The Post newspaper, one of the shareholders of the debt-ridden Zambian Airways, has reportedly asked the Development Bank of Zambia (DBZ) for an “amicable resolution” over K14 billion the newspaper allegedly guaranteed on behalf of the airline.
According to the online publication, Executive Issues, The Post, through its lawyers MNB, said they were still open to an amicable solution to the DBZ claim following a second demand notice to them.
The demand notice was sent by DBZ lawyers, Malambo and Company. The state-owned DBZ has demanded that The Post settles the claim or face court action.
When contacted by phone yesterday MNB lawyer, Mutembo Nchito, could not say anything over the matter and the line got cut. Further attempts to talk to him proved futile, as his phone was not being answered.
The Executive Issues quotes “sources at MNB” as saying that the law firm has been retained to defend The Post and JCN following a demand letter from DBZ to the two companies demanding money which the allegedly guaranteed under the buy-back equity transaction.
JCN is a company owned by Mr Nchito and his brother Nchima Nchito.
The online publication quotes a letter said to be from MNB as stating: “Our clients are still open to an amicable solution of this matter.”
The publication also states that The Post and JCN argue that they cannot pay the stated amount because the transaction to swap the DBZ loans into equity in Zambian Airways was never finalised.
DBZ is claiming a total of K28 billion – K14 billion each from JCN and The Post.
[Zambia Daily Mail]
More twists in the ZA saga. fili ekotuleya nakaili.
I don’t think there is anything wrong in seeking an amicable solution when there is a commercial debt in place. I hear that the Post has stepped up paying its debts in case RB pounces.
But how do they claim that money if the transaction was not finalised ?
Yeah, more twists…we need clear answers !
Ala inkongole shalishupa bane
Chiluba is a thief ? ….Lets wait and see
Goodmorning Bloggers There can not be business without credit.It is for this reason that the whole world is complaining of the current crunch.Therefore DBZ should act professinally to recover what is owed to them and not acting on directives from State House.Its clear here that Nchito is paying for being bclose to M’membe.
No just continue being arrogant .are you guys not untouchable?
What is the website for the online newspaper executive issues?
kaya
wina azalila kufika December.nindani?Rb nangu satana?
Posterity will judge us zambians harshly.
The precedents that RB has set in terms of commercial transactions leaves the future of business in a dark cloud. Business is based on credit. You cant afford to do business minus credit. RB should illegalise any sort of borrowing in Zambian business. Shame on us Zambians. This mediocrity is the reason why countries around us which were embroiled in civil wars like angola are overtaking us in economic strides because of the sheer jealousy and PHD syndrome. No amount of semantics will cleanse RB of his corrupt being and mediocre leadership attributes.
This is all political and regrettable for a striving nation like Zambia. Why cant government leave alone its government owned companies to work independently regardless of the differences between MMD and Mmembe?
GRZ will not win this scenario at all, let it be a good lesson for the rest **==
If the transaction was never finalised then why do they seek an amicable solution? Surely all they need to do is to ignore the demand as they have no case to answer? If they are so so sure of themselves, they should resolve the matter in court – after all BoZ will pay they costs if they win……
You people shock me. What do you want DBZ to do? How many people have had their businesses siezed by DBZ because they could pay their debts. Go and check the premises of Northland Engineering in Ndola. They were liquidated by DBZ when they couldn’t pay DBZ debts and the owner had to emigrate to South Africa.. Is Fred Mmembe a special person in Zambia? All of us have to be equal before the law. And Mmembe can not have his own laws. Why are you bringing RB in this issue. DBZ have an obligation to safeguard public resources – not to give them to Mmembe because ‘Political Says” loves him. Pay people’s money back.
An investment is a risk. Mmembe took a risk. If it had paid off he would have bought another Hummer ridiculous vehicle to enjoy it with his family and friends. The investment went bad. He signed agreements for the debt with DBZ. RB was not their. Why are you bringing Rupia in this. you have been calling him a liar when he said “I will not shut the post, the Post will be shut by its own poor management”. Now the creditors have arrived and you want a political solution? The best solution is for you people who think that Mmembe is special to make contributions and raise K14bn. Public money can not be wasted by Mmembe on some silly investment in which the public were not involved..
All the Post sympathizers here need to have a sanity check. No one is above the law and we should all be accountable for our actions. Nchito & Mmembe targeted NAPSA, DBZ, Investrust & Intermarket knowing that established banks like Zanaco, Stanbic, Barclays & Stanchart would have thrown their credit applications in the trash! Only a moron would lend money to an insolvent business and Nchito SHREWDLY targeted these institutions knowing he had backing from LPM & Magande.
Nchito boys are very slick chaps, just ask the former Mgt of Roan Air (which later became Zambian Airways). It should have been a Mgt buyout after ZCCM was disbanded, and MNB were their lawyers. However, Mgt were dribbled with a hefty legal bill which resulted in Nchito’s taking equity instead! My God, and u thought FJT was a dribbler? he’s an amateur compared to these blokes and I’m waiting to see how they’ll dribble their way out of this one?
I’m not superstitious but is it a coincidence that all those who pissed off Katele Kalumba are now either dead or mysteriously $hitting in their pants?! LOL, perhaps bwana Kalumba is manipulating his magic laptop and finishing off all those who were after his blood!!!
Impressive update on the Zambian Airways SAGA. I however thought that Zambian Airways (ZA) was responsible for its dealings. Anyhow, it is great to see that the shareholders of Zambian Airways are busy trying to resolve the matter amicably as ZA is reported to be under receivership or is about to be.
I just wish the POST and the Nchito Brothers all the very best in this issue. Nothing is impossible with God according the Holy Scriptures.
#15, and #17, same hypocrisy from the Post’s fans, different day. I can’t imagine what the same people would have said had RB been demanding a similar agreement for his business. More and more I really see that the problem in Zambia is not RB, but certain holier-than-thou individuals who take on a selective interpretation and application of the law – seeking to employ it when it suits them, and then avoid it when they have a case to answer for. Unfortunately, its many readers continue to heed to its calls like blind sheep. Pathetic. Learn to think for yourselves instead of taking the Post’s words as Gospel truth. Don’t be hypocritical.
It is like most of the people are just talking without knowing what they are suppose to say.
let’s appreciate the post but at the same time let’s be wary of manipulation.
I have always told you that ZA saga is just poor management. The directors did not decide in the interest of the company. Why did they stop operations? To get away from the maturing obligations. White collar criminals. Mmembe even studied to smart out poor zambians who hold him in high esteem. RB and the Government should just take them to explain simple area of fiduciary duty as directors of a company.
In Zambia, LAW, JOURNALISM and ECONOMICS are a circus. Why do I say so? Because of the players involved. MNB (Matibini, Banda (LAZ president), Nchito (Mutembo & Nchima) for The Post (Mmembe et al) against DBZ, represented by Malambo & Co. (Malambo is chairman of a rival airline to Zambian Airways) and reported by Executive Issues (owned by Dickson Jere, Pressman at State House for RB). How on earth can there be objectiveness in any of these situations?
In Zambia, LAW, JOURNALISM and ECONOMICS are a circus. Why do I say so? Because of the players involved. MNB (Matibini, Banda (LAZ president), Nchito (Mutembo & Nchima) for The Post (Mmembe et al) against DBZ, represented by Malambo & Co. (Malambo is chairman of a rival airline to Zambian Airways) and reported by Executive Issues (owned by Dixon Jere, Pressman at State House for RB). How on earth can there be objectiveness in any of these situations?
Had to rewrite comment #24 because LT does not like the name of the Analyst for Press at State House.
#8 Ba Zed
“What is the website for the online newspaper executive issues?”
This is a corporate only subscription online news and comment publication circulated among the corporate institutions and executives in Zambia. One of its Editors is Mr Jere the Chief Analyst for Press at State House. If you want to know what the government knows and what the government is thinking, this is the paper to read. This publication started before the elections and funny thing is that it predicted that RB would win. The contributors have both ears to the ground. If what is published in this EI was widely circulated, Zambia would have a different complexion by now. It is very thought provoking and full of conspiracy theories too!