Solicitor-General Mwenye pressures DBZ to write off K14b Zambian Airways loan

Solicitor-General Mwenye pressures DBZ to write off K14b Zambian Airways loan

Solicitor-General Musa Mwenye is pushing the Development Bank of Zambia (DBZ) to write off the K14 billion which DPP Mutembo Nchito and Fred Mm’embe owe the public bank.

Mwenye is also ordering DBZ to drop the same case from court.

Meanwhile, the Watchdog has been informed that the management board of DBZ has been quietly dissolved, meaning that currently there is no board to make policy decisions for the bank.

The decision to take Zambians airways to court was made by the board of directors led by. Namukulo Mukutu.

It is not clear who is making the decision to withdraw the case from court as reported in the Post newspaper.

Currently, DBZ also has no substantive Chief Executive Office after Managing Director Abraham Mwenda was moved to the ministry of finance as Permanent Secretary.

The Post Newspapers, DPP Nchito and his brother Nchima were shareholders in Mine Air Services Limited, which used to trade as Zambian Airways. Zambian airways borrowed K14 billion from DBZ which they have failed to pay back.

The Lusaka High Court last week ruled that the money should be paid back to DBZ but the Post newspaper claimed that matter was withdrawn from court.

But sources at DBZ say the matter was never withdrawn but that Solicitor-General Musa Mwenye is making frantic efforts to have the debt cancelled and matter withdrawn from court.

Sources say Mwenye, who appears to be acting on behalf of Attorney- General Mumba Malila is putting huge pressure on the acting managing director to write off the debt and withdraw the matter from court.

But workers at DBZ are complaining and wondering why the DBZ should treat this case in a special way when they have in the past reposed and sold houses and equipment belonging to peasant farmers who failed to pay back.

It is also said that some ministers in the PF government are not happy with the manoeuvres to have the public lose K14 billion to three individuals.

Sources say ministers are afraid to speak out as they know that the people involved have direct access to President Michael Sata and that he is aware of the matter so they cannot do anything as they fear to lose their jobs.

DBZ, whose objective is to provide medium and long term loans in the country, is 90 per cent owned by Government.

The remaining 10 per cent is held by bilateral and multi-lateral banking institutions which are defined as class B.

Share this post