How M’membe, Nchito looted Post, airline

Fri, 05 May 2017 10:11:43 +0000

 By NATION REPORTER

 EMBATLED former Post Newspaper proprietor Fred M’membe and his partner Mutembo Nchito SC offered themselves high paying jobs at each other’s company where they were both directors.

Information emerging reveals that a contract of employment signed by Mr M’membe  offered  his friend, Mutembo Nchito SC employment as Chief Executive Officer for the now defunct Zambian Airways on 11th December, 2006 at a whooping US $20,000 monthly salary among other hefty allowances.

And Mr Nchito as company secretary for the Post Newspaper designed the work contract for Mr M’membe as CEO and managing director with a net monthly pay of  US $100,000 almost K1 billion salary.

The two have a long history of friendship as manifested in the two legal work contracts signed, sealed and delivered to each other.

Mr M’membe in his contract was entitled to fire himself should he be dishonest or be caught up in any misconduct as CEO and managing director of the Post Newspaper. “If managing director shall be guilty of dishonesty or misconduct or for committing any act which in the opinion of the Board brings the company into disrepute whether such dishonest , misconduct of act is directly related to the affairs of the Post or not.

In the contract, his sister Likezo Kayongo signed as Post Newspaper board member to be witness for her brother, Mr M’membe.

Among other emoluments in his contract included five percent net profit for each year completed including holiday allowance of US $10,000 as well as 35 percent gratuity paid to him.

The Post was placed under liquidation following its failure to settle over K300, million debts from various banks in unpaid loans, workers salary arrears and huge backlog of unpaid taxes to the Zambia Revenue Authority (ZRA) among others.

Mr M’membe continued to pay himself hefty salaries for the last six years of the Post operations while the company waded in neck deep in debts from all sectors.

Meanwhile, Zambian Airways suspended its operations in 2009 under huge debts while the CEO Mr Mutembo Nchito was on a US $20,000 monthly salary with hefty allowances despite the obvious financial constraints the company was experiencing.

“A performance bonus of up to US $100,000 could be earned subject to agreed performance goals being achieved.

“The Company will in lieu of pension pay you 25% of your gross earnings on every anniversary of your contract. The Company will pay full educational expenses for all your children including tertiary education,” the contract said.

Both contracts provided for landscape services, domestic help and all household bills to be settled by the respective companies, including transport, medical and insurance services to be provided for.