Nchito’s U$4.2 m loan in court-BOZ


THE Bank of Zambia says the US$4.2 million loan by Fred M’membe and Mutembo Nchito is still in the courts of law contrary to the consent order signed with Finance Bank Zambia Limited that the matter should be settled out of court.

This is according to Bank of Zambia head of public relations Kanguya Mayondi’s response to the Daily Nation query.

The Daily Nation had sought an explanation from the Central Bank on whether Finance Bank’s U$4.2 million loan advanced to Fred M’membe and Mutembo Nchito was within the banking and financial regulations.

The newspaper also wanted to know whether the bank was aware of the consent agreement the parties to the loan entered into to settle the matter outside court and whether the loan had been repaid.

“The Bank of Zambia wishes to state that it is unable to discuss the affairs of one individual institution when it is the regulatory entity of an entire sector which comprises 19 registered and operating commercial banks, as well as numerous non-bank financial institutions in the Republic of Zambia, and as such cannot make any comments.

“Further, please note that the matter in question is before the courts of law and this makes it not possible for the Bank of Zambia to comment,” Mr. Mayondi said.

Mystery has deepened over the consent order which Mutembo Nchito and Fred M’membe signed with Finance Bank for the settlement of US$ 4.2 million debt they owed the bank.

A search at the Lusaka High Court could not locate the terms under which the consent order was signed.

The order authorised by High Court Judge Nigel Mutuna on November 28, 2012, indicated that there were terms guiding the decision by which the bank withdrew the matter from court.

“The parties having agreed terms of settlement and consenting to an order being drawn up in such terms as hereinafter provided; by consent, it is ordered that this matter be discontinued,” reads the consent order.

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