M’membe in $100,000 salary shocker

Mon, 24 Apr 2017 10:00:32 +0000

By Nation Reporter

A HEFTY US$100,000 a month or K1Billion a month (old currency) is the salary embattled former Post Newspaper managing director Fred M’membe paid to himself whereas some of the lowest paid employees earned just under K1,000 per month and taxes remained unpaid.

Apart from the salary,  M’membe was also entitled to

US$10,000 annual holiday allowance

35 percent gratuity per year

5 percent net profits

Fully furnished accommodation

Education allowance for all his children

Domestic servants and home security paid for by the Post Newspaper

This was an improvement on his 2011 contract co-signed by Mutembo Nchito, where he was earning a bounty US $62,000. Ironically, Mr M’membe also co-signed the employment contract of Mutembo Nchito as chief executive officer of the now defunct Zambian Airways Corporation where he (Nchito) earned US $20,000 as monthly salary.

According to some disgruntled former employees of the Post Newspaper (in liquidation) who have now called on the Government to expedite liquidation, these hefty salaries were paid in spite of the cash squeeze the company was facing in which many employees went for months without salaries.

In addition, even statutory obligations such as pay as you earn (PAYE) were also not being paid.

“The Posts newspaper (in liquidation) owes up to K350 million in unpaid taxes to Zambia Revenue Authority (ZRA), millions in unserviced bank loans and salary arrears,” a source has revealed.

Both work contracts were developed by Nchito and Nchito Advocates in their capacity as Post Newspaper legal secretary which gave Mr M’membe a huge salary and allowances despite the financial difficulties purportedly was being experienced by the company and affecting its operations.

All this hefty personal expenditure was amid alleged financial constraints the company was facing resulting in the failure to service loans obtained from Investrust Bank, Development Bank of Zambia (DBZ) and K53 million owed to the Zambia Revenue Authority (ZRA) in unpaid taxes.

Each contract was for a three year period which required approval by the Company Board consisting of among others Mr M’membe’s sister and deputy Post managing director Likezo Kayongo.

Mr Nchito and Ms Kayongo both witnessed the huge financial remunerations for Mr M’membe.