Thu, 29 Nov 2012 16:22:35 +0000
Finance Bank (Z) Ltd, chaired by Dr. Rajan Mahtani, has discontinued its claim of $4 million against defunct Zambian Airways partly owned by Mutembo Nchito, Director of Public Prosecution, and Fred M’membe Managing Editor of Post Newspapers.
In May this year Mutembo Nchito entered as nolle Prosequi against Mahtani and his lawyer John Sangwa who were found with a case to answer of forgery, altering a force document and fabricating evidence.
A consent order signed between Simeza Sangwa and Associates on behalf of Finance Bank and Nchito &Nchito advocates on behalf of Zambian Airways states that the matter has been discontinued.
The consent was signed by Honourable Judge N.K. Mutuna who was presiding over the claim from Finance Bank. The Bank sued Zambians Airways and Mutembo Nchito in particular for fraudulent misrepresentation in the manner they obtained US$4million from the bank.
The Bank charged that the Airline, whose chief executive was Mutembo Nchito, obtained the money fully aware that it had no capacity to pay back, hence the charge of fraud.
Last weekLusakabusinessman Brebner Changala wrote to the Anti Corruption Commission and President Sata over the manner in which the DPP had entered a nolle Prosequi against Dr. Mahtani. He wanted the matter investigated as it appeared that there was abuse of authority.
Zambian Airways is presently in court over a K14billion Development Bank ofZambialoan which the Bank has demanded. The matter has resulted in the institution of a Tribunal against Judges who were reportedly against the airline.
The airline is in court for other debts including several billion owed to the National Airports Corporation. Meanwhile documentation concerning a further loan of about US1.7milliion owed to the National Pensions Authority has vanished.