ZAMBIAN Airways, in receivership, owes three banks a total of US$5.9 million (about K28 billion) in secured loans.

And the National Airports Corporation Limited (NACL) has disputed the appointment of a receiver of Zambian Airways’ assets and undertakings.

The defunct airline also owes its employees K3.4 billion in salary arrears.

This is according to the company’s receivership manager Sipho Phiri, in his affidavit in support of summons to stay the default judgement passed in favour of the NACL.

This is in a case where the Lusaka High Court passed the default judgement early this year after Zambian Airways failed to defend itself against legal proceedings commenced by NACL.

The case was scheduled to come up on Monday, September 14, 2009 for inter-parte hearing of the stay of execution, which Judge Prisca Nyambe ordered in June this year.

However, the case could not take off as Ms Justice Nyambe was committed to other official business and adjourned it to October 1, 2009.

Early this year, Ms Justice Nyambe ruled in favour of NACL, which was claiming over US$2 million from Zambian Airways in unremitted passenger service charges, parking fees, ground, navigation and air handling charges.

In his affidavit in support of summons to stay execution of the default judgement, Mr Phiri said the three banks Zambian Airways owes are Investrust Bank (US$1,484,336.18), Intermarket Bank Zambia Limited (US$1,440,620.93), and Development Bank of Zambia (US$3,014,006.68).

Mr Phiri said the employees are owed a total of K3, 408,356,930.50.

He said after the default judgement, Investrust Bank Zambia Plc appointed a Mr Kieran Day of Kenya as receiver over all assets and undertakings belonging to Zambian Airways.

Mr Phiri said this was by reason of a floating charge and debenture to secure the US$1,484,336.18 loan.

“The plaintiffs (NACL) have tried to execute the default judgement when they know that the defendant company (Zambian Airways) is in receivership. They have sought to proceed with the matter against a company in receivership without leave of any court,” Mr Phiri said.[quote]

And Zambian Airways lawyer Ngosa Simachela said since the company is in receivership, as at April 2, 2009, its assets no longer belong to the defunct airline but to the receiver.

Ms Simachela said the sheriffs have since seized Zambian Airways vehicles in execution and reliance on the attachment order, which Ms Justice Nyambe granted to NACL.

“Before the appointment of the receiver, the assets remained in the ownership of Zambian Airways and were freely disposable without reference to secured creditors. The appointment of the receiver completely assigns the company’s property to the creditor…” Ms Simachela said.

She said allowing NACL to execute the judgement will disadvantage Zambian Airways’ secured creditors and favour NACL, which is an unsecured creditor.

But NACL company secretary Elita Mwikisa has disputed the appointment of the receiver, saying the appointment came after the Lusaka High Court had granted her organisation the attachment order over Zambian Airways’ assets.

The order restricted the airline from accessing, interfering with or disposing of any asset included in the order.

Ms Mwikisa said in her affidavit in opposition to inter-parte summons for stay of execution that by the time Ms Simachela was filing her affidavit, she did not have instructions from both Zambian Airways management and the alleged receiver.

“Evidence of appointment of the alleged receiver for Zambian Airways could not be produced before this court as the lawyer who purported to act for the receiver had not filed and indeed did not have in her possession relevant documents relating to the alleged appointment of the receiver,” Ms Mwikisa said.

She said documents attached to Ms Simachela’s affidavit did not prove that the named person (Mr Day) was appointed as receiver.

“The particular goods and chattels of the defendant (Zambian Airways)…were not and are not affected by any subsequent crystallisation of any floating charge in respect of which a receiver was appointed…” she said.

Ms Mwikisa said bailiffs who partially executed the default judgement, by seizing motor vehicles belonging to Zambian Airways, perfected the order of attachment.

{Zambia Daily Mail]

The Patriotic Front /United Party for National Development (PF/UPND) pact says the Kasama Parliamentary by election will provide a litmus test for its popularity.

Meanwhile, the PF/UPND Pact and the ruling MMD will tomorrow announce their candidates for the Kasama Central by election slated for October 15.

Pact Co-spokesperson, Given Lubinda said in an interview in Lusaka today that the Kasama parliamentary by –election will show case the popularity of the pact in the area.

Mr. Lubinda said the pact has worked hard to ensure that it wins the forthcoming by – elections, this time around

He said the pact has learned lessons from the Chitambo by-elections and has checked every threat adding that no stone has been left unturned.

Mr. Lubinda, who is also PF spokesperson, said the pact is certain of victory in the October 15th Kasama by-elections gauging by the amount of support they have received from the people in the constituency.

“The people started campaigning for us in 2007 after, Dr. Chishimba rebelled against the party, so all this time the people has been calling for his resignation and when he resigned it was a relief for us.

” The party is now bubbling with confidence that we will have a sure victory,” He said.

He further said the pact had not yet announced the name of its candidate for the by-elections as it was awaiting its Central Committee verification programme on prospective candidates before a final one can be picked in Kasama.

Mr. Lubinda said the Central committee had gotten all the information on all the 12 candidates willing to be candidates under the PF/UPND pact but had halted in order for them to get verification from the district and provincial committee in Northern Province.

He said the pact wants to be sure of who will represent them in the October 15 by election adding that they want a credible candidate who will give them a sure victory.

He said the leadership in the province has listed all the 12 according to their abilities and will hand over the names to the party secretariat today but will announce tomorrow.

Meanwhile the pact has distanced itself from political parties have started campaigning in Kasama even before the Electoral commission of Zambia (ECZ) declared date of September 17 to October 14.
Mr. Lubinda said his party has hearkened to the set laws and will only start campaigning after the nomination day on Thursday this week.

The Movement for Muilti-Party democracy (MMD) has also announced that they will announce there candidate tomorrow.

This is the second by elections that the recently formed PF/UPND pact will participate the first one was Chitambo which was scooped by the MMD while the pact won the majority of the wards by-elections.

ZANIS

A CLERIC has given former Defence minister, George Mpombo a 48-hour ultimatum in which to tell the nation the real reason for his resignation and stop attacking President Rupiah Banda failure to which the preacher will spill the beans.

Evangelical Youth Alliance International president Moses Lungu accused Mr Mpombo of having started practising politics of tribalism and called on him to exhibit political maturity.

He said the member of Parliament (MP) for Kafulafuta had a lot to tell the nation and should do so within the next two days failure to which he would reveal to the nation why he resigned.

“Mr Mpombo owes President Rupiah Banda an apology for his attacks. We expected Mr Mpombo to be a quiet person after he resigned and he should concentrate on the development of his constituency but now it is like he is regretting having resigned,” he said.

Rev Lungu said as a senior politician, Mr Mpombo should lead by example and show the young people clean politics instead of engaging in acts that border on tribalism.[quote]

He said while he was minister, Mr Mpombo did not do much for his constituency and now was the time to concentrate on developing it instead of politicking.

He said the youths were disappointed by Mr Mpombo for his politics of abusive language and called on him to change.

Rev Lungu said Mr Mpombo should not take Mr Banda’s maturity in handling criticism for granted.

He wondered what had gone wrong now since all along, Mr Mpombo did not talk about any problems in the MMD.

Rev Lungu said Mr Mpombo had continued earning his income as MP because of the MMD and it was unfair for him to continue attacking the party, which promoted him to be where he is.

He said without the MMD, Mr Mpombo could have not have acquired the wealth he had, hence the need for him to be appreciative.

[Times of Zambia]

ACTING MMD spokesperson Mike Mulongoti has said Katuba Member of Parliament Jonas Shakafuswa and other MMD members who are not happy with the party should resign.

Mr Mulongoti said in Lusaka yesterday that Mr Shakafuswa should peacefully leave the MMD instead of regretting being a member of the party.

In an interview, Mr Mulongoti said the former deputy Finance minister should leave the ruling party if he was not happy about certain decisions the leadership had made.

“A political party is like a club which one joins voluntarily. When you are not happy you go away quietly,” he said.

Mr Shakafuswa at the weekend told Muvi Television in his constituency that he regretted belonging to a party where leaders were now trying to defer the national convention.

The MP said the MMD party convention should not be deferred because it would be undemocratic.

But Mr Mulongoti said a political party was like a club and all the members should abide by the rules failure to which they should voluntarily vacate.

He said politicians, like any other citizen, had the freedom of association which Mr Shakafuswa should exercise by leaving MMD instead of continuing to regret belonging to the party.

Some MMD MPs having been criticising the party following calls from several provinces urging the national executive committee to postpone the party national convention until after the 2011.

Former Finance minister Ng’andu Magande said some party members wanted to postpone the convention where one agenda item was to elect party president because they were scared that he would win.

[Times of Zambia]

Government says the restriction of broadcasting licenses in certain geographical areas will not hinder digitalization of broadcasting in the country as suggested by some sectors.

Chief Government Spokesperson, Ronnie Shikapwasha says Zambia has in the past used analogue technology in its broadcasting adding that those allowed to broadcast nationally are still able to do so.

In a press statement made available to ZANIS in Lusaka this evening, Gen. Shikapwasha said broadcasters will only have to migrate because of the deadline set by the international Telecommunication Union (ITU) for the entire world to migrate from analogue to digital.

He has further advised operators whose licenses restrict them to certain geographical areas to move to digital but remain in the areas allowed by their licenses.

General Shikapwasha, who is also Information and Broadcasting Services Minister, said no one would restrict broadcasters from using digital technology.

He said experts criticizing government ought to know that one can still remain in the allowed area of operation even with digital technology if the signal is taken to satellite.

He said that broadcasters can not pretend that government is stopping them from using the modern technology as they make choices themselves at the time of application.

Gen. Shikapwasha noted that there seemed to be a misunderstanding between the two among those condemning government for trying to maintain sanity in the industry by stopping illegalities.

He added that there was need to understand that even after migrating from analogue to digital broadcasting some broadcasters with community licenses will remain restricted to community broadcasting.

He said government desire to move with time and adopt modern technology in the electronic media would not see regulation of the media by government being flouted on the pretext of using modern technology.

The Chief Government Spokesperson has said that government would soon embark on a mammoth sensitization programme on migration from analogue to digital.

He has since advised people wishing to go into radio or television broadcasting to apply to Ministry of Information and Broadcasting for appropriate licenses in their desired operations.

ZANIS