Tue, 13 Dec 2016 14:22:43 +0000
By Chikumbi Katebe
THE Lusaka High Court is today set to commence hearing of an application for contempt proceedings against Fred M’membe and the Nchito brothers for refusing to obey a court order over the liquidation order of the Post Newspapers.
This is in a matter in which Post Newspapers liquidator, Lewis Mosho of Lewis Nathan Advocates, has sued the trio together with company general manager Rowena Zulu for refusing to avail a list of assets to him as provisional liquidator.
Mr Mosho filed for contempt proceedings against Mr M’membe and his lawyers, Nchito and Nchito Advocates and Ms Zulu, for allegedly deliberately refusing to hand over a catalogue of assets as demanded by the liquidator following his
appointment.
Mr Justice Sunday Nkonde yesterday adjourned the matter because the parties were only served with the affidavit in the morning, and so requested for time to study the response from Mr M’membe.
In his affidavit, Mr M’membe argues that only the receiver has the authority to demand to take possession of the Post Newspaper in liquidation assets and not the provisional liquidator.
Mr M’membe, as shareholder of the defunct Post Newspapers Limited, has declined to surrender a list of assets to the liquidator appointed by the High Court to wind up operations of the newspaper company following a legal suit raised by five employees over unpaid salaries and other emoluments.
“…I am advised by counsel and verily believe that it is the receiver and not the provisional liquidator who has the right to take possession of the respondent’s assets.
‘‘I have become aware, as this court’s record will show, that a receiver was appointed over all of the respondent’s assets on 3rd November, 2016,” he said.
Mr M’membe however declared that he was not in control of the Post Newspaper’s assets or records as demanded by the provisional liquidator.
Mr Mosho had earlier appointed Pallan and George, to act as legal representatives for the Post in Liquidation after he fired the Nchito brothers, Mutembo and Nchima, who have been the lawyers for the newspaper company.
The liquidator requested a list of all company assets including financial reports to assist him in discharging his duty as company liquidator in winding up of the company operations, but that Mr M’membe and his lawyers have continually defied the court order to recognise him as the appointed legal authority over the company.
The Post Newspapers in liquidation owes K800 million to various institutions including banks and the Zambia Revenue Authority (ZRA) in excess of K97,000 in unpaid taxes dating as far back as 2009.
The newspaper has failed to owner various bank loans, including one from Investrust Bank with a debt of over US $3million, and the Development Bank of Zambia (DBZ) with a K14 million unpaid loan.
Five former Post employees are claiming about K875,000 in unpaid emoluments since July 2016 when ZRA moved to take over company assets including trucks, office administrative premises and the printing plant in a bid to recover their dues.
Currently, the Post Newspaper debt stands at a staggering K105 million.
