The power company has since asked the Lusaka High Court to compel Mr Chitundu to surrender the shares to the current Zesco managing director, Victor Mundende, following the termination of his employment.
It wants the court to declare that Mr Chitundu held the 10,000 shares in the Zesco’s Special Purpose Vehicle by virtue of his office as the then managing director of the firm.
A writ of summons filed in the principal registry indicated that in 2013, Zesco incorporated the KGLPDC as a Special Purpose Vehicle (SPV) for the development of the 750 Megawatt hydro power project situated in Chinkankata District.
The company stated that the shareholding structure for the SPV provided that Zesco hold 990,000 shares with the balance of 10,000 shares being held by the incumbent managing director at the time.
The power company indicated that the 10,000 shares were allotted to Mr Chitundu by virtue of office and as provided for under the Articles of Association.
It claimed that the 10,000 shares allotted to the office of the managing director had no monetary value and were subject to being transferred to the incumbent and, in the event of change of office could be susceptible.
The firm had on several instances sought to engage Mr Chitundu for the purpose or actuality to share transfer from him to Mr Mundende, but this had come to no fruition.
It said the situation had raised an impediment in the holding of shareholder meetings as Mr Mundende was not able to attend meetings or carry out other functions of a shareholder as prescribed by the Articles.
Zesco has as a result suffered loss and damages.
where in the world is a CEO of a state company given shares in a project the company is under taking ?
Uko!
PF failed bandits of PF under visionless Lungu have done Donchi Kubeba sickness & dununa backwardness on each other. Njala inyokola lelo mwapya.
How much is mealie meal?
The Skeleton Key
~206~
But why should the CEO hold the shares on behalf of ZESCO. Why can’t they just be in ZESCO name…something fishy.
I am sure he found a legal loophole in the agreement
The logic beats me too: I cant see any sense either….
Typical of his kind, Chitudu. Stealing now is becoming official and formalized.
@Skeleton on this you’ve hit a blank. Chitundu was not employed as PF and when was he employed? Concentrate on finding out how and when he got those shares.
Only in Zambia…….unbelievable!
Utterly stupid. Zesco being a body corporate was eligible to own shares in its own name with its CEO only being its proxy. There are more questions than answers in this arrangement.
If shares mentions Chitundu then the 10,000 are Chitundu benefits. I know this, company I worked for I still get a check as employee. I never sold, even though I hated that job. The employee who took over had his own share.
It appears the shares are in his name not the company name? How did that happen?
daylight robbery just like what Vodga Chagwa Lungu is doing with his fellow pf bandits…
An MD of a parastatal or even multinational is usually given 1% shares in his name so that he can represent the company at the board meeting of shareholders. This is inevitable in most corporate entities and depending on the type of shares, if they are optional the MD is then paid the dividends as earned for the tenure and the same legal requirements of a country. These shares are transferred to the new CEO, but incase they are optional shares, the out-going MD should be paid the dividends earned over the period the shares were not transferable.
In this case, most likely ZESCO has not paid Cyprian his dividends as earned at the end of his contract and he will only surrender the shares when he is paid. Criticizing things one least understand is simply being a lumpen.
There is nothing wrong with giving a small number of shares to executive directors so that they can attend Shareholder meetings. The problem here is that the Company Secretary did not have blank share transfer forms pre-signed by Chitundu who clearly was just a nominee. That way there would have been no need to talk to him once he left the company as the shares would have been transferred to the new office holder without his consent. This was a major cockup by the Company Secretary. #Lack of experience#.
What is Mr. Chitungu current position with Zesco if yesterday he was worling?
There is nothing wrong with giving a small number of shares to executive directors so that they can attend Shareholder meetings. The problem here is that the Company Secretary did not have blank share transfer forms pre-signed by Chitundu who clearly was just a nominee. If that had been done, there would have been no need to talk to him once he left the company as the shares would have been transferred to the new office holder without his consent. This was a major mistake by the Company Secretary. #Lack of experience#.
Comment:B Ba Chitundu do the right thing,you were not the first to hold that office. A lot of people went through that office and have forgotten about it. TAFIPWA KULOWA. Hand over the shares instead of dragging you to court which is not necessary.
The shares have no monetary value, yet ZESCO has suffered.
The CEO holds shares on what basis? As part of his remuneration?
A good report must have the following:
1 balanced
2 sensible
3 informative and come to a conclusion
The logic of MD holding shares on behalf of the company when the company itself holds a portion of it if not part of his remuneration beats me. There’s more to it than sees the eye…
Pf cadres holding high level technical roles without and skills or knowledge apart from fattening themselves. And you expect these goats to deal with load shedding kikiki
Chitundu was very qualified for the job. Be objective and focus on the issue at hand.
@NEZ Typical of UPND,
They think everyone associated with PF is a bonehead and only kachemas have been to school. hehehehehehe very funny
If these shares have no value attached to them, how has Zesco suffered loss? Is this loss even quantifiable without an element of value? Beats logic indeed or is there something that Zesco is not disclosing here? Why did Zesco not hold all the shares in the first place? It would seem to me that this should be part of a package for the man in charge. But now that this Chitundu was unceremoniously fired, Mudende has learnt of this close and wants to get these shares for himself. These political appointment are what has ruined government run companies because the cadres are devoid of an managerial experience but are their for political expedience.
ZESCO is bad. That is why outages are a daily occurrence in most areas and are normal to them, how else can one explain the daily outages in some areas of Lusaka. The response rate is unheard of. I am not judging them harshly but let them prove me wrong. The other day we had an outage at home, three of us called, a friend, a cousin and myself and we all got three different answers from their call center as a reason for the outage. We just laughed and remained in our darkness
What are the Board Members doing? Of course if I have that amount of ‘shares’ I can use them as collateral to borrow against them so really they should be ‘transferred’ to the current MD but be mortised and converted to zesco ltd. In the meantime the Board of the ‘incorporated’ company can pass a resolution to enable the current MD of zesco to attend the meetings but not draw an allowance until the matter of the 10,000 ‘valueless’ shares can be settled.
Former MD was working yesterday? Kaya?
From file.
I think that the 10,000 shares were held by the GM on behalf of PF so that they loot money for campaigns. Now Chitundu will reveal all in court.
It explains why we have load shedding,its got nothing to do with rain fall
ba kawalala beka beka under pf regime…
There too much happening behind the scenes in that company too many excesses and corruption…this is a clear example!!
Those were probably management shares allotted to the incumbent MD unless of course they were mere token shares.Has Zesco paid for 990,000 shares? I think there is just witch hunt here.Chitundu is quitely performing his duties as CEO of Power utility company of Mozambique and the back stabbers back home want to tarnish his name
It means Chitundu Still has authority. Wamuyayaya syndrome pa zed, n thing is possible. Third term, zambian army worms, company shares in someone z pocket,shooting hubby 5times ati mistake,shooting fellow cop ati mistaken identity.
Ifyakulya ubuushiku, typical of a good looting deal goes bad. There is something fishy here
What name appears on the share certificate? Zesco or Chitundu? if its Chitundu then …game over. They are his!!!
Comment:This is what you get when thieves are running things. Clearly it is because chitundu has fallen out of favour of the other thieves, crooks and swindlers.
Why is Victor operating zesco on a laptop, just this January let him come out and tell the nation the truth how many trips as he under taken, and many weeks has he been in office Monday to Friday ? He is too busy try to clingy a deal on behalf of zesco So that he can also get a percentage . Probably it’s paining him to see his former boss still getting something out The contract he clinched whilst holding office has MD. We need to dig deeper.