Embattled M’membe in deep waters

Fri, 12 Jan 2018 09:27:57 +0000

By CHINTU MALAMBO

FRED M’membe’s Post Newspapers has finally shut down after being liquidated by the Lusaka High Court in a judgement passed yesterday that found liabilities totalling $17million (K171, 672,492.11) that were far greater than its assets amounting to $1million or (K11, 437, 880.90).

High Court Judge Sunday Nkonde entered a consent judgement where he declared the paper insolvent and wound up following its liabilities that far outstripped its assets.

Judge Nkonde said the Post Newspaper was unable to pay its debts and could not be rehabilited or rescued in any way.

“The Post having its liabilities exceeding its assets and having been unable to pay its debts as they fall due with no reasonable prospects of being rescued or rehabilitated whatsoever and however is declared insolvent and wound up,” the judgment read.

He also said there were no reasonable grounds shown to oppose the winding up petition.

Judge Nkonde also declared that provisional liquidator, Lewis Mosho, shall exercise the powers to liquidate the company including dissolution of the company pursuant to the Companies Act Chapter 388 of the laws of Zambia.

“That the provisional liquidator Lewis Mosho of Lusaka be and is hereby confirmed as the liquidators handling dissolution of the respondent pursuant to the Companies Act chapter 388 of the laws of Zambia,” Justice Nkonde said.

Judge Nkonde contended that noncurrent assets available for distribution were land and the building valued at K11, 437,880.90

This is in a case in which five former Post Newspaper employees – Andrew Herbert Chiwenda, Roy Haabalu, Bonaventure Bwalya, Mwendalubi Mweene and Abel Mboozi –  applied to the court to have the company placed on liquidation in order to recover their terminal benefits.

Chiwende is owed K141, 930.0, Mboozi K40, 000.0, Mweene K30, 000.00, Bwalya K40, 000. 00 and Habaalu K40, 000.00 all excluding interest.

The effect of the judgement is that the Liquidator will now sell the few available assets and pay off creditors starting with secured creditors, employees and Zambia Revenue Authority-ZRA- and thereafter dissolve.

The newspaper was shut down by ZRA for failing to remit millions of US dollars in back taxes on June 21 2016.