AN INTERNATIONAL company specialised in buying off depressed debts has written to Government requesting to purchase the K14 million debt which shareholders of the defunct Zambian Airways owe the Development Bank of Zambia (DBZ).
According to a letter written on behalf of the company by the law firm Lewis Nathan Mosho obtained yesterday, the institution wants to buy off the DBZ loan together with the associated interests and follow the borrowers.
The letter, is dated April 2, 2015, is addressed to President Lungu’s special assistant for project monitoring and implementation, Lucky Mulusa.
“Our international clients specialised in buying off depressed debts have instructed us to explore with you the possibility of buying off from DBZ the K14 million loan together with associated DBZ interests arising thereby so that they pay off DBZ and follow the borrower and its associates,” lawyer Lewis Mosho said.
Mr Mosho said Government should evaluate this possibility and advise whether DBZ may engage with his clients.
He said his law firm, following instructions dated October 31, 2008, conducted a detailed legal due diligence on the K14 million loan obtained by Zambian Airways from DBZ.
Mr Mosho said the law firm rendered a due diligence report to DBZ dated December 17, 2008.
And Mr Mulusa said in an interview that he is in receipt of the letter from Mosho and will take it to DBZ management for consideration this week.
“Yes, I am in receipt of such a letter regarding the proposal on DBZ. DBZ has its board and management where this letter will be taken for their consideration but this is an interesting proposal,” he said.
Mr Mulusa said the proposal is an interesting idea to evaluate because DBZ needs to recover its money and give to other institutions willing to invest in the development of the economy.
He said DBZ should recover its money but the court process should be left to proceed so that legal issues in the DBZ case are interpreted.