The Food Reserve Agency (FRA) has seized property belonging to GBM Trucking Limited in Lusaka to recover more than K2 billion owed to the agency by the company.
The seizure of the building in the capital city comes in the wake of the company’s failure to settle about K522 million with interest, which the company had borrowed from the Government’s crop marketing agency in 1998.
GBM Trucking and GBM Milling had in 1998 deposited title deeds for the building as collateral for a K522 million loan from the FRA but failed to settle the debt when it was due.
A Times reporter who toured the premises, which are also used as Patriotic Front (PF) secretariat in Vila Elizabetha, found the gates locked with security officers manning the building.
FRA legal counsel, Chola Kafwabulula said in an interview in Lusaka yesterday that the company had failed to settle the K522 million with interest, which made the agency seek legal redress.
Mr Kafwabulula said the agency then took the company to the High Court where GMB Milling lost before appealing to the Supreme Court where the lower court’s ruling was upheld.
“This is purely a commercial transaction without any political inclination to it. This is as a result of the failure by the company to settle the loan even after losing in the courts and we now want to recover our money,” he said.
Mr Kafwabulula said the money would be recovered with interest and now amounts to more than K2 billion.
He said the agency would start evaluating the property before advertising the sale of the building.
“If we find that there is any change after evaluation, then they will get it but soon you will see the adverts in the Press on the sale of the seized property,” he said.
Efforts to get GBM proprietor, Geoffrey Mwamba failed by Press time as his mobile was switched off.
And PF spokesperson, Given Lubinda said he could not comment on the matter as he had not been to the seized building.
[Times of Zambia]
I hope that bloggers will not put any political connotations to this purely commercial issue. But if they wish to do so, please advise all politicians to be squeaky clean when they want to be in the political arena. The good thing about this matter is that there is no theft involved, just a pure business transaction that went before the courts of law as far as we can see.
Seize from all the ministers as well. Iam sure GBM is not the only debtor that FRA has. And bena Kapoko, can we see a speedy conclusion to their cases. Also deal with the civil servants who have failed to retire imprest worth K445 billion.
How big is the company? I am sure the owner would have raised more than the amount through the LUSE or would have borrowed from some banks to settle the debt but that would cause another debt.
Whatever the case, I am sure there was a way for the company to settle the debt.
Boma…..commercial reasons my foot! Learn from Austin Chewe,make your money quietly and dont be fooled by dead woods like SATA to join politics esp in the opposition when you know you owe BOMA some money.
Well as they say, ” BOMA NI BOMA, Tiye, Uza kamba Kuso golo”
Anyway this is just what is sick about our country. There are just no systems that are predictable and can be trusted. Am sure RB’s farms owe the FRA some money but because he is a president no one will touch him until he is kicked out. I wonder what happened to the story of RB’s wife still be on a teachers pay roll. Truth be told if GBM was an MMD MP, nobody would have heard about this and can the FRA be transparent and publish the list of politicians who owe them money, otherwise I will treat this as victimisation of the opposition, what me what you want. This is not business, but politics. FULL STOP.
Instead of paying his debt he must have used the money for campaigns in Kasama by elections. Tough luck for the guy.
”This is purely a commercial transaction without any political inclination to it” says Mr Kafwabulula. No sir you’re lying, what do you take us for? fools huh? Thats why this country is hundred years away from any meaningful development, if it were not for my mum, brothers and sisters still in Zambia i was going to change my citizenship and have nothing to do with this useless country.
EXCERPTED: And its been learnt that all GBM buses ge got on notes have drifted into red. Each is not 80% in bad debt and GBM has been warned by suppliers that a swing is on the way.GMB who 85% depends on supplying food stuff to GRZ institutions is having nightmere against new orgainised and finacially sound competitors.GRZ is challenging him to supply first before payment without any deposit as it were.
EXCERPTED: And its been learnt that all GBM buses ge got on notes have drifted into red. Each note is now at 80% in bad debt and GBM has been warned by suppliers that a swing is on the way.GMB who 85% of his business depends on supplying of food stuff to GRZ institutions is having nightmare against new orgainised and finacially sound competitors.GRZ is challenging him to supply first before payment without any deposit as it were. He is stretched thin on obligations and overdrafts.
I hear another one is Enock Kavindele who has become economically embattled since the death of his brother in-law Angola’s Jonas Savimbi.Credibors like on GBM are cutting him into sizes from left and right. Woodgate holdings and KB Davis have had creditors swinging on him. he has become so desperate that he is now confering medals on anyone of the street.Even ex-communicated outlawed Frank Bwalya will be confered a Kavindele imaginary medal soon after he has done it today on sata.
#1 Katie Good- What you say is correct but one thing I have seen is that these debts only become public when one quits or opposes the MMD. I know of an MMD cadre who was mentioned in the AGs report of having failed to make even a single payment towards the 2.5billion he borrowed from DBZ. This loan has been outstanding for many years but nothing has been done to recover this money. But as soon as the man leaves MMD I can assure you the bailifs will not take even a minute to recover the money through seizure. Yes debts must be paid, but there should not be any segregation.
This is shame..quite alright it is a business transcation.. but political interference can not be ruled out. The bottom line is with a selective justice system,,,from KK, FTJ, LPM (MHSRP) and now RB. We need to transform our politican and business landscape …and i’m not sure even Sata/HH combo can do it. For GBM i’m sure you have even ‘fat’ to survive the storm.
This animal called FRA…pandora box proper.
GBM is broke!
Everything he has is bonded to the bank.
His busses are on lease, his car is on lease, his accounts are overdrawn, his house is on mortgage, his mill is colateral at the bank.
This man is broke!
Now he is going to sell his Kasama seat to MMD in 2011 after all he never reached grade 12 and now you need a grade 12 certificate to stand as an MP.
Is this not the same bag of mealie leal representing Kasama in the House of Parliamernt?
Just imagine what kind of leaders we are putting in place. Do you expect good leadership from people like GBM?
Ifyabupuba mu Zambia tafyakapwe – -ati no political inclinations when the buildings in question house the opposition secretariat? amano yamumpanga.
More PF/UPND senior officials and those that have left MMD and become critical of it will be persued by NyamaSoya. Wait if not ZRA then it’s FRA or ACC or Kabonde’s gang. wait. Zambia is entering a circus mode, the ringmaster NyamaSoya playing the pipper.
Ha Zambia the real Africa. A country with hot climate, vernomous snakes, crocs, rigged elections and YamaSoya. What do u expect??
pliz retain the nkongole bane ..thats a very bad attitude with Zambian politicians..
#15 & 16 mulimashilu bonse balili thats why you punks die broke. don’t you know that most wealthy people have a lot of debt? its called financing. Have you had a look at the list of FRA debtors? how many of these have had their property seized? Do you even know why GMB is having problems with his businesses? You punks are so ignorant it scares the life out of me.
Can you imagine if GBM was in government? All this debt would have been swept under the carpet and eventually written off. Now one perhaps can understand why these guys who appear ‘rich’ want political power.
I am so critical of NyamaSoya. So the ACC & DEC visited me last Friday as well. After finding nothing in my Chongwe house I live in, they took my bag of charcoal after accusing me of contributing to de-forestation. It was just brought back yesterday after I convinced them that it was sold to me by the MMD Chongwe Constituency Chairman. So the harrasment continues to all critical of NyamaSoya.
#20 – You do not need to have debts in order to be rich. Who cheated you that rich people have debts? Are you talking of dirty money or free and fair cash. You should go back to basics in economics and read so that you understand the difference between the rich and the poor. Those who become rich through dirty corners can not be compared to real rich people. Back to school!
#23 waledoger mu class iwe. have you ever heard of free cash? which economics did you do? from university of chimbamilonga? do you know what net worth is? do you know how to interpret financial statements.The problem is you dont take time to go through some financial statements and look at the balance sheets. Do that then maybe you will see the debt i am talking about you ignorant man. such a shame. maybe I should lend you my son’s economics book.
Credit is money.There can never be a business without credit.When one gets credit,s(he) has the legal responsibility of paying it back with interest within the specified period failure to which credit loses its meaning.The problem with Zambian “businessmen” like GBM are quick to sign papers without reading the corresponding consequences when s(he) defaults.There is no politics in business!!!
# 25 sharp shooter. you are very correct terms are terms and need to be adhered to. you speak like someone whose been to school and knows what they are talking about unlike some pipo we have in our midst. One question to you though, are you really convinced there is no politics involved in this particular case?? can you bet your index finger on it??
This is only being done to GBM because he is Bemba because RB is a tribalist.
manje how can this have no political inclination when nima office yaba PF…i can be u that some pipo in the country owe more than the said figure…But then again..Mudya Mweka Daddy MMD has worked
Kasamanians, “When you vote me i wiill fiund all constituency development programs from my pocket” GBM
On victory day “Give me the constituency development budget for fundiing as soon as possible i’m in a harry without looking to GRZ for development” GBM
Meanswhile he is failing on all basics in the supply tenders he has been pursuing from GRZ entiities.
Debtors are chasing on their money
Suppliers are chasing on their notes
The buses he got notes without anything down he has only paid 15% on each.
Zambians have found his buses to be death traps without insurance contrary to the Road safety law
They have quit them
His buses have had highest rate of major accidents
National Milling and other millers have crash his GBM roller milling
ZRA has found him evading…
#25 Chipena
Its has become natural for us Zambians to accuse the Govt of interfering even when its not the case all cos its an opposition defaulter.Does it mean that opposition figures should default and go scot free?I think NO cos it will be FRA who will fail at the end and the same should happen to any other debtor be it govt official or opposition.Look at the case and you will discover that GBM has be fighting them all the way to the Supreme Court instead of meeting his legal credit obligation/\.To me thats bad entrepreneurial behaviour cos whne on has a record of defaulting,no creditor will be willing to help that person hence hampering his own development.
There is more to this than what meets the eye ala Boma ni Boma those are the rules of the game.Reminds me of the late dean mungomba who lost his fortune overnight because of being a pain in the groins of freddy.Too bad GBM is now swimming in the same waters hope he will see the shores soon.:-?
He owes ZESCO, Lusaka water and sowerage, the council on property rates and workman compensation fund a cummulative K 2.3 billion. Yeasr of no remittances have caught with GBM. He is bankrupt he must resign now.
#24. From the way you talk, one can tell that you must have been very bad at Book Keeping in your grade 8. And I am sure you must have done very badly at grade 9. We are not talking about balance sheets and the other little knowledge that you read in a 10 pages BK book. We are talking about people who get rich through paper and pen and those who steal. Statistically, people who use their pen are better off than those who use other means. Can you start night school and do simple economics?
#5, Papa J,
After reading all the blogs so far I find your views on this report to be the most accurate analysis and it is not surprising to those who have keenly followed the sad happenings in our country.
#22 Mpangula, I am bursting with laughter at your bag of charcoal experience, please bear with me, did you really go through that?
Can someone make me undertand the diference between credit and debt? From what I can remember when you give out (Lend) 10pin, it counts as credit to you because it is your money which should come back and debt to the person receiving it because he has to pay back. #25&26: Are you sure you are not confusing the two?
35(DC)
Credit:An arrangement by which a buyer can take possession of something now and pay for it later or over time.
Debt:An amount of money, a service, or an item of property that is owed to somebody
# 35 DC,
You asked-Can someone make me undertand the diference between credit and debt?
Yes we can.Let me help you while others can fill in. We have to get serious and help those who humbly ask for help.
What Does Debt Mean?
An amount of money borrowed by one party from another. Many corporations/individuals use debt as a method for making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
Non-Recourse Debt
A type of loan that is secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral, but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. This is one instance where the borrower does not have personal liability for the loan.
Net Debt
A metric that shows a company’s overall debt situation by netting the value of a company’s liabilities and debts with its cash and other similar liquid assets.
Calculated as:
Kapena manje bazayondako because azayamba kudyela delele che. Seriously, what is $27000 in Zed kwacha? Cant Sata help him out?
Credit
1.A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.
2. An accounting entry that either decreases assets or increases liabilities and equity on the company’s balance sheet. On the company’s income statement, a debit will reduce net income, while a credit will increase net income.
@Chipena
Dude, you are right. Don’t waste your energy on thick heads who do not understand debt financing. In normal economies, which Zambia’s isn’t, if you have never contracted and serviced debt then you are not credit worthy. Go figure.
Ba Senior Citizen you are guilty of perjury. You lifted information from investopedia without adding a single vowel.
#42 Clearly GBM is not able to service his debt hence his current predicament. Why do people want to blame RB if GBM can not manage his personal affairs?
Even in ‘normal economies’ bailifs come knocking at the door if you cant service your debts. Are you saying that GBM should not pay his nkongole because he is a PF mp?
Those who know GBM well, he has been surviving on over drafts. He plays big but he is full of Debts. Fake businessman.
thje other time he was suspecting his Nephew of doing his Wife sure this politician is rotten No wonder he has problems all over around his businesses.
No of us here have any clue of GBM’s business empire nor his financial transactions. 1stly. GBM Trucking Limited IS NOT GBM Milling Company Limited NOR GERMINS Motorways Limited. The story is blurred cause I think they say its the Trucking company that borrowed and defaulted. I think GBM Trucking has been defunct for many years now as I can’t remember when I last saw any truck on the road. As with all companies, creditors will exist and on liquidation all creditors, according to ranking will seek to be repaid. The matter would be in court for disposal of Assets and distribution. Anyone that knows GBM knows that that office he had for many years under the trucking coy. has nothing to do withhis other businesses.. Business acumen in Zambia is really lacking looking at some contributions
If you are an owner of mutliple companies.. each one has its own assets and liabilities.. as did GBM trucking.. Including Taxes unpaid ( PAYE, VAT, Corp Tax) .. and a a company is a legal entity of its own with no recourse to its shareholder unless the shareholder agreed and signed a Guarantee on behalf of teh company during its financing or trading activities. again to the limit of the guarantee will the shareholder be liable for the business liabilitities.. As regards the tittle deeds.. lets used proper terms.. FRA simply placed a FIxed Charge on a specific Asset of the GBM trucking. In this case, leasehold Property situated on Chandwe Musonda road. ALL BUSINESSES DO THAT AND HAVE DONE THAT! everywhere in the world. Property retains value so good finacing leverage..
And those here that think GBM is broke because of the financial and business prospects of one of his lesser companies / businesses are mis informed and a little ignorant of business, corporate world, Trade, Company operations & law, etc GERMINS Motorways some one referred to is one of the large fleet operations in Zambia with over 60 luxury business costing between $250,000 and $450,000 each! We talking about $14million dollars (K70billion) asset value approx. with great revenue streams (Daily, Cash & growing market, brand stregth). the prospects are better than trucking right now with is very difficult.. The man you are talking about is driving BRAND NEW GOLD 2008 MERCEDES BENZ S630 AMG FULL HOUSE worth at least $400,000. (K2 billion). What are u talking about?????????
# 49 Digger Dont waste your time with most chaps here. They know pipo from newspapers and want to cheat others. GBM might not be educated but the man has made lots of money. Look at # 46 calling GBM a fake businessman . GBM has been running profitable businesses for sometime. Dont be jealousy,he has made it. What have you got to show # 46 ? Nothing just talk. Please do not mislead people on matters you dont know.
Let him pay fyakulandauka is not good, that is business. If he is rich why is he defaulting instead of fulfilling. Can we not talk about problems we can not help solve? You are the same people saying the Gvnt does not work.
# 24 So you are relying on your son’s knowledge to argue?
Digger @ 48& 49…And Motsepe @ 50. Let us use simple reasoning. For years why has GBM been failing to pay if he stinks of such implied billions?
The courts are arbitrators. GBM borrowed from FRA and has not been servcing the Loan. FRA sued and through the processes of our Courts upto the Supreme Courts, they have confirmed that the borrower has not been paying back. Any issues towards liquidation have to be through the courts and must be a different action!. It might be true that Mr Mwamba is not servcing Loans obtained for the buses as well. I hope GRZ through MoFNP( National Assembly) only extended monies ( Car Loan) enough for the pro-rata period he will be in parliament! Nkhongole izi!!!!
#53 Josef P and #54 Madesta.. Company Law gents. GBM IS NOT GBM TRUCKING LIMTED! GBM Trucking Limited is the Borrower vs FRA the Lender! GBM, the person, was Director and happens to be majority shareholder(who even knows). There was no writ of summons on GBM the person. because he is not a company. so teh company Assets + Liabilities are not his!! People understand business principles. When FRA entered into the business trasaction with GBM Trucking Ltd , they needed Securitisation and asked GBM trucking Ltd to pledge one of its unencumbered, quality assets . which the did. so FRA has legal recourse and they got it. They alwas had it. for years. I havent seen the the Financial Accounts of GBM Trucking so dont know about reasons for its Insolvency (Inability to pay). Simple
That is sabotage to owe a lot of money without paying.Sort him out.
#30 shooter you are avoiding the Q but am sure you know why,
#33 Tawakwata mano i hope tawapashako abana. You think wealth comes from books? you will read the whole world and still die poor coz you cant use your brain.
#42 Thanks lets leave these guys to talk about things they dont know.
#47& 49 Digga bauze bangwele tabaishiba.
lol. why defend him when he himself doesnt give a rat’s buttock about it? he would have used his mid term gratuity if he wanted. but had other issues. the building was given away knowing very well the circumstances behind it. 1st to MMD, then to PF. he still drives, eats well and lives a lifestyle better than 99% of u bloggers. end of comments!!!! eish, you gossip more than hookers.
It would be helpful to know when this debt was due to be paid back .
Also i don’t understand why GBM trucking / milling have fought all the way to the supreme court when they knew that they had defaulted . Again , not knowing the full details of the agreement , it’s difficult to make any meaningful comment.
BAMUCHAYA YA MUMALA, When you borrow anything , you should remember to pay back. GBM did not pay back because he used to boast that he bought LPM s first suit. Now the guy in chargeis not LPM, this is RB. Mudala GBM, dobo uchefye, pantu naba anti drug balaisa.
You and Mpombo are in the same shit and Sata will not help you , he will just move the secretariat to another place . Maybe to Given Lubinda’s peacock.
thats bullshit..GBM has alot of money..that 2 billion is nothing to him..am sure he doesnt mind them taking the building..he proberbly doesnt even it..
No. 47 Digga, please read carefully. GBM Trucking AND GBM Milling are the ones who borrowed the money and put up that building as collateral. If the directors of the said companies can be so negligent as to fail to repay a loan, can you trust them with handling the nation’s purse strings. And if they have so much money as you allege, why did they fight all the way to the Supreme Court to avoid paying their debt? Methinks you’re just a paid praise singer for GBM but unfortunately, we can’t buy your bull”@&t.
i still insist, think about this band wagon of people who have lost their jobs and their dependants survival,where is the government going to take them-what progress does it make,at the same time job are being created on the other side jobs are being lost,this must even sadden our dear president
People stop talking falsely here GBM Is NOT A REAL BUSINESSPERSON hes just like any other struggler based on Overdrafts
Stop talking falsely here u
making that ka “changanya business” look as if its a big thing.
we know GBM Is NOT A REAL BUSINESSPERSON he thrieves on Overdrafts
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