A WITNESS has testified that despite The Post Newspapers Limited and JCN Holdings signing an undertaking to pay back the K14 billion debt and having documents relating to the same, the duo failed to so.
?And another witness, Development Bank of Zambia (DBZ) managing director Abraham Mwenda testified that The Post Newspapers and JCN Holdings were liable for the obligation they assumed as shareholders.?
DBZ head of credit Hephzibah Nainwiindwa Beyani, 47, of house number 953 Y2K, New Avondale, told the court yesterday that JCN Holdings were in court because they did not honour their obligation to pay back a debt it owed DBZ.?
Ms. Beyani, testifying before High Court Judge Albert Wood in a matter in which DBZ has dragged The Post newspaper, JCN Holding, MNB lawyers Mutembo and Nchima Nchito to court for failing to pay back a K14 billion loan.
?In continued cross-examination, Mr Mutembo Nchito asked Ms Beyani why JCN and The Post newspapers were in court, she responded that the duo was in court because when Zambian Airways ceased operations, DBZ asked them to honour their debt payment to the bank but they disputed the bank’s agreement.
?DBZ is claiming K14 billion and interest at the contractual rate and that in the alternative, an order that Mr Mutembo Nchito executes a guarantee or be deemed to have executed a guarantee under clause 8.6 of the syndication of the loan agreement.
?The bank has also asked the court to issue an order that in the alternative, Mr Nchito should pay back K14 billion under the personal guarantee clause.
?According to the statement of claim, JCN Holdings, The Post Newspapers, Mr Nchito and his brother Nchima were shareholders in Mine Air Services Limited, which used to trade as Zambian Airways.
?Ms. Beyani said her understanding was that the process of acquiring the shares was not completed because the airline was defunct while the process was still going on.?“So the issue is not about shares but the undertaking by the shareholders, namely The Post newspapers and JCN Holdings who had signed an undertaking to pay back the DBZ debt,” she said.?
She said the bank sometimes took a risk of financing and investment and at the same time got collateral as a fallback position in case the project failed, adding that in the case of Zambian Airways, the bank assessed the situation before giving out the money.?
Dr. Mwenda said the payback guarantee was intended to safeguard the interests of the bank and its subsequent exit.
?Mr. Nchito suggested to the witness that what the bank wanted was that if JCN Holdings and The Post Newspapers were held liable as guarantors of the debt, one of the directors of Zambian Airways (Himself) should be compelled by the court to sign a guarantee that they will pay back the debt, Dr Mwenda said it was about paying back the debt.
[ Times of Zambia ]
please crucify these two krugers. they dont deserve to be free. they have raped the economy while pretending to be saints.
Who are JCN Holdings? Are they something Nchito? This was a hoax from day one and this spineless desk lawyer who only knows how to use fear and intimidation will face the wrath of the court..he and Membe took out a loan to enrich themselves with no intention of paying back, hence his arguements now and surely DBZ if you have personal guarantees why are you in court? Surely the course of action cannot be suit for repayment of debt..engage astute law firms to help you out here and fatso and his bald headed mate will be history
shame upon the post thats why they are working with crooks like Sata
The loan was not gotten by the post per say but Zambian Airways. Lets report the correct information please. This has been an ongoing case. May be u shud have said fred membe as one of the share holders but not the post
pay back our money
@4 Dear Dora; stop wasting time on half-literates 1-3. They know nothing.
now is this the same taskforce whose abolition rb was demonised for by the post and its cohorts? is this the same taskforce which mr sata has promised to restore in the unlikely event that he assumed power? as we always say, the chances of a pf government have are zero. any further lies or actions or deception by the pf will push their chances of election into negatives, and that is for the mathematicians not us the voters.
@4 & 6, there is no difference between the post and mr mmembe, and between the pf and mr sata. same difference as they say.
@8 PF Government. The Post is not Mmembe. The Post is registered as a limited company. It is an entity on its own. Look for a secretary who works for a legal firm she might tell you tit bits about company or commercial law. Like I earlier indicated; we are dealing with half-literates here!
#9 DR. SINGLE SOURCE SILLIER,
MORE LIKELY, WE ARE DEALING WITH THIEVES, CROOKS AND FRIENDS OF CROOKS AND THIEVES, WHO HAVE EVERY REASON TO FEAR AND HATE THOSE WHO STRIVE TO ESTABLISH HONESTY, JUSTICE, FAIR DISTRIBUTION OF THE NATIONAL WEALTH AND UPRIGHTNESS.
6&4 please understand better what personal guarantee means and even if you hide behind your limp and false MBA from cape town you cannot wriggle out of this as for post being distinguished from Membe please look at how the loan was structured…POST, JNC, Zambia Airways..with personal guarantees in clause 8.6…As for being semi-literate? Well its only failed accounts clerks, psuedo-sports journalist and desk lawyers who fall under that bracket..never mind a chamboli bootlicker and chola boy to the post vuvuzela..if you know better why are not in court spewing your falsehoods…
While DBZ assumed there was a process of getting their loan converted to shares, the mafias closed the airline. This is like reading a crime novel
Mutembo is a shrewd individual and he knew all along that his airline was practically insolvent. To keep it afloat, he conned Mmembe to sink in $3 Mio into the bottomless pit! Fred got dribbled and is too ashamed to accept the fact. These chaps were after kafupi when infect they are equally lazo’s. Their only prayer is that Sata wins otherwise their nuts will be squeezed beyond redemption!
Imagine if it was James Banda or George Kunda who was owing!!! The Post would have had a field year
@ 4. This case is a debt collection exercise by DBZ. A personal guarantee was signed as security in the event that Zambian Airways defaulted so that DBZ could use assets owned by shareholders as collateral. In short, a personal guarantee is the legal way around the limited liability restrictions. There is, therefore, no separation between the owners and the company.
@9 dr silly, let’s not be hare-brained, of course you are right that mmembe is not the post in the legal sense. but i am not speaking as a witness in the high court. for the purpose of this discussion, who made the decisions for the post, and who has been writing the editorials defending the dbz/zambian airways debt? that is the issue that we are discussing. as for literacy look at this: “All the world’s a stage” (Shakespeare). now is the world truly a stage to you ?
@14, you can say that again!!
The problem I find with most of our colleges in the field of law is that you want to look at other professions as inferiol ,you want to call people whose professions you dont even know as semi illiterates,forgetting that law is the simplest study one can take look at how many retiries are taking it even failures in there late ages,e.g meembe, mulongoti etc. because there is no calculation or formulars you just need to be good at memorising old cases to reffer to and quote the already written laws.please lets respect each other.
POST AND MMEMBE IT IS PAY BACK TIME NOW. PAY BACK. IF YOU GUARANTEE SOMETHING, THEN YUO HAVE TO PAY THE EXTENT OF THE GUARANTEE. IF YOU PROMISED TO GIVE OUT A HOUSE IF YOU FAIL TO SETTLE THE LOAN, THEN THE BANK WILL GET THE HOUSE
Mmembe feel ‘shy’ to tell Nchito to f*ck off, but he knows he was screwed big time. No honour among thieves!
Mmembe was fully aware what he was involving himself in, the only problem is that his backer and protector’s demise could not be imagined or foretold.
No. 21 Yaba, you are dead right.And its that invisible hand we always talked about, but its demise could not be imagined or foretold. Ya, i like that.
Fred M’membe has always been a shrewed individual hiding behind the so-called democracy of young economies. He has always been an opportunist, gaining polpolar on wrong things. He owes not only a lot of money from the private and public entities but also the citizenry of Zambia for misleading and negative reporting. The Persismist has always ridden on negative tide in a bid to land himself into a Veep that has been promised to him by his colleague. We hear he owes the ZRA a lot of money, if this cannot be equated to corruption then I do not know what corruption is. M’membe, it is time you comeout of your cacoon and be a citizen. All disgrantled politicians are now chanpions on member’s controlled print media ( The Post). Shame.
when opportunists and those with sticky fingers want to be heard or laundered, they go to the post.
This tells a loud story that those who support PF most of them have vergence gainst the MMD and others have cases. Most of them are highly corrupt following their records. The land scandles and misuse of funds in PF controlled councils is an example. We can not change from mmd to PF it means that the country goes back to a period of bankruptcy of btn 1991 to 2001, when our country touched one of the poorest 10 countries in the world. and recorded economic growth of -3%. All our companies of pride went under while foreigners made money. The middle class that was to drive the economy disappeared and left 95% of zambians in lower class. We need real Change not frm mmd to PF noooo….VIVA HH
Story not covered by the “paper that digs deeper”!!
well planned deal. why the post is not giving us vebation on the case as usual. are they now shallow paper. meembe is a lazo like ftj. the post is headed for seizier. now i know why they are deperate want to have sata in state house. sata will give armnest to all thieves singing dont ask dont tell.
Eh! What has happened? I thought these guys preached so much about accountability and speak so much about government’s wastefulness of tax payers’ money? If they call Kafupi (Chiluba) a thief, they are equally are thieves. Trying to be smart/smooth criminals (Am aware of the fact that one has to be proven guilty first before being called a criminal but these guys have been calling Chiluba a thief even when not convicted). Indeed living in glass houses.
Own up guys. You have to payback our money. You are equally bad managers. You’ve got no morals to shout on roof tops that government is corrupt and incompetent. You are on shifty grounds.