.

A senior source close to the Finance Ministry told the newspaper that the fees meted out by Ernst & Young made sense in the preliminary stages, but in the long term would have led to the collapse of Satabank. Once the new owners take over, the costs will be much more reasonable.

While the transition to the new owners takes place, Ernst & Young will be responsible for the necessary supervision.

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