Monday, May 12, 2025

Bankers spurn Zambian Airways probe invitation

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THE Bankers Association of Zambia (BAZ) has said that it has no authority to investigate alleged financial irregularities in the running of Zambian Airways which suspended operations last month.

BAZ chairman, Saviour Chibiya said in an interview in Lusaka yesterday the association’s constitution did not allow it to investigate complaints coming from shareholders regarding the operations of a company.

The Post Newspaper, who are shareholders in Zambian Airways, last week invited the BAZ and other professional bodies as well as members of civil society to investigate the dealings of the airline as the police started a separate probe.

“We really do not have the authority to handle that issue. These issues do not fall under our ambit.

“Constitutionally, BAZ deals with issues relating to customers and a specific bank or a bank against another bank,” Mr Chibiya said.

On Sunday, the Zambia Institute of Chartered Accountants (ZICA) said the Zambian Airways shareholders did not have the authority to invite independent investigators to examine the operations of the company.

ZICA president, Chintu Mulendema said only the creditors of the company who were aggrieved could invite qualified auditors appointed by a legally formed institution to undertake such an investigation.

Meanwhile, the MMD has said investigating the operations of Zambian Airways would require the services of specially trained forensic auditors and not just any member of society.

Reacting to the invitation by the shareholders of Zambian Airways for the party to join the team of investigators, MMD legal committee chairperson, Bwalya Chiti said probing the operations of the airline was not an easy thing.

Mr Chiti said the MMD felt that such as invitation should come from aggrieved parties such as creditors of the airline and should be directed at qualified forensic auditors who had the capacity to do a competent job.

“In this case the shareholders are not aggrieved. In fact, the shareholders delegated the directors of the company to represent them and these must be accountable to shareholders and the nation,” he said.

Mr Chiti said the party did not have the skills to undertake the forensic audit and would leave it to the law enforcement agencies.

[Times of Zambia]

46 COMMENTS

  1. let them point fingers at each other, for all I care they are all thieves and they all know exactly what happened hence the finger pointing…..Sad indeed!

  2. Directors have responsibilities imposed by companies act and corporate governance good guidance. Among them are the need to prepare accounts which show a true state of affairs as well as ensuring controls are in place and reviewed for effectiveness. Did they do this? – simple ! If not, they are culpable. To borrow such sums of money i assume they had audited accounts, so the auditors must have given an opinion. The auditors may also be culpable of professional negligence. We need to overhaul or corporate governance environment if our capital markets are to grow and contribute to our economy. The smoke screen being created by the post is a waste of time.

    • I agree. And why have the creditors remained quiet? They haven’t applied for seizure orders for assets used as collateral or force the airline into bankruptcy.

  3. Zedian airways is trying to muddy the water – this gives the impression they are being persecuted when in fact their down fall is purely down to BAD management – lawyers thinking they can run airlines in between task force cases. Sorry but business does not work that. See big banks in the US that collapse deven under the the watchful eye of their overpaid, unimmaginative chief execs.

  4. i am sure it is because there wont be anything good out of the report!! and some people already know the outcome – no wonder the confusion!!! What is the outcome for? For who? So the airline can resume business? What is the purpose? For someone to punish someone? If it s important they could have started the exercise two weeks ago I presume, why talk when there is important work to be done…. BA LABILA AKU M’PANDO

  5. There is a lot mud in this all thing. How long has Zambian Airways been declaring loses? Who has been auditing their accounts (as a statutory obligation)? How come they were given the loans looking at how the company was insolvent? What was used as collateral for the loans? So the Directors should not be calling civil society organisations to come and the audit. I think there are laid down procedures that has to followed to come up with a true reflection of the same. Let not everyone be involved in the matter while there government wings that are responsible for looking at the operations of private companies. It is now just turning into one big political circus.

    • Mwasosa,

      i thought the govt had a body that sees the operations of private companies. This is why ama employees balabanyengelela because responsible govt institutions dont work deligently.

  6. What the Post did was merely to challenge anybody who suspects any wrong doing by ZA to come forward and audit the accounts. This was a response to allegations and innuedo from govt ministers and MMD officials that there was something murky about the collapse of the airline. The challenge was to the accussers to put up or just shut up!

    • Clarification sought – are the ZA shares owned by Mmembe or by the post? There is a distinction there. If by Mmembe, he should not use the post, his other business to do dirty work. Are you suggesting that the accusers were Zica and Baz, i doubt that very much. I gaurantee you, if anyone had said/written anything libelous or untrue, Mmembe and co would have been quicjk to sue.

    • No. ZA was owned by the Nchito brothers. Later they sort more capital which they got from the Post and the American holding company of National Milling Corporation. Nowhere in my statement have I said ZICA or BAZ are the accusers. Would you mind reading what you are responding to!

  7. Apparently ZA does not own, but merely lease it aeroplanes. How then did they manage to get a loan with no security? I doubt it was on the strenght of their cashflows?
    The credit risk managers at the bank dropped the ball big time. Either way, someone does have to pay as this impacts not only Mmembe but the Bank, Insurance comapnies, ZA creditors, ZA employees/families and employees of ZA creditors.

  8. Those who talk the loudest about plunder are the worst culprits. Let mmembe and his friend Nchito be probed as well. interesting for these special ones

  9. abaiche katwishi ngababikanakwisa those tuma nice green uniforms.

    Yaba kwena pa zed we will eva do right?
    How true is it that abena Nchito even have money to waste on body guards? pa zed body guard atase. Nabalya ba presido from that small party (mumba something) ati he has body guards. Actually his guards just help him flip bible passeges when they go to church palya pa st pauls UCZ. pa zed

  10. “BAZ chairman, Saviour Chibiya said in an interview in Lusaka yesterday the association’s constitution did not allow it to investigate complaints coming from shareholders regarding the operations of a company.”

    On the spot. The POST, the Undereducate’s current Imagebuilders and mouthpiece, made a terrible mistake that has shown the whole world that they are ignorant just like the person they are trying to impose of the whole Nation as a parallel anarchy government to the democratically elected GRZ of President RB Banda.

    Please the POST, just concentrate on getting the Country Zambia our money back and in payments so that it can be taken to developmental projects to improve our…

  11. I warned before to be careful not to allow certain people to be de facto replacement of our elected leaders; that the post is selecting its sympathisers to issue statements in its defence, e.g. the disgruntled hapenga kabeta who is an employee of ZICA and has no authority to speak on its behalf – see the comment from the president of ZICA? See the comment from LAZ Vice President? Zeds, we are now being guided by these authorities and not rubble rousers. Contrast this with the rubbish that the post is writing now? Kusabaila! The post started this mess about investigations, what are they afraid of for ZA to be probed? What is good for the goose (dora) is good for the gander (m’membe).

  12. 1st of all, I must admit that I have sympathies for Mutembo Nchito. What beats me is how that intelligent young man got entangled with rouble rousers. Running an airline is a public relations job and the last thing you want is to have someone speaking for you with a foul mouth. ZA should not have gone under but for this association. Someone please whisper to mutembo to distance himself from these characters. He is still young and can resurrect himself. Zed needs many of such ambitious young men but they should not allow themselves to be used by people with selfish agendas.

  13. I have noticed and shudder to even feel the hatred there is in these comments on The Post and its investment in ZA. Can someone tell me what bad thing The Post and its editor M’membe did in investing in Zambian Airways. Was it in the investing itself or in M’membe subsequently becoming part of the board of directors? It gives me an impression that because the Post is revealing bad things being done by those in govt, it should be nailed for its investment in ZA; that a way should be found to link The Post and Fred to the alleged wrongs in ZA. Let logic and reason guide our comments. Now ZA is now overshadowing what DORA and RP Capital have done. Ifyashala lundeniko

  14. the post and the nchito brothers must realise that what is happenning is what they have being to other pipo for a long time, and this is always leaking issues to the press and trying others in the court of public opinion. as much as they want natural justice for themselves, they should also let others have the same.

  15. Yeah I LOVE This, It’s time for Fred with his POST to go. We have had enough. GO RB GO RB …… and wish u the best for ever more

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