THE US$4.2million loan borrowed by the defunct Zambian Airways from Finance Bank has not been paid back and efforts by bank officials to pursue the matter have been frustrated on superior orders.

Bank sources have disclosed that attempts by officers to regularize the loan have been met with stone silence and the Bank of Zambia which has overall supervisory authority on financial institutions has failed to provide guidance.

This is in spite of the fact that Finance Bank in full and documented consultation with the Bank of Zambia hired prominent Lusaka lawyer Sunday Nkonde to pursue the recovery of the “non-performing asset” loan.

Documentation availed to the Daily Nation by bank sources showed that the Bank of Zambia was in agreement with Finance Bank’s plan to liquidate and recover the $4.2 million which was outstanding on its books.

The bank engaged the external counsel to ensure the recovery of the loan which was under the “mine Air Services” a forerunner to Zambian Airways owned by suspended Director of Prosecution (DPP) Mutembo Nchito, Fred M’membe Post newspaper proprietor and Nchima Nchito, a Lusaka lawyer.

According to records available the loan was fully guaranteed, meaning that the company owner were liable for the debt.

However, soon after President Michael Sata came into office a consent order was entered into withdrawing the matter from court, under terms and conditions that were not erlaborated in court.

Later suspended DPP Mutembo Nchito issued a nolle prosequi in favour of the Finance Bank board chairman Rajan Mahtani.

“We are aware that that on 28th November, 2012, High Court Judge Nigel Mutuna entered a consent judgment between Finance Bank Zambia Limited and Keiran Day, Mine Air Services T/A Zambian Airways, JNC Holdings, Post Newspaper, Mutembo Nchito, Nchima Nchito and Fred M’membe, but there are no details that were furnished to enable us follow, document and close the case in the manner that should have been appropriate.” he said.

The fact that in In March 2013, Nchito entered a nolle prosequi in a matter of Dr Mahtani, he said, was very different from the issue of the loan, “That money belonged to depositors and did not have to do with personalities. That is why appropriate measures should have been taken to recover the money.” e said.

“The Bank of Zambia Governor should be aware of this matter because its name had been implicated in the matter

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12 COMMENTS

  1. The people implicated here are in the forefront calling others corrupt.

    These guys got money from every bank with an intention of not paying back. They always blame Rupiah Banda for the DBZ loan. In this loan there is no Rupiah but they still did not pay back.

    Next time we should refuse to walk the streets of Lusaka until and unless these guys are in jail. An axis of greed and evil they form.

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    • The evil that men do ……..
      The manner in which the airline was wrestled from those hardworking pilots speaks volumes. Indeed this airline they so much desired has comeback to haunt them. Lessons to those that desperately love fame and wealth.

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    • How do you expect a company under receivership (liquidated) by politics to pay back debts? Don’t comment under the influence of jemasoni

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  2. I really wonder why Fred Mmembe had to go into the airline business. It is the most difficult industry for any rookie businessman to venture into. Ukulwisha ukupange shina takwawama. Richard Bryanston had been in plenty of succesful businesses before jumping into Virgin Air.

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  3. Can someone please clarify this for me…is this new debt separate from the k14 billion we already know and are pursuing???
    My point being if this is old debt that we already know,then this isn’t news!

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    • This is a different debt. The one you are referring to is owed to DBZ. This is owed to Finance Bank

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  4. I hear Zim will be issuing a new currency named after Bob. The Zim Bob. The coins will be called Mamparra. There will be 100 Mamparras in one Bob.

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  5. Richard Sakala cum PF vuvuzela, leave the Post out of this. Where would Zambia be today without the Post. When all is said and done, I bet that Fred M’membe will perhaps be the best thing that happened for the creation and sustainance of democracy..

    Zambia without the Post would have now been a dictataship.

    What would be the level of corruption and looting of public resources by MMD and PF at this time but for the voice of dissent from Bwinjimfumu? How much tribalism would there have been but for the constant checks offered by Fred M’membe?

    Fred in the personality of our times. Hate him or love him……there is no one person with as much influence in Zambia as Fred wields and for the good!

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  6. Just write off the loan. Mutembo Nchito is roaming the streets of Lusaka with no job.

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  7. Grutoo some people have joined a fight they don’t understand. For all his weaknesses, Fred has stepped (& rightfully destroyed so many crooks from FTJ’s time).
    These crooks ganged up to exert vengeance during RB’s time.
    Unwittingly, Fred let his guard down in MCS’s time & these crooks have manipulated that to their advantage.
    So whatever you say Grutoo its paradise in lootland.
    But the truth is you are right.

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