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Andrew Sardanis was the first to start a local bank
In 1991, there was a merger between the Meridien banks started by Sardanis and a network of 11 banks he bought from the French liquidator of Banque Internationale pour L'Afrique Occidental (BIAO) giving us Meridian BIAO Bank.
In 1991, there was a merger between the Meridien banks started by Sardanis and a network of 11 banks he bought from the French liquidator of Banque Internationale pour L'Afrique Occidental (BIAO) giving us Meridian BIAO Bank.
Meridien BIAO was strangely registered in Luxembourg.
With $100m capital, it was owned 74% by Meridien International Bank Ltd (MIBL), which had a banking licence in the Bahamas. The AfDB held a 10% stake and the Banque Ouest Africaine de Developpement (BOAD) had a 16% stake.
With $100m capital, it was owned 74% by Meridien International Bank Ltd (MIBL), which had a banking licence in the Bahamas. The AfDB held a 10% stake and the Banque Ouest Africaine de Developpement (BOAD) had a 16% stake.
The plot thickens.
MIBL was owned by Meridien Corporation, which was in turn owned by ITM International, a Luxembourg-registered private company controlled by the Sardanis family trust.
MIBL was owned by Meridien Corporation, which was in turn owned by ITM International, a Luxembourg-registered private company controlled by the Sardanis family trust.
At its peak, Meridian BAIO bank is said to have had a presence in Zambia, Kenya, Swaziland, Tanzania, Gabon, Ghana, Burundi and London.
Out of Africa and for Africa and taking on on the old colonial banks on its way, the banks' executives had wind on their sails.
Or did they?
Out of Africa and for Africa and taking on on the old colonial banks on its way, the banks' executives had wind on their sails.
Or did they?
It is said that a lack of liquidity was the group's kryptonite & the merger just compounded to this as funds were now being taken from profitable banks in anglophone countries to support less profitable operations in francophone countries. The 1994 CFA franc devaluation sealed it
Problems started with the group's financial transactions between Meridien BAIO and ITM, the private company controlled by Sardanis involved in mining, trading, and construction.
They also unsuccessfully launched a MeridienCard to easy carrying cash for their customers traveling.
They also unsuccessfully launched a MeridienCard to easy carrying cash for their customers traveling.
In 1994 after noticing illegal deposit taking place, Bank of England suggested MIBL and its other related entities be removed from the UK.
The following year, Meridian moved its administrative offices from London to Lusaka. Difficulties at the bank followed along though.
The following year, Meridian moved its administrative offices from London to Lusaka. Difficulties at the bank followed along though.
This would later force the Bank of Zambia to step in and provide as much as K40b liquidity into the bank in an effort to keep it floating.
Later, however, Sardanis would claim that it was Ronald Penza's (Minister of Finance) interference that caused the collapse of the Bank.
Later, however, Sardanis would claim that it was Ronald Penza's (Minister of Finance) interference that caused the collapse of the Bank.
Swaziland would also raise red flags after the local branches there ran into liquidity problems and their Central Bank took over the bank.
Days later Kenyan shut down Meridien BIAO in Nairobi.
Weeks later, BoZ also took over the running of the Bank.
Death blow.
Days later Kenyan shut down Meridien BIAO in Nairobi.
Weeks later, BoZ also took over the running of the Bank.
Death blow.
Tanzania, Burundi and Gabon authorities would also later take over the operation of the bank in their respective countries.
Only Ghana successfully managed a rescue package for their bank.
As litigation followed, deposits from all the banks would find their way to the Bahamas.
Only Ghana successfully managed a rescue package for their bank.
As litigation followed, deposits from all the banks would find their way to the Bahamas.
