Zambia probes sale of Zanaco to Rabobank

* Says to determine how sale was done

* Investigating whether sale met privatisation requirements

LUSAKA Jan 29 (Reuters) - Zambia is investigating the 2007 sale of a 49 percent stake in state-owned Zanaco Bank to Netherlands lender Rabobank, in yet another case that could see a reversal of a deal involving foreigners.

President Michael Sata has chipped away at several deals made during the administration of his predecessor Rupiah Banda, after being elected in September on a promise to fight corruption.

On Sunday, Justice Minister Sebastian Zulu said a government commission would determine whether the sale of Zanaco was legal and met privatisation requirements.

"We are going there with an open mind to hear evidence, as we did with Zamtel, starting on Wednesday this week," Zulu said, referring to the inquiry.

Zanaco is majority-owned by the government and has the largest network of branches in the country.

Fransce Verdeuzeldonk, a spokeswoman for Rabobank, said "Rabobank knows that the new president is looking at all these deals, and our deal is being looked at as well."

In November, the Zambian government ruled a 2010 sale of fixed-line operator Zamtel to Libya's LAP Green Networks was illegal.

This week it dissolved the board of Libya-controlled Zamtel and appointed a new acting CEO, a day after it announced plans to seize 75 percent of Zamtel from LAP Green Networks.

In a statement issued on Friday Zanaco said: "We look foward to the review of the privatisation process of Zanaco, which was extensive and took place over a period of many years." (Reporting by Chris Mfula; Additional reporting by Sara Webb in Amsterdam; Editing by Sophie Walker)