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Mahtani Sues Mutembo Nchito FOR US$4.2 m
FINANCE Bank Zambia Limited has sued Mutembo Nchito and other five for fraudulent misrepresentation in the Lusaka High Court. According to the writ of Summons obtained by the Zambianstar, Finance Bank Zambia Limited has sued Kieran Day receiver of Mines Air Services Limited (the now defunct Zambian Airways) as First Defendant, JCN Holdings Limited second defendant while the Post Newspapers third defendants.
Mutembo and Nchima Nchito have been sued as fourth and Fifth
defendants respectively while Fred Mmembe has been sued as sixth defendant for fraudulent misrepresentation.
Finance Bank is owned by Rajan Mahtani. Finance Bank retained Messers SBN Legal Practitioners a legal firm owned by State Counsel Sunday Nkonde to handle the case, however, the legal firm has returned all the documentation on the matter as they have been finding it difficult to proceed with the case. However, the matter has taken a snag as Lawyers representing Finance Bank have found it difficult to proceed with the matter in the Lusaka High Court.
Sources close to Lawyers handling the matter told Zambianstar that Finance Bank proprietor Rajani Mahtani was not willing to give fresh instructions on whether the matter should proceed or not. “This case is being handled by State Counsel Sunday Nkonde and we know that he is finding some difficulties in proceeding with the matter because he has not received fresh instructions from Mr. Mahtani. This matter of fraudulent misrepresentation is still active in the High Courts,” said the source.
According to the writ of summon Finance Bank is demanding for the total sum of US$ 4, 208 938 being outstanding obligations due to the plaintiff from the overdraft facility on the Escrow fuel account and main overdraft account extended to the Borrower.
“The plaintiff’s claims is for recovery from the 1st defendant of US$4 208 938. 28 being outstanding obligations due to the plaintiff from the overdraft facility on the Escrow fuel account and main overdraft account extended to the Borrower by the plaintiff and from the 2nd and 3rd defendants jointly and severally being monies due to the plaintiff defendants as a result of the respective letters of guarantee for unlimited amount dated 17th October 2008 on outstanding obligations of the borrower to the plaintiff on the Escrow fuel and main overdraft account,” stated the summons.
The bank is also among other things demanding for interest for the period and any other costs as the courts may deem fit. The bank has also sued Mutembo Nchito and Nchima Nchito for fraudulent misrepresentation and is demanding for interest. Finance Bank has also sued Mutembo, Nchima and Fred Mmembe for fraudulent trading in terms of section 383 of the Companies Act, Cap 388 of the Laws of Zambia.
Mutembo, Nchima and Mmembe has also been sued for misrepresentation in terms of section 3 (1) of the Misrepresentation Act, Cap 69 of the
Laws of Zambia and Finance Bank is demanding for interest on the damages caused as the court deem fit.
And according to a statement of claim filled at the Lusaka High Court Mutembo, Nchima and Mmembe were at the material time directors of the defunct Zambian Airways as well as JCN Holdings Limited whilst Mmembe Director of the Post Newspapers.
Mutembo, Nchima and Mmembe got an overdraft facility amounting to US$1.5m with the collateral or security to be held by the Finance Bank
which was equity funds from the Post Newspapers amounting to US$1.1 m.
The statement states that in a letter Mmembe (Post) wrote on 13 November 2007, they (Board of Directors) sought to make changes to the
application for the US$1.5m multipurpose working capital facility.
Posted by
DÖNCHI KUBEBA BACKFIRES
April 18, 2012 at 10:46 am
PAY BACK TIME! Will nchito resign?
Witty
April 18, 2012 at 11:24 am
Lelo,lelo…yes Mahtani be ruthless with all those crossing your path.They think that by giving you your Bank back then they shouldn’t pay what they owe you.
Zeb Mpinganjira
April 18, 2012 at 11:26 am
This is a pure business case which does not have anything to do with the position of the DPP but him as a private person before he became DPP!!!1
Nana
April 18, 2012 at 12:37 pm
I pray that Mahtani wins the case, they really troubled him. Its rare to find such hardworking men like him. The MMD were jeolous of Mahtani. They will see for pressing buttons on the child of God.
Mpangula Mputyu
April 18, 2012 at 1:15 pm
U cannot separate Mtembo Nchito, this case and him being DPP. Those saying so or saying the case happened in his private capacity. Well It is similar to saying a pastor/priest can defile a young girl as an individual and not as a pastor. How do u separate the two. Mtembo in my view was nOt YET fit to be DPP. Until all the cases he had were concluded and he was to be found NOT Guilty.That was the time to appoint him. Thereare several eminent Zambians that could have assumed the role of DPP. Zambia is NOT short of them.
Finance Bank First Lady
April 18, 2012 at 1:23 pm
Mupokeni ichikulwa ichi mwenye uyu!Teku india kuno camaaan!
mpingu
April 18, 2012 at 1:30 pm
iwe mpangula learn to reson coherently he committed the before becoming DPP ala uletekanya
Mpangula Mputyu
April 18, 2012 at 1:52 pm
ba Mpingu I undersatnd your comment. But the position of DPP is sensitive and a huge position. Some one having such big pending cases and in the courts of law cannot be appointed to that position YET.The charges he is facing are criminal in nature. There are more Zambians that deserve to be appointed for NOW Mutembo should NOT have been appointed until they are cleared. We all know the cases Mutembo was sighted for and the cases surrounding Zambian Airways. It was a rush to appoint him DPP. How can he prosecute himself as DPP????? Remember Mathani funded us (PF) and we are not ahsmed of this and Mutembo is in the boat as well. So do not dismiss this case, it is coming from our own internal Party members in the PF by virtue that it is our members not someone else from other paerties.
Bacholar
April 18, 2012 at 1:55 pm
Pay him bak its his money
Bigge
April 18, 2012 at 2:24 pm
oh oh
tumfweko ubukopo
April 18, 2012 at 2:25 pm
But the same zambians castigated UPND when they voted against Mutembo Nchito in parliarment. The agument for UPND was that Mutembo had cases to clear and therefore he could not be given the office pf DPP..But zambians were saying HH was bitter…so he is right now,
milimo
April 18, 2012 at 2:58 pm
You people stop showing your dullness here. Finance bank took Nchito to court under FNB management in the RB regime.
This is an old case and Mathani is not interested in this shit that is why he is reluctant to give fresh instruction.
Why do people hate Nchito kanshi?
HON NTANKULA - 2016
April 18, 2012 at 3:24 pm
Mpangula mputyu
Wandepule mbafu ati a pastor can defile a young
girl not as a priest but as an individual. It is
true whether he had a bible when comitting the
sin or not he will still a priest.
Yolinda Nduu
April 18, 2012 at 3:39 pm
On moral ground, Nchito should go on Leave of absence. UPND was right
kalu
April 18, 2012 at 4:18 pm
Is it Matani who sued or it was Finance Bank when it was under “RB”.Who borrowed the money,is it Meembe and Nchitos or Zambian airways or their other companies?You can never clean yourself by smearing feaces on others.
chinsali boy
April 18, 2012 at 4:33 pm
when?
kekeke
April 18, 2012 at 9:11 pm
Penny lover…when the shit hits da fan…
Mwenye power
Guest
April 18, 2012 at 9:34 pm
milimo mutembo was never taken to court over this matter so the matter was still pending and Finance Bank needs its money back you cant just be borrowing and pay back that is why the bank was sinking because of such borrowings. Its time to pay back no matter who you are!
Pulamasaka
April 19, 2012 at 8:21 am
let them pay back what they stole for you sir..!viva justice..never be cowed..
mike
April 19, 2012 at 8:52 am
There no further instructions to proceed,meaning Mahtain has no interest now.
Bana Mpundu
April 19, 2012 at 9:06 am
Yakaba ilyashi ili!
Pimpslim
April 19, 2012 at 12:54 pm
Save us the crap Matahani or Nchito whatever ur names are, go kill eachother in the dark, thats why MMD grabbed the bank from you , you make secretive deals and when you quarel u suddenly blow things outta proportion , we wea not there wen u wea doin the deal,
WTF even gave this ***** back the bank ?