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Alba Iulia
Thursday, October 22, 2020

Recovery of K14bn DBZ loan to benefit Zambians

General News Recovery of K14bn DBZ loan to benefit Zambians

Zambian Voice Executive Director Chilufya Tayali
Zambian Voice Executive Director Chilufya Tayali

Success in the recovery of the K14 billion Development Bank of Zambia (DBZ) loan from defunct Zambian Airways directors will benefit Zambians because the money will be made available to many other Zambians seeking to capitalize their businesses.

It is for this reason that the Zambian Voice, a civil rights organization must be allowed to join DBZ to vigorously pursue recovery of the loan because government had attempted to remove the matter from court to avoid pursuing the debt, which if fully recovered would benefit Zambians.

Addressing the High Court yesterday, Joshua Zimba, from Makebi Zulu Advocates, argued that in the tax-payers interest that the Zambian Voice executive director Chilufya Tayali should be allowed to join the matter to ensure that the K14 billion DBZ loan, which according to Judge Nigel Mutuna was obtained by fraudulent misrepresentation, was fully recovered.

Mr Zimba was arguing against opposition of joinder by the DBZ and its lawyer Buta Gondwe who did not want Mr Tayali to join the matter.

DBZ lawyer Buta Gonwe objected to the application by Mr Tayali to join in the matter arguing that the joinder would put the bank into disrepute.

Mr Tayali argued that it was unmistakable that DBZ existed to serve public good and that was why he was determined to be part of the public in pursuing that the loan be paid.
He said it was only logical that he should be allowed to join in the matter because Zambians as tax-paying citizens had an interest in the financial fortunes of DBZ.

He stated that the High Court should take judicial notice of the fact that DBZ was not a private entity and that Zambians had real stake in it.

He argued that the failure by the Attorney general who is the custodian of public interest to join in the proceedings could therefore not hinder conscientious Zambian orgainisations such as the Zambian Voice taking an interest in DBZ especially when there was a possibility that the tax-paying public would be denied the benefit of having money owed to their institution paid back.

“There have been attempts on the part of the government to avoid the pursuit of the debt which if paid would benefit the applicant as well as other tax payers. It is thus with this noted public interest that the application was filed and there is no bar in bringing the application as the matter has since commenced de novo,” Mr Tayali said.

Mr Tayali said he was intending to join in the pursuing the DBZ loan as a derivative action as a beneficiary under the contract entered into by DBZ.

And the defence lawyers John Sangwa and Nchima Nchito argued that Mr Tayali did not have locus standi in his application and that the matter was resjudicata because the matter had been decided.

But lawyer Gilbert Phiri said there was no hindrance for Mr Tayali to be joined because the matter was starting de novo in the High Court meaning that previous decisions did not stand and that the Zambian Voice chief was completely in order to join in the matter.
Ruling has been reserved.

13 COMMENTS

    • I just hope this mula is accumulating interest so that these chaps who are refusing to pay suffers when the court passes a justly judgment.

    • @PF; those directors have built manssions and flats they are renting out. If the courts find them wanting, and they cant pay back, then this property out to be grabbed. But these people are not fools. It wouldn’t surprise me if all these property were registered in their spouses names to avoid losing them.

  1. According the the nature and logic of the Banking system, people should only be referring to K14bn as the principle amount and then we need to add the interest accrued to date. Officially these guys (Post et al) are bankrupt if fairness is brought to play, unless their asset hold is able to liquidate the debt with all associated costs in totality.
    This should explain why Fred & company are restless about this issue. They are living in borrowed luxury and time as they are supposed to forfeit their assets to DBZ and proceed to jail for “fraudulent misrepresentation”.

  2. DBZ certainly has a very dull lawyer. why are you refusin tayali to join the proceedings?Fred Membe and his cronnies should pay. This is tax payers money

  3. Recover money from plunderers not from hard working Zambians whose business just failed. Some chaps were even burying your money with concrete upto now they cant explain where they got it from! GOD BLES ZAMBIA>

  4. In whose interest is that DBZ lawyer acting? He has to be fired some one correct me is that not a public thing?

  5. Mr Nichito is the DPP who is supposed to represent the public and yet in this case he is definding the organisation that got public funds and failed to pay back because he is one of the directors, that is why business people should try to stay away from public office

  6. wasn’t zambian airways a limited company? Why pursue nchito mmembe as individuals. Wu would be talkin abt this repayment if RB and his mama siliya did not close zambian airways.

  7. These pipo are amassing worlth they owe DBZ that kind of money and they want the loan to be crupt off while they have aquired those heave duty trucks called POST someone on high must be answerable. They are behaving like hostriches burrrying their heads in the sand while their bodied are outside. They have the money and they shoud pay back the 14bn. They are economic subotours.

  8. Mutembo chito is atraitor and has failed us as zambians he does not deserve that position the position was offered to a waster and dishonerst person. Mutembo is nt patriotic

Comments are closed.

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