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]
This issue is still festering, I thought this was a dead issue now. Well, explains why M’membe is stuck with Sata for now :-)
Political proscution of membe by RB. Why didnt you harrass FJT ? You will not silence us, even if the post goes broke, we the pipo will fund it. Any way it is too late for such tacktiks in 6 months it is you who will be harrassed
PF should save these guys from the 45, thats what good friendhip should be about.Mmembe must be weeing his pants for now…….
#2 (Witness)……………i dont see any political persecution here! a debt is a debt with all signatures there. ARe you telling me that, FBZ should write off all those with loans and overdrafts with it just because it involves Mmembe????
I have seen collection Africa collecting defaulted loans on behalf of many banks in Zambia….is all that persecution???? so with others when they default, collection is ok and for others like mmembe when they default, they are angels who should not be touched. Is this what yoy call donchi kubeba????
Well said!!!
Well said
#4 You are spot on…cheers
Explains why membe is sleeping with the cobra,because history is there for all to see that he never liked sata but it seems its friendship pf convinience scratch my back I scratch yoz situ!nway nkongole ni nkongole!
FINANCE BANK WILL TRY ANYTHING POSSIBLE TO HARASS FRED
They used the money to buy Hummers and Mercs as well as build themslves Mansions…If you really come to think of it apart from the millions they got from the Task Force these boys were really plundering seized assets as well on the pretex of serving the Zambian people. They should live by example and pay this debt as quickly as possible or let them declare bankrupcy.
Imwe a debt is a debt and for that $4million dollar thats a school please.No politics involved after all they talk about abuse of office let them pay the debt as an example.The Post is going down people and sorry for Mmembe atleast this time you have found your match.Viva RB atleast you have shown some morrows.When we talk about development RB is the man.He doesnt talk to much but we have been seeing talking through development not just fake talks from PF and the under five who has never done anything to his not evn a public toilet to boost about as a sign of patriotism.
For real. Well said. There is proof of RB’s devpt projects
Am a strong pf supporter but what i have observed is that its like we bembas we own pf that’s why pf has failed to find candidates in other regions of zambia ,eg western,north-western etc. Bemba tribalism will not take our party pf. anywhere.
Just speak for yourself dear, don’t drag all bemba speakers into this baseless thinking.
ati PF Mutale who are you cheating? are you not proud of yourself chipe?speak for yourself don’t claim to be who you are not
Ewe PF Mutale@ 10
Just use your real name and talk about your under5, why do you Tongas lie to yourselves!
Dream all you like in cattle or tonga you tribalist have no chance to win and no place in Zambian politics
Is this in addition to the overdraft facility acquired by the Post for operating capital? Such levels of indebtedness are as a result of political connections; without which this firm would not have found itself in this hole. Apparently this business has been insolvent for years with huge amounts owed for statutory payments. Politicians and those with political patronage can get loans (no strings attached) even in addition to non-performing ones. In the meantime you and I will have the rule book thrown at us and suffer high interest rates. That is why this paper’s trying to sneak into government those that have promised to dig them out of this hole. And it’s also the reason politicians behave like rabid dogs once they’ve been dropped.
Explains why the Post has become PF full-time. This is the main reason why Magande was a favoured candidate for the Post, it failed……and it will fail again….what is wrong is wrong!
Fred and his Post is dirty he the potential of put his country on fire,Look at what happened in Western Province and his hate for HH.He must pay back now
When did it become wrong for a bank to claim back its money? I knew that some PF kaponya will think this is political. If this is political, i think M’membe is the one who is making this situation political by supporting Sata with the hope that he might forgive them of their several debts. They should just pay back the money without making noise about it.
Lelo lelo Wapya Membe! He talks too much about corruption and plunder of resources. He must get the justice he deserves. I saw it coming. No normal person on earth can be a good friend of king Cobra and expect to have a good destiny. Uwenda na ngoshe nokumubeya eumubeya. Membe this your end. we need serious people who can bring serious development. Not thieves in the jacket of post.
Fred Mmembe, my former pal. This is what happens when you take God for a ride. I recall your marxist days when you even toyed with atheism. Ironically, you’re now even quoting scripture in your editorials! You extolled late Levy as “Mr Clean” yet he allowed Mahtani to breach basic banking regulations and 1st lady Maureen had numerous dodgy business dealings. You wanted to anoint Magande because he was friendly to your insolvent airline but your plan backfired big time. I agree that late FJT was a thief but you’re no different; only difference is that you and your lawyer buddies are white collar crooks. You better keep your fingers and toes crossed and pray Sata wins otherwise if RB or HH carry the day, your balls will be squeezed so badly, you’ll regret the day you were born.
This is NOT political persecution but a basic commercial transaction. If a civil servant defaults on a K 1Mio loan, ballifs pounce in no time. So what makes Mmembe & Nchito different? If they guaranteed those commercial loans in their personal capacity as directors, then sorry bwana, they gotta cough up. I now understand the love triangle between Mahtani, Mmembe & Sata! It reads like something out of a John Grishammovie. All the best ba Fred and for your sake, I hope Sata wins LOL
There is no need of threatening M’membe of having his balls squeezed if RB or HH win the elections.Just encourage M’membe to pay.These events are normal in business circles.There is no business that keeps on booming without facing occasional knocks.
Your shinda pepa will be flushed be this year bwana Fred Mmeembe plus your SATANA is too ill to make noise for you so that your paper can sell mwandini this year muli muchibe ba Fred nakaliule kenu na Amos ka Sylvia .Just prepare for a very rainy day !!!!!!!!!!!!!!!!!!!!!!!!!!!!
I think you guts are being unfair on Fred – Every business man has to borrow for recapitalisation and it is a pit zambian airways became insolvent…I dont think thr Post and Nchito could fail to pay $4million as the have other portfolios.
This is RB who is trying to bring The Post to it knees…Zambian let not be cheated, imagine this country with STATE owned papers – we are doomed!
THe so called Multi partism was fought by the Post in 1991 and without it we would have still have been a 1 party state…..
Dont forget that RB and his Son Henry are busy making shoody deals..The people whom they are dealing with will be the first to report them once the lose power…watch the space….
This is one reason why we zambians don’t seem to excel in business as our business decisions are based on political connections and not on the viability of the business.And why do we have to go all the way to kenya for debt collectors?Don’t we have qualified people in Zambia?
the rantings of tuma HH sympathysers has shocked me
M’membe and SATA’s relationship is built on this premise. He has a delusion of guilty which he feels only SATA can get rid of. Now reality is taking its course, SATA is not getting any closer to plot one and these crimes will haunt you to the grave. Ni 20HH epela imwe bakabolala!!!!!
This is one of the reasons why M’membe and his colleagues were in the forefront to pressure the Zambian Govt to adopt THE DEFUNCT zambian Airways into a National Airlines so that the Zambian Govt in general and the Tax payers in particular could adopt their debt. Those who know a little more about the “Third Force”-(M’membe & Nchito associates) in Zambia would aggree that the Us$4m owed to Finance bank is just one of the many. (NAPSA, NAL, ZAR? etc). politicising everything will not help. The rulling party was not part to clandastine loans and aggreements signed by this group of individuals who were bent to distabilize the legitimate people’s choice Govt.
Looks as though Mmembe and the Nchito’s do not have a plan B on this saga. They tried to ‘nationalise’ the airline so that the taxpayer takes up their liabilities and they are still trying to ‘appoint’ a government that must take their liabilities. Why not be honest and pay up? They can not see how unfair it would be to force poor Zambians (who do not even know how the money was used) to pay for them. This is selfishness of the highest order. Please Mmembe, talk to you friends about this nkongole, come up with a plan B , plan A has failed and it is unfair.
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WTF who gives a monkeys about people who have no respect for themselves!! Piss off!!
Businesses, unlike people, are not created equal. There are certain business houses or companies which would be missed if they were brought to and end. However, life would go on.
On the same token, there are supplementary or other businesses whose collapse would cause a gigantic, huge and vast section of the economies and societies to disintegrate and collapse. Banks fall in the second group.
Fred False Prophet Mmembe has been squeezing FNB by falling to pay back the money which could have been spread as loans to thousands of Zambian for Small Scale Business Startups.
Cont…
.
Besides giving loans to big business, Banks transport money into the economies. So they are part of the fabric of Societies. Banks specialize in spreadable investments products which bring less risks.
Banks make profits by charging interest on the money they lend out than the money they have in deposits.
Mmembe should have restructured his business empire to make an effort to pay his loans and over drafts. But he become a day time White Collar thief and a night time Vampire.
When Levy came to power he had no popularity because Sata had picked up a national euphoria. Mmembe blackmailed Levy by ensuring he supported him in his news papers at the cost of getting a loan that had no collateral, supported by Mangende without the consent of BOZ – that monitors monetary movement.
.
This was the start or birth of what have now come to call “ The M5 Curtail” which lead to:
1. Mmembe,
2. Masebo
3. Mpombo
4. Malupenga
5. Mangande
Consequently, go out and attempt to stop RB in favor of Mangende so that they would continue reaping the cream.
Its’s Ironic that they all have second names that start with “M”
Cont..
.
The Share Holders of FNB have been denied good dividends over the years because chaps like the False Prophet & Nchito have been busy buying houses in the UK, when they should have been paying back the loans. Leading share holders of FNB started crying about FNB along time ago, but Mwanawasa put a blind eye for the sake of protecting The Post & Ragan Mahtani. When RB came to power and could not allow this nonsense.
Sata knows the whole story very well – that’s why he has often kept zeep in this whole saga
Zambians should not forget what happened to Meridian Bank, which was giving unprotected overdrafts & loans to a bunch of crooks who run away at the expense of small depositors that have not gotten their money till today.
Cont..
PF MMD UPND Vuvuzelas please for once shut up! This is a business slowly turning legal matter. We should be fighting for the former employees pay and compensation period. Let Mmembe and the Nchitos pay there debt and we move on developing Zambia.
On the global scale, as Bank after Bank crumbled in the later part of the last decade
(2000’s), it became clear that most their expansions had not been based on Fundamental Growth – but on Greed. The likes of Lehman Brothers, which instigated the Global Credit Crunch.
Unfortunately, the sun has stopped setting in Lusaka’s Bwinjifumu Road and the Vampire has now been caught up in the day light. Fred False Prophet Mmembe, can pay back the money. You forgot to red the fine prints. This is not political, you owe the money. Its time to restructure your empire and pay the money back. Else, Creditors will start grabbing from you.
I guess…..
“” A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain””
# 31 Mwanawakwitu
How will you develop when the fabric of development such as money is not being transported to those that need loans to startup up Small Scale Enterprise Businesses at the cost of microscopic greed people that can not meet their obligations by deliberate?
Mind you… the key to Modern Finances is a system called Fractional Reserve Banking
Today, Barclays & Standard Zambia, both have heavily opened up the door to give loans to small scale famers & commercial farmers. That is self is a good vehicle to empower the people.
Soon we will read…
The POST
Born : 1991
Died : 2011
May his soul rest in peace….
If you live in a glass house do not throw stones.
Hey! Kwena umulandu taubola. Since Mmembe had 40% shares in Zambian Airways business, The Post Newspaper Lld just needs to raise $1.6Million plus interest to settle the debt. If Sata helps Mmembe from the Thaiwanese $45Million, then the ACC may be an interested party through money laundering probes. Both Sata and Mmembe are in a fix in that Zambian Airways also owes the National Airport Corporation large sums of money. A pity Magande is out of the system. A curious questionis:Who actually owned Zambian Airlwaus? Did Bob Sichinga and William Harrington have shares in this defunct airline? The axis of evil isjust beginning to crystallise out very clearly. We pray that the Law takes its course.
Hey! Kwena umulandu taubola. Since Mmembe had 40% shares in Zambian Airways business, The Post Newspaper Lld just needs to raise $1.6Million plus interest to settle the debt. If Sata helps Mmembe from the Thaiwanese $45Million, then the ACC may be an interested party through money laundering probes. Both Sata and Mmembe are in a fix in that Zambian Airways also owes the National Airport Corporation large sums of money. A pity Magande is out of the system. A curious question is:Who actually owned Zambian Airlways? Did Bob Sichinga, William Harrington and some invisible powerful men/women have shares in this defunct airline? The axis of evil is just beginning to crystallise out very clearly. Banking is a business that thrives on provision of REPAYABLE loans. Mmembe & Co. must pay-up.
MR Chifire dont be shortsighted and so dull RB govt has removed the clause of asking people what they do with the money so dont open your mouth anyhow you are disgracing your boss
At least Zambians have now seen thru Mmembe and vindicate me for my observations since 2008. Those commentaries in his tabloid insulting RB just before the presidential bi-election gave away to any analytical and independent thinking Zambian. And his jumping into bed with Sata has never made any sense at all but instead pointed to these facts that most posters are alluding to now. God loves Zambia..ow. God loves Zambia..
This is typical Kaunda style silence the critics and the votes are all yours.Why has Banda suddenly woken up from his snooze to start proceedings to recover the Debts that Zambian Airways owed when this case is over a old now?All this should have been done when the Liquidators were appointed at the time of Zambian Airways Bankrupcy which was a year or two ago if my craniun serves me right.Cifire is a man talking with a gun pointed to his head.The money if recovered would not even be reinvested back into the Community it would go straight to MMD campign trails.Its about time Zambians woke up and smelt the p00 that these politicians have been smearing us for the past 47 years or so.We have gone backwards as a country our infrastructure is delipidated and roads are all maize fields.
This is a business transaction. The fact is The Post Newspaper guaranteed the loan and Finance Bank wants its money back. Just because you love the Post so much does not mean you should support them in fraud. The Post should pay back the money. Imagine how many business could have started up with that kind of money. How money people would have gotten a mortgage. How many people would have gotten a loan to build a house. How many people would have gotten a loan to expand their business.
Pay back the money Mr. Mmembe.
Job well done Mr Cifire. Now ahead and release the full list of all people who owe FBZ. I’m reliably informed that Ministers top the list. So don’t leave them. You are practising selective which hunting.
Which one would go a longer way in developing the nation? The loan (which the bank knew could be defaulted on) or the money which was to be recovered from by the Task Force with the help of the London Court from FTJ? Or is it the $8 million that FTJ supposedly claimed to have put in Zambian coffers? This was a loan, and the default on a loan is considered the Risk of doing business. The Post, whether you like it or not will still do its job this year. See Banda out of office. Mmembe and the Nchito brothers are acomplished lawyers and will never have had left themselves vulnerable in that loan. Zambian Airways was a Limited Liability Company. And it ends there. Business Law 101. You will gnash your teeth with hate, but it wont change that fact. Weep Not, MMD Children.
Thanks for objectivity.Most of the bloggers do not understand or know what they are talking about.I quess they are just doing it for the sake.Please make them understand a business transaction, Companys Act 1994 as amended about a limited entity.Thanks for your contribution.
Can someone explain to me why FBZ would lend out such huge sums of money without any collateral? in this regard i blame FBZ for doing business without fully excuting procedures and policies they make.
i agree that when you are doing business there are risks involved and you may end up bankrupt and fail to pay back the loan but Mr meembe is not bakrupt. he should pay the bank the money he owes them. i dont know what the law says and honestly am making the comment with the little knowledge i have but decency demands that when you borrow you pay back..even sata will not tolerate this kind of nosense of people getting money ‘misuse’ it and go free in expensive cars.
#42 I think Mangande would be in a position to answer your question.
was magande one of the directors at the bank? if i recommend a friend to you it still remain your responsibilty to make sure your money is safe and will make profit..if the deal fails you will not come to me and say wamona the guy you brought..
let the chaps pay..give Ceasar what belongs to him..Fred you ve been caught napping..if anything they should just clsoe the post..
Akalimba kakwashima……
I see a lot of people going into rehab after the elections. PF you can support your crook Mmembe, the truth remains that you will cry this year when Sata says his farewell to politcs. This idea of collecting people in trucks and buses from different towns parading them up in front of the Post to claim popularity will give you a wake up call on election day. MMD will win this year. Period!!
Politics aside: Mmembe & Co are in trouble. Corporate law is straght forward. This is where lifting the veil of incorporation comes into play. Then next is ZRA, NAC, etc. And interpol is watching them and CIA has interest in western province militants because of the Taliba factor. Every dog has its day…Did I also mention that PF said they have recruited ex defence persons for this election? Now the $45 million comes in…
POST failed to report on this story today, lets wait and see if they touch on it tommorw, 25/07, I strongly doubt they will thou.
Where is Magande? He is highly unprincipled, this is why he has gone into oblivion. This is the same way ka Mulongoti, Bragadasho and Masebo will end up. Magande was in the middle of the Zambian Airways saga and Meembe and friends are uncooth crooks who are so bitter, yet some quarters decide to put a blind eye to this crookedness but are the first to shout corruption at the slightest opportunity. What is wrong is wrong!
i concur with #4…Fact is the money is owed!! Lets forget about the personalities involved in this. If anything Mmembe & Co. should have taken steps to deal with this if they knew it would one day be used against them. pay up i say!
Big Pipe@17. You say “this is not politocal but commercial” so why are we even talking about a private business arrangement on LT? Why is Cifere issuing statements about agreements which are between business entities? You are so transparent
Now I get the RB logic in Finance Bank. Persecute Mathani, Grab his Bank and have access to its debtors who also happen to be your sworn enemies. All this without breaking any law. Clever! Well let Mmembe and his friends pay what they owe. The retrenched workers need their dues. W e will deal with RB later. AFTER WE HAVE DELT WITH sata FOR ALL HIS PAST MISDEEDS. Every dog has its day