Zambian Airways shares scandal exposed

THE original owners of the defunct Zambian Airways were paid a miserable $1 for the share transfer in a highly contentious transaction that saw them lose the company to the people who managed to run it down through unstainable borrowing.

The transaction, which Patriotic Front (PF) deputy secretary general Mumbi Phiri described as fraudulent, left many of the shareholders heartbroken and virtually destitute.

According to documentation availed to the Daily Nation, one of the shareholders, Mr Patrick Phiri, husband to Mrs. Mumbi Phiri, had 3,431,372 shares as at July 13 1999 at a capital of K50,000,000 out of which he was paid a miserable US$1 after the airline was fully taken over.

The other shareholders in Roan Air were a Mr S M Chatupa, Mr EM Chimfwembe, Mr BM Mulangala, Mr W B Ngandu and Mr S D Simwanza who in the shareholding agreement were called the MBO Team while the two Nchito brothers were shareholders collectively.

The MBO Team was allocated 70 shares after they bought off Roan Air from Zambia Consolidated Copper Mines Limited at a price of US$3,000,000 for which US$2,500,000 was paid through a cheque drawn on Barclays Bank, Wall Street, New York.

Mr Mutembo Nchito and his brother Nchima only had 15 percent shares collectively while the employee trust was holding in trust 15 percent shares for all employees.

She has described as vindictive the people who had for years demonized and destroyed the lives of many citizens without any sense of remorse.

Her husband, she explained, like other shareholders, was made to give up his 3, 431,372 shares in the company, putting the family and others in serious jeopardy.

Mrs Phiri said she had become a target of slander and malicious propaganda because she had exposed the fraudulent transfer of her husband’s shares in the defunct Zambian Airways.

She has however vowed that she would fight the duo to the bitterest end because she had built her life for her children and would not allow anybody to maliciously scandalize and defame her character and political career.

“The Post Newspaper has targeted me because of what I know happened at Zambian Airways. My husband was a major shareholder having bought 3,431,372 shares but he was miserably made to give away the shares at a mocking price of US$1. My Husband’s shares were fraudulently transferred,” Mrs Mumbi said.

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