Bank of Zambia (BOZ) has now joined the bandwagon of institutions demanding money from former ruling party, Movement for Multi-Party Democracy (MMD). BOZ is seeking to recover over K4 billion which the former ruling party owes.
The Central Bank has on numerous occasions written to the MMD demanding the settlement of a total K4, 044,049,420 but the former ruling party has not responded to the demand.
This is according to a letter obtained by the Times of Zambia dated October 18, 2011, by BoZ Assistant Director – Regulatory Policy and Liquidation Norbert Mumba and addressed to the MMD National Secretary.
The BoZ is demanding for the K4, 044,049,420 owed to it in respect of MMD and MOPED Investments Limited, Commerce Bank Zambia Limited (CBL) and Meridien BIAO Bank Zambia Limited (MBBZ) both in liquidation.
“We write to demand settlement of outstanding debt owed by your party amounting to K4 billion. The breakdown is as follows, MBBZ K 2,801,150,684.93, Moped Investment Limited debt (MBBZ) K 798,348,493.15, CBL K444, 550,242.37,” the later read.
[pullquote]The BoZ is demanding for the K4, 044,049,420 owed to it in respect of MMD and MOPED Investments Limited, Commerce Bank Zambia Limited (CBL) and Meridien BIAO Bank Zambia Limited (MBBZ) both in liquidation.[/pullquote]
The letter was also copied to the Deputy Governor Operations, Director Bank Supervision, Liquidation Coordinator-Meridien BIAO Bank Zambia Limited and Liquidation Coordinator-Commerce Bank Zambia Limited.
The letter further stated that the MMD needed to make a prompt settlement of the debts and that it could call on Mr Mumba the BoZ official.
“You are no doubt aware that the Bank of Zambia and the former Liquidation Managers have on several occasions written and contacted your party seeking settlement of the debt but to no avail,” official correspondence between the BoZ and MMD further read.
But MMD vice president in charge of politics Michael Kaingu said he was not in receipt of the demand letter and charged that the Government wanted to ensure that the former ruling party was wiped out.
It was not clear whether the MMD would settle the over K4 billion debt as it had struggled to pay K400 million it owed the Registrar of Societies. It had so far only paid K300 million towards the debt.
Last week, the National Pension Scheme Authority (NAPSA) filed a law suit demanding the payment of over K90 million for failure to refurbish its former headquarters at the NAPSA Lusaka House.
The party had since been given a seven-day ultimatum in which to settle the outstanding amount.
[Times of Zambia]
uukooooooooo
This is the dirty work of Sata and Kabemba Mucahabeli
THE RUMBLER,so you want them not to pay Why?
Total hogwash.This is just political witch hunt taken to the extreme.Sata has shown time and again he would love to muzzle all opposition using whatever means.
If you ever want to know the meaning of “embattled” this is it! If MMD doesn’t do its homework one of the traps (mostly of their own creation while in government) will snap tightly shut around them!
its time to look back on your twenty years of enjoying. you will be worse than unip imwe amambala
Since the people who were responsible for borrowing that money are either dead or in state house this is a non starter.
it was the party as an entity which borrowed not individuals
wasnt Sata one of them?
You are ddull my friend,a political party llike a company is run on a ongoing concept
please lets be rational in our thinking, MMD took us for a ride, they were simply running their party using government resources and asking them to pay back should not be misunderstood as dirty work of Sata. are you suggesting that MMD should not pay back this money? my hope is that PF is not and will not do the same!
And who is not taking us for a ride?? PF is even worse.
This is how dirty and corrupt MMD was.How do u owe money to institutions and you dont want to pay?Am sure there is alot more to learn.these chaps were really corrupt!! Let all the institutions owed come out and demand for their monies.
Yes,dirty and corrupt if you include the pretentious saints now in PF.They’re corrupt thats why they left after their dirty deeds.
Efyo yaba fye. Whatever you do unto others, that will be done unto you as well. This is a lesson to PF as well not to take Zambians for granted. Karma is funny indeed.
Zambians wake up. This is the same thing some of you were saying when FTJ was caugt stealing. Bamubepesha fye. A thief is a thief. The same MMD gepovernment threw thousands onto the streets with no compensation. Now you are ashamed that it is not only Nervers Mumba, FTJ, RB & Sons Ltd but even MMD (Pty) Ltd. These guys neqed a lot of Boom detergent paste to do a thorough clean up.
The cookie started to crumble long time ago. bye bye MMD, and too bad for Zambian democracy.
Why does everything have to do with Sata? This is just business. Please don’t display your intellectual bankruptcy here!
your analysis reminds me of campus days where decisions made by mobs (devoid of reasoning even among intellectuals) lead to senseless stoning of taxpayers who themselves had children at the same institution.
And sadly your empty reasoning bereft of discernment to the obvious is such, please wake up and dont embarrass our lot who passed through campus else we shall even doubt the genuineness of your admission in campus in consideration of high leakages.
The hitherto unknowns – only after Kachingwe has left. But who incurred such debts and for what? Even at the time of Meridia BIO, Cormmecer Bank sure? This is why the law on political party membership should be strengthened, to ensure people do not accummulate debts in one party and hop to other parties, or parties should not be allowed to borrow because they have no permanent members – sponsors, gurantors, etc. But then, that is a business decision, so the only solution is PRINCIPLES of those who make such decisions – do not accumulate debt and form your own parties and turn around to point fingers at the old party!
Zzzzzzzz……
Boring…… Me and Nick are for NAREP. We are on drugs.
Thanks.
Sata is party of MMD who robbed Zambia
Sata is part of MMD who Robbed Zambia
This government is a animal farm. they have done everything to protect Kapota, M’bembe and Mtembo who have also stolen. Jail kapota, let MMD and the Post paid back our money, no two ways about it. It is sad that the very things that made us remove MMd are being done by PF ten times over. Its a matter of time, we will ensure that you voted out and you will pay for these mistake
You are an *****. Why are you using the word WE as if you even vote in that confort zone of yours in the Western World you live in? You must be ashamed of yourself to be used by your under 5 chap in the name of Tonga man hh.
meant “the government is an animal farm arrangement”
BOZ and every Govt institution we expect you to hold everyone accountable and be professional even when they are in office, why now and not before, when MMD was in power. That way you will earn a lot of respect from Zambians because you will stand your ground and not fear the Govt of the day unlike only pursing parties after they are out of office.May the Lord deliver Zambia .
YOU ARE RIGHT. WHY NOW? WHEN DID MERIDIAN BANK AND COMMERCE BANK GO DOWN? THAT’S INCOMPETENCE ON THE PART OF BOZ . I DOUBT IF THAT MONEY WOULD BE RECOVERED. DO YOU HAVE TO WAIT FOR THEM TO GET OUT OF POWER. BOZ IS NOW ACTING LIKE ZP, CADRES.
how many workers have been fired by doing the right things? example in ZESCO, they changed directors over and over for being profesional. mmd had no play my friends. let them pay. they thought they will rule forever.
What the hell is going on in Zambia? So MMD is still such a threat afterall.
Sata was the architect of all this shi*t when he was the almighty secretary general of MMD. The crook!!!!
YOU ARE RIGHT. WHY NOW? WHEN DID MERIDIAN BANK AND COMMERCE BANK GO DOWN? THAT’S INCOMPETENCE ON THE PART OF BOZ . I DOUBT IF THAT MONEY WOULD BE RECOVERED. DO YOU HAVE TO WAIT FOR THEM TO GET OUT OF POWER. BOZ IS NOW ACTING LIKE ZP, CADRES.
The former BoZ governor was an MMD cadre that’s why nothing was done then.
You know what they say that every dog has its day. We actually warned, in our own small voices, around 1994, that the excesses of the time would catch up – perhaps not in the lifetime of the powerful, but definitely when they shifted to the “lower ranks”. This is it!!!!
Where is Sata coming in? MMD is an entity and it borrowed the money which it has to pay back. Debts by MMD should be paid by MMD as an entity , if not then it will be sued and eventually declared bankrupt , and that will be the end of MMD. Sata left MMD 11 years ago, why didn’t MMD pay these debts all this period?
Peace and Prosperity to Mother Zambia.
@Truth hates we acknowledge that. But we also want the money borrowed by M’bembe and Nchito to also be pursued with the same interest. That is all we ask
YOU WILL AS USUAL REALISE LATER THAT PF IS DOING THE SAME USING THIS SAME SMOKE SCREEN.
All those that did know about these debts are stormed with shock and cant verify hence claim foal play or calling it witch hunting……MMD started well but unfortunately was infected with the virus of Corruption…supporting blindingly is the resultant of such claims….in PF we welcome everyone criticizing Wynter Kabimba with all corruption issues including GBM so we do not claim foal play or witch hunting after the leave government which is after 2026
Just pay back. The Bible says give to Ceaser what belongs to Ceaser.
Dirty and cheap politics in Zambia… Zambians should feel ashamed of themselves watching this mediocrity…
be a step ahead. dissolve mmd and make another party. Kachingwe is keeping all the mmd classified data and he wont rest.
So who will remain to settle the bills? Surely someone must be made accountable for all that money!
Ninshi ba MMD baletwalakwisa tu money zoona! So these are the results of the 20 years in power? Really MMD messed up and never thought they will get out of govt. But Sata was part of all the mess and now he has come back in wolf skin to rape his former lovely party for his own selfish desires. Most of the New comers in MMD do not even about all this mess. Sata, Kalumba (Kaka) were at the helm of MMD at the time when all these debts were accrued. Sata must pretend to be a saint, the man stinks with the dirty work in MMD. A pity that Zambian tend to forget so easily!
BoZ must be the most incompetent Financial Regulator in the country.Firstly,MMD as a Party never borrowed money from any of the Banks mentioned.These monies were borrowed by registered and LIMITED LIABILITY Companies which are distinct from the promoters.MMD as a Club has no perpetual membership which a company has.So BoZ should do the following:-
a) Get names of Directors and Secretaries who appear on the last Annual Return submitted to
PACRA by the named companies.
b) By Law,the notices should be delivered to the registered office of the company or through an advertisement in one of the daily papers.
c) Furthermore,any prudent lending has to have a demand for collateral.So what has happened
to the collateral pledged.If there was no collateral offered,the debt is toxic.
Mutembo nchito and Fred membe should lead in payback
You are very right!
Mushota on which flight are you booked we dont want to miss this rare orppotunity of meetin Nick at KK airport
# 32 MELU: You rescue few Zambians who really understand how businesses are constituted and managed. Its almost unbelievable that MMD as an entity borrowed the money(if ever it did) in the name as a legal entity MMD. We are alive to the fact that Meridien Bank was run as a private bank and its liquidation had nothing to do with MMD as a party. Benjamin Katanga Mwila who was MMD and Mr Sata are still alive who claimed ownership of these institutions which was separate from MMD. The strategy to choke MMD will necessarily bring in Sata in state house. For the general public to buy the story of MMD owing this debt to BOZ is pure naive and misleading. Sata was CEO of MMD at time of Chiluba when colosal sums of money was being stolen. Sata has some explanation to make to Zambians in all this.
Who gave that letter to Press which was writen in Oct 2011 this is the question u should ask yourselves before u make foolish comments, this is the work of Mjr. Kachingwe and SATA trying to kill MMD but it wont work, now u can prove for self that Mjr. Kachingwe was a plant in MMD by SATA even in last year election he contributed the loss of power by MMD to PF no wonder he was the first one who rushed to tell RB to cons-ind defeat even before counting was over. This man is a political criminal but I can just advise him time will catch up with him very soon PF is going in 2016
mmm, man PF is staying in power come 2016. This is coz there is no wise opposition in Zambia. Look at UPND and MMD…..what can they do to PF????
trying to kill mmd you are having a laugh-mmd is already dead my friend
Does Central Bank lend out money? Or is it the mushoota and katyooka saga, shame! LORD JESUS COME SAVE YOUR CREATION.
As some has stated somewhere …” PF is after MMD’s replacement not destruction only….From office evictions, then came Registrar Fees in huge millions, then Kachingwe and the spineless Namulambe. Now Billions at BOZ….As a professional body and holder of public confidence,Why didn’t BOZ take action within the 20yrs of MMD rule? Meridian BIO ,was politically destroyed in the 1990s ,what was BOZ doing all this time?…Simple answer, our useless barbaric constitution !! Separation of governance institutions from the executive is now more urgent than ever!!!. This nonsense must stop!! …..Indeed, Honesty and integrity are hallmarks for the principled, too expensive for CHEAP PEOPLE.
Dr Mumba is a threat in the northern vote, more so too the copperbelt,central and Lusaka…”
At the end of the day, bonse ba fi colour ama politicians are thieves. Sata and his PF, Ka kabimba, GBM, MMD, all of them are corrupt.
Trying to draw away the attention from the K14 Billion owed by mmembe. Even the BOZ is trying to sweep it under the carpet.
JUST PAY BACK GUYS-MMD. YOU WERE EATING ALONE, NOW IT’S TIME TO PAY BACK.
#39 you are making noise. what 14 billion??? just keep quiet.
The question that begs answers is whether or not BOZ would have asked for payment had MMD stayed in power. How can a respected institution like BOZ wait for years on end before demanding settlement of outstanding debts? It not understood.
Zambians are being caught by their own foolishness. We warned you not to vote for Sata. I predicted all this. What is interesting is that everything Sata is doing was in the PF constitution from the beginning. The truth is that Zambians were to lazy to read through it. Just go to the PF website and read their constitution.
ENJOY. YOU ZAMBIANS BROUGHT THIS ON YOUR SELVES.
So it ok for NAPSA and BOZ to demand money from Nevers. WHAT about K18billion from Mmembe and Nchito. Foolish Zambians!
Sorry Zambians, brace yourselves for a one party state which will be more brutal than UNIP.
Everything is being done to wipe out the opposition, whether you like it or not, you mean you can’t see that?
This zeal of pursuing monies owed must be applied equally. we want our billions from these dweebs mathani, Mmemba and Ncito.
Just leave MMD alone. When did these two banks go under? Who was the National Secretary of MMD at the time and where is he now? It was Ba Sata and he is aware about all these debts and he is the one instruction BoZ, BECAUSE HE KNOWS ABOUT THIS
Imwe tami nyunya apa..we have just pocketed this money. The MMD has no record of this amount so we putting it in our account. Do chi kubeba ati Ni myeba..
its sad most bloggers here have no mercy on the poor pipo in the villages, we know you got part of the money with MMD. jast pay back. the courts are there if you are not owing. thats alot of money for us poor zambians. NO POLITICKING WHERE MONEY IS CONCERNED. PAY PAY BBBBACK
#10 Stoolpid did you see FTJ stealing?
commercial banks will need billions of kwachas to change there systems to the new rebased currency. the question who is going to fund the banks?
BOZ being used to settle political scores again. Where have they been all these years to come up 18 years latter. I agree with the view that BOZ is equally incompetent.
THE END OF MMD
Elolwanya nomba. Lipileni indalama bafitushi imwe.
ww want the money form the pfost and mmembe and big bum nchito for DBZ as well..
Sata was Minister without Portfolio when these 2 banks went into liquidation.
Those two retired Generals whom GBM talked about should get to carryout what they were paid for!