FINANCE Bank Zambia has instructed SNB legal practitioners to recover US$4,208,938,28 from Mines Air Services Limited, trading as Zambian Airways and its directors over a debt that they guaranteed.
The debt was guaranteed by the Post Newspaper Limited JNC Holdings?Limited under the signatures of Fred Mmembe, Mutembo Nchito and Nchima Nchito.
According to a letter addressed to the Zambian Airways receiver a Mr Kieran Day of Kenya, the debt has been outstanding and now Finance Bank would like to recover the amounts.”We have been retained as advocates for Finance Bank Zambia in the matter and therefore note our interest.
“FBZ has instructed us to formally demand from Mines Air Services Limited T/A Zambian Airways (in receivership) due payment of US$4,208,938 outstanding balance on accounts held by Mines Air Services Limited,” reads a letter dated July 20, 2011 and signed by Mr Sunday Nkonde and obtained by the Times.
According to the letter the payment has to be made in 10 days from the date of the letter.According to the letter the company through Escrow fuel had a balance of US$2,096,842,68 and US$5,112,095,60 on the main overdraft account.
The amount is less the subject of the case between FBZ and Development Bank of Zambia of US$3,000, 000, 000, 00.
And THE Committee of Citizens says Post Newspapers Proprietor Fred M’membe, Mutembo Nchito and his brother Nchima should honour the debt they owe Finance Bank Zambia (FBZ).
Committee executive director Gregory Chifire said it is only proper that the trio pay back the debt because it can go a long way to improve the lives of Zambians.
He said in Lusaka yesterday that it is surprising that the trio have not paid their debt when they have been calling on others, including government, to be transparent in their dealings.
“Development Bank of Zambia (DBZ) money is the people’s money and when people borrow from banks, it is only prudent that they pay back so that others can benefit from the same resources,” Mr Chifire said.
Mr Chifire said the trio should also tell the nation what they did with the money they borrowed from FBZ because it would appear that the finances were not put to good use.
He said the money which the trio borrowed can go a long way in boosting the economy if put to good use.
“US$4 million when properly invested can contribute to economic growth. Therefore, it is only imperative that the money is paid back,” Mr Chifire said.
Mr Chifire said the Mr M’membe and the Nchito brothers should not be politicise the matter because it is purely commercial.
FBZ is demanding over US$4 million from Mr M’membe and the Nchito brothers of JCN Holding Limited, as outstanding balance held by the defunct Zambian Airways at the bank.
Efforts to reach Mr M’membe proved futile at press time.
[Times of Zambia]