Bank grabs Costain Chilala’s farms, Lungu to give him loan

Bank grabs Costain Chilala’s farms, Lungu to give him loan

Stanbic Bank has foreclosed (grabbed) farms of former rich man Costain Chilala and put them on sale to recover the money he borrowed but failed to pay.

The farms have been put on sale by Knight Frank and the Zambian Watchdog understands that some of the properties have a lready been sold.

And the Watchdog has been reliably informed that Chilala’s application for further loans from almost all local commercial banks have been rejected due to his failure to service existing loans. Chilala has tried to attract investment from abroad to his farms but failed after potential investors checked his books.

Meanwhile yesterday (4 June 2018) Chilala agreed to be paraded at a PF rally after it was arranged that president Edgar Lungu will order the Development Bank of Zambia to give Chilala a loan even though the bank has rejected his application before due to his bad record and incapacity to repay.

What this means is that the Development Bank of Zambia will be pouring public money into a drainage as the money it will give him will be used to pay off existing loans. And it is criminal for Lungu to interfere in the work of the Development Bank of Zambia, decisions to give loans should be made by bank experts not politicians.

The Watchdog will be monitoring DBZ from today. And the Watchdog will soon give a detailed report on how Chilala blew up his fortunes.

See the adverts on Chimsoro farms by Knight Frank

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COMMENTS

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    Muzamba Sibajene 2 weeks ago

    Something is not right here at all and it doesn’t add up. Mr Chilala was very successful for many many years so he must have been somehow tricked into getting loans that would be practically impossible to pay back. I hope he does not get discouraged by this. One thing we Zambians are great at is laughing at people who have been successful and no longer are. It is time we gave up the crab mentality and learned from one another instead. Mr Chilala was an employer of hundreds of families who may now fall into poverty because he can’t support them. This is a sad situation and I’m praying that he finds a way out of it before it is too late. He is concerned and will do anything to help the people he feels responsible for including having his name dragged in the mud and paraded by the president. How many of you reading this have his level of responsibility? How many of you would walk away and just say “I guess that’s life?” How many of you would do what he is trying to do to save as much as he can so that children can continue to go to school and have a better shot at life? He literally has enough to leave it all and start afresh somewhere with his immediate family and be perfectly fine but he is fighting for many and the very least we can do is wish him well! God Bless you for who you are and what you are doing and may a permanent door which no one can close be opened to you. May you like Job have ten times what you had before and may you always remember that  ‘This too shall pass’.

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    FuManchu 2 weeks ago

    Wow! “Sebana wikute” so goes the saying thus the parading of the once “mighty” Chilala brings to the fore what has led to it! Careless borrowing is enslaving!

  • comment-avatar
    Fed-up 2 weeks ago

    Fact is at current PF interest rates, it’s just about impossible for arable farming to be viable. Chilala is perhaps Zambia’s biggest arable farmer. If he cannot succeed, then who can? Even Zimbabwean farmers are packing their bags to return to Zimbabwe. The difficulties our farmers find themselves in will not make ministry of agriculture officials lose their sleep.