Thursday, March 28, 2024

ZRA formally joins court proceedings to wind down the Post Newspaper

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ZRAZAMBIA Revenue Authority (ZRA) has formally joined the petition in support of the winding up proceedings against the Post Newspaper which has been placed under compulsory liquidation by the High Court in a bid to recover K79, 569 974.21 the newspaper owes the tax man.

And Investrust Bank has also submitted a claim against the Post Newspaper, demanding about K7 million it is owed by the newspaper. Meanwhile, Palan and George Advocates, the new lawyers for the provisional liquidator of the Post Newspaper (in liquidation), have withdrawn an application by Messrs Nchito and Nchito to stay the execution of an ex-parte order appointing Lewis Mosho as the provisional liquidator after the law firm was fired on Wednesday.

“Take note that the respondent herein wholly discontinues its applications to stay execution of ex-parte order appointing provisional liquidator and to set aside ex-parte order appointing provisional liquidator,” read the notice to the High Court.

ZRA has joined the petition in support of the liquidation of the Post Newspaper in a notice filed in the High Court which has since been served on the liquidator and the five former employees of the Post Newspaper who are the petitioners. This is contained in a notice of intention to appear at petition pursuant to Rule 10 of the winding up rules, filed in the commercial registry of the Lusaka High Court.

“Take notice that Zambia Revenue Authority, Kalembo Road, Kabwe Road Roundabout, a creditor for K79 569 974.21 intends to appear on the hearing of the above mentioned petition to support it,” the notice read. This followed the High Court Justice Sunday Nkonde’s ruling to place the newspaper under provisional liquidation after five former employees petitioned over the company’s failure to pay them their dues.

Those who have petitioned the High Court included Andrew Hebert Chiwenda, Roy Habaalu, Bonaventure Bwalya, Mwendalubi Mweene and Abel Mbozi all of whom are former employees of the newspaper. Mr Justice Nkonde has since appointed Lewis Nathan Advocates to be Provisional Liquidator for the winding up of the publication in respect of all its assets.

However, the newspaper filed an application ex parte to stay the High Court ruling pending the determination of the petition before court, but Mr Justice Nkonde set yesterday as date for inter parte hearing on the matter.

On the other hand, the liquidator has already replaced legal representation for the Post after he relieved Nchito and Nchito Advocates and replaced them with Palan and George Advocates with immediate effect. ZRA claims up to K79, 569,974.21 from the Post Newspaper over their failure to honour tax obligations including accumulated VAT.

The High Court has notified all creditors and other interested parties for purposes, inter alia, of submitting claims with the provisional liquidator. The newspaper owed its former employees K785,000 in salary arrears and benefits apart from the K79 million owed to ZRA and the US $3 million owed to Investrust Bank, among others.

25 COMMENTS

  1. It is not worthy it. This is what we want to see! I did not like the post at times but there are a lot of questions surrounding this

    • It is funny – Palan & Company are using Lungu’s trick where his own appointed General Secretary made a Consent Agreement to withdraw a petition when the originator was somebody else. I should remember this trick; it could come in handy one day.

  2. This is crazy. The Post was a running entity and no one complained for non payment of salaries. Its the faulty of the PF government who should now pay off all the debts the company had. The tax tribunal called the two parties to make a way forward but ZRA under orders from State House refused to hear the other side of the story. ECL was only interested to silence the paper so that opposition party leaders are not heard by the Zambian people. Shame PF and now you are reaping what you sew.

    • The bottom line is that in a liquidation, ZRA takes priority against all other creditors, except the liquidator who pays himself first. These former employees have been used as useful idyots to trigger the liquidation. They will walk away with nothing from it. ZRA will keep everything because I don’t believe the PFost’s net assets are more than the taxes owed.

  3. Its the Past who went to Court and lost! Just like our outgoing former Upnd President and losing Presidential candidate HH who went to concot and lost and then blamed the judges after filing what on the face of it we were told was evidence only to find there were ‘once upon a time’ issues. 2021 New Leadership Zambia Forward!

  4. And HH pumped his money into the post. That was a worst, i think its time we geta new president to replace HH. Dr Banda must come back or we try Hounorable Nkombo

  5. @Fred. The post had not been paying its workers for sometime. Some of the workers were coniving with the vendors and were helping themselves from the daily sales and pretended that a named political party had confiscated the papers. Prior to the elections WK was helping your namesake with fuel to help distribute the paper. Inside information.

  6. We need a strong and vibrant private print media in a country to champion the tenets of democracy. The PF were really given coverage when they were in opposition during hard times of Rupiah Banda. They will need a private media again to cover them when in opposition because state owned media will not be there to give them coverage.

  7. Total confusion, unfortunately workers are the ones to suffer. I don’t know if it will be possible for them to get their monies because even before this workers were going for months without salaries. who is going to help them? the government has no interest in workers than what it wants to achieve.

  8. Zambia Revenue Authority is toothless. What I mean is that it acts on instructions. It is doing a job in bad faith. What about the state newspapers which are in arrears? I am sure the state newspapers owes ZRA more money than the Post. Many of the state companies have failed to pay taxes to ZRA. When it comes to custom duties common man pays and the ministers, VIP, special people do not pay. The government is the worst employer which does not pay its workers on time and it is suppose to be a good example of employers. Then you hear ministers condemning companies which do not pay their workers on time. The ministers should be ashamed of condemning other companies when the government has failed to pay the workers on time. With that kind of attitude Zambia will not prosper economically.

  9. Sometimes the option for Good Corporate Citizens is to appoint a curator who will see off the company and revise to sell it as opposed to liquidation There is more value to be realised in curating to cure the company and attract investors to invest and turn around the company to rebrand it away from its current face of perceived tax and cash flow pressures To simply liquidate might be not positive Anyway what is the Meaning to “LIQUIDATE” I aware the public face is simply get away with post but for future there must be a provision to put the company under care and maintenance to ensure its cured to perpetuate

    ZRA SHOULD ALSO SPEND MORE…

  10. RESOURCES AND MANPOWER IN TALKING TRANSFER PRICING in view of many in view of increased IMPORTS AND EXPORTS FDIs and the increased cost management to effect transfer pricing by multinationals NOT ONLY MINING and manage the barriers that exist to properly evaluating transfer pricing especially voluntary compliance by parties and ensuring that the ZRA compliance department and legal is equipment to ensure the maximum taxes are collected here There has to be an audit report and a specialised section tasked to identity and collect the trends and report on the impact this has on ZRA tax collections especially now that cross boarder trades in imports and…

  11. exports has substation ally increased on Zambian boarders since 2000 and also the flow of FDis from china and others with only about less than 10% ownership by Zambia registered listed companies ZRA needs to develop and agile development model to INCREASE the CAPTURE of taxes aggressively being hidden in transfer pricing Selector for Instance FDIs 2011 and see the Tax policies that can result in increased revenue if transfer pricing was priotised more than then the post

    It was good listening from well articulate and experience TAX commissioner at CHIRUNDU about the PHYSICAL measure implemented to increase revenue capture and was well on but the…

  12. soft issue of PRCING imports and exports and including FDIs still can be seen and observed PHYSICAL measures must be complemented by TARGETED measures in capacity and policing multinationals around transfer pricing

    Mulumu Sand ton thanks ,Pa Chirundu keep it up elders revenue is important

  13. Yama its correct Siame George was and is intelligent and Good

    Map the FDIS according to countries of origin,classify the imports accordingly and develop a specialised focused plan and review to create a data base to ensure YOU maximise these revenues in transfer Pricing not only from mines with increased capacities that will result in learning and customer satisfaction The revenues measures arising if well managed and mapped could be more that from current mining focus

  14. Yaa there are many barriers that exists to making FDIS and Multinationals comply with Transfer pricing especially the NON mining but if you have NO MANUAL CODES,NO INTERNATIONAL SPECIALITY TO REVIEW AND COMFIRM CASES OF TRANSFER PRICING THEN you are still acting domestic taxes that may not be enough to get you revenues with revenue agents including the system management Its not enough being a member of the Late Mwansa International institution You will need to protect your own treaty and transfer pricing operations areas WHICH are many for ZRA revenues

  15. That is the point you are right and correct the issue of “‘micro captive transactions”’ especially for service firms and in particular INSURANCE reinvestments and reinsurance using captive firms The taxation has not been effective and is a leakage for Revenue for ZRA and must be relooked

    The trick is to reduce and manage to lower taxable incomes in the “‘ reinsurance of Risk” to some related captive insurance company The problem is the sincerity and lack disclosure ////

  16. The post must pay.. the grew too big headed and thot they can do anything and reach to an extent of publishing false statements in Mr satas regime. Good for u Mr Fred.. back to poor.. shame. Though your allies the nchitos are smarter than you.. this time they will run away

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