The suspension of Zambian Airways operations has largely been attributed to the huge amounts of money it owes its creditors which now amounts to about US$25 million.

According to the latest edition of Executive Issues obtained in Lusaka yesterday, the airline had become bankrupt and its board and management had tried several rescue measures to resuscitate its operations but to no avail.

“Liquidation is the only answer, but even then the creditors will not recover their monies,” said a risk compliance manager of a local commercial bank.

The commercial bank for which the senior manager works is among other financial institutions that have been loaning the airline millions of dollars.

He said the US$25 million debt was mainly from big creditors and if other smaller suppliers added what they were owed, the whole amount could go beyond US$30 million.

“They will need a Government bail-out for them to survive but it is very unlikely that the Ministry of Finance will use State resources to keep a private airline in the midst of various problems affecting the country especially in the mining industry,” he said.

The directors of the airline are Post Newspaper editor, Fred Mmembe, Task Force on Corruption prosecutor and Lusaka lawyer, Mutembo Nchito, hotelier Gaudensio Rossi and Passmore Hamukoma who is board chairman.

“We hear three commercial banks are contemplating lifting the corporate veil on the airline so that directors and shareholders should be made accountable for the debts which have accumulated in recent years,” the manager said.

The shareholders of the airline are JCM Holdings owned by Mr Nchito and his brother Nchima, Seaboard which is a United States firm that owns and manages National Milling Corporation and the Post Newspapers.

The Post Newspapers injected US$3 million in the airline using a loan facility from Investrust Bank.

Executive Issues reports that attempts had been made to attract investors to buy the airline but most of them have not been impressed with its financial position which got worse when the global oil prices tumbled on the international market.

[Zambia Daily Mail]

To whom it may concern,

I am a youth leader in the Patriotic Front (PF). My concern is the behavior by which the Police Club in Chilenje has been operating.I have witnessed so many times that this place opens the tavern as early as 06:00hrs.This I strongly condemn. It seems that the Police have taken the law in their own hands by selling opaque beer [brown and white chibuku].I am therefore asking the local authority where ever they might be to immediately enforce the law at this Chilenje Police Tavern.

The drum used to store the opaque beer is so filthy.Even the toilets are very dirty and looking at the season in which we are I think people who drink from there are at risk of suffering from waterborne diseases among them cholera.The surroundings looks like the place where retrenched workers who have not been given their terminal benefits stay.

This is the place where the security personnel have been subjected to using [ulusasa].They have made for themselves thatched bathing rooms outside their houses.When you look at the walls of their houses you even wonder where the charges they collect goes to.

It would be nice to have the drainpipes connected so as to have running water. Lower ranked police officers should also be entitled to have nice bathing rooms.Lets have cabins scraped off as this contributes to the filth in the camp.There should be sanitation in all police camps.Now it is only few individuals who are on higher ranks who enjoy cleanliness.
Please I am appealing to the council to apply the law where it is due.Do not let corruption and fear of the unknown kill our country.The council should work hand in hand with the Chilenje Police Sub Inspector. Lets not act as if when burying our late president at embassy park we also buried the laws.It is only discipline to the law that can help the nation to move forward.Lets keep our country clean.

Yours

Concerned Zambian

Defense Minister, George Mpombo, says politicians inciting the defense forces are committing a treasonable offence.

And Mr Mpombo revealed that government has raised K20 billion to build housing units for defense forces.

Mr Mpombo, who reiterated President Rupiah Banda’s advise to politicians to desist from provoking ‘the men and women in uniform’ said security issues should be separated from politics.

Speaking at a press briefing in Lusaka yesterday, Mr Mpombo regretted that some politicians want to paint a picture that government is doing nothing to address the needs of the defense wings.

He pointed out that politicians should not spread their tentacles of confusion in the defense force saying there should be limits in politics.

“We must guide our peace jealously. Zambia has been sending Peace Keepers to countries devastated by wars some of which are caused by careless politicians. Politicians should not masquerade as irresponsible citizens by issuing inflammatory statements,” he warned.

He said election time is over and people should settle down and work for the well being of the country.

Mr. Mpombo wondered why some politicians are attacking President Banda on trivial issues saying the detractors will not divert President Banda and his Cabinet’s plan and focus for the country.

“We are committed to the well being of the defense Forces and the country will be run accordingly,” he said.

Meanwhile, Mr. Mpombo said government released K20 billion at the end of last year to build houses for the defense security.

He explained that construction work will start as soon as possible saying government is not happy to see members of the defense wing living among civilians.

He said government is further contemplating revive the Builders Brigade in all wings of the defense force so that the construction work can be done well and on time.

Mr. Mpombo emphasized that government wants to be pro-active and would like to see a positive change in the well being of men and women in uniform.

ENDS/CBM/ZANIS/SJK

The Zambia National Farmers, ZNFU, in Mazabuka has welcomed the arrest of a transporter suspected of involvement in a scandal in which over 200 bags of fertiliser and Maize went missing.

ZNFU Mazabuka District Agri-Business Manager, Clement Phiri, told ZANIS in Mazabuka today, that the swift action by Police to arrest the suspect deserves commendation.

Mr Phiri said the arrest of the named transporter, who allegedly has strong political backing, would serve as a warning to individuals that no person is above the law.

He said ZNFU is particularly cheered with the arrest because the suspect was boasting of immunity against prosecution despite having committed the offense.

Mr Phiri has, however, appealed to the affected farming community to exercise patience as Police intensify the investigations into the matter.

Meanwhile, Police in Mazabuka have released a suspect, who is alleged to have received the fertiliser consignment from the transporter on behalf of farmers.

Police sources told ZANIS that the suspect, who was picked after Police traced the National Registration Card number was released after the transporter cleared him of the allegations.

Police said the transporter will appear in court soon because it has now become apparent that he actually committed the offense alone.

ZANIS/ENDS/HC/SJK

The decision by Patriotic Front, President, Michael Sata, to direct PF councilors to go ahead and approve the budgets for their respective councils has cheered the Civil Servants and Allied Workers Union of Zambia, CSAWUZ.

CSAWUZ Vice president, Beatrice Nyirongo, says it was important that the councils approved their budgets for the benefits of various community projects.

She told ZANIS in an interview in Lusaka today, that Mr Sata had done the right thing for his party, the council and the people of Zambia.

She added that once the councils approve their budgets people would benefit in their respective areas as the councils would start embarking on different projects.

Mrs Nyirongo added that most of the projects in different areas stalled because most councils had not approved their 2009 budgets.

She has also advised politicians not to do things as they please but listen to the will of the people as they are the one who put them into offices and should be put first.

The CSAWUZ added that money was very important in the lives of the people as it is a driving tool.

Mrs. Nyirongo has since urged the councils that once they approve their budgets and they know the out come, the money allocated to projects should be used for the intended purposes adding that discipline must be observed.

She said with the rains the country was experiencing the councils need to approve their budgets in order to start working on projects such as the drainage systems and garbage collection.

Recently, the PF Leader Sata rescinded his stance and asked his Party councilors countrywide to go ahead and approve the budgets for their councils.

ZANIS/AJN/ENDS/SJK