The K18 billion DBZ debt which President Sata has failed to clear may lead to him being dribbled out of the 2016 presidential bid.
A senior PF official told the Daily Nation that the Chikopa tribual was supposed to gravely undermining the judgment and punish the judges responsible and thereby to cause a write off the debt in return for the support of a named official’s 2016 presidential candidature. This was why colossal expenses were being incurred on the tribunal. Failure by the tribunal to clear the debt has seen the alternative candidate being supported for presidency so that he can clear the debt from State House in 2016 or even before.
“This is why they are upset by endorsements because they have their own candidate despite President Sata having a constitutional mandate to stand for two terms.”
Meanwhile, the Zambian Law Reports Editorial Committee has selected Judge Nigel Mutuna’s judgment against Zambian Airways owned by Mutembo Nchito, Fred M’membe and Nchima Nchito for inclusion in the 2012 report.
Entry into law reports represents outstanding judgments with clear and proper statement of the law, accurate, brief, and clear summary of the facts of the case as well as uniqueness of the point of law decided and precedential value of the judgment .
Judge Nigel Mutuna found that the three directors were culpable to pay back the K18 billion owed to Development Bank of Zambia (DBZ).
In particular, Judge Mutuna found that Mutembo Nchito who is now Director of Public Prosecutions (DPP) was amenable to prosecution for a criminal offence under section 357 of the Companies Act.
Defence Minister Godfrey Mwamba said M’membe supported President Sata in 2011 for ulterior motives adding that the Post editor in-chief should not think that Zambians were foolish and easy to manipulate because M’membe’s scheme against President Sata’s presidency was well known before he became president of Zambia.
He said that it was a well known fact that M’membe was supporting and hero-worshipping President Sata because of the loan burden he has.
The section states that “If an officer of a company who is knowingly a part to the contracting of a debt by the company has, at the time the debt is contracted, no reasonable or probable ground of expectation (after taking into consideration the other liabilities of the company at the time) of the company’s being able to pay the debt, the officer shall be guilty of an offence, and shall be liable on conviction of a fine not exceeding two hundred and fifty monetary units or to imprisonment for a period not exceeding three months or both.
The facts of the case in particular the financial state of Zambian Airways demonstrated severe financial hardship and indebtedness but Mutembo despite knowing this, went ahead and committed the company to further debt.
According to submission of the 2012 Judgments for Zambia Law Report, Judgment in the case were based on clear and proper statement of the law.