Nchito’s $4.2m consent order mystery deepens


MYSTERY has deepened over the consent order which Mutembo Nchito, 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.

The parties to the consent order were Finance Bank as the plaintiff while the defendants were Keiran Day, Mine Air Services T/A Zambian Airways, JNC Holdings, Post Newspaper, Mutembo Nchito, Nchima Nchito and Fred M’membe.

What exist, however, are documents pertaining to Finance Bank claiming its loan from Zambian Airways.

Meanwhile, the Daily Nation has sent a press query to the Bank of Zambia to establish whether the loan Zambian Airways took from Finance Bank was in line with the Banking and Finance regulations.

Civil rights activist Brebner Changala has criticised the consent order because it came soon after Mutembo Nchito as Director of Public Prosecutions entered a nolle prosequi in favour of Finance Bank chairman Rajan Mahtani who was facing forgery charges.

Dr Mahtani and his lawyer John Sangwa were accused of forging the signature of the then Bank of Zambia deputy governor and now Central Bank Governor Denny Kalyalya.

In March 2013, Mr Nchito entered the nolle prosequi in favour of Dr Mahtani and Mr Sangwa.

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