M’MEMBE, NAWAKWI AND OTHERS FINGERED IN THE INSOLVENCY SCANDALS: THEY GOT HEFTY LOANS BUT HAVE FAILED TO PAY BACK
By CIC Investigations.
M’MEMBE, NAWAKWI AND OTHERS FINGERED IN THE INSOLVENCY SCANDALS: THEY GOT HEFTY LOANS BUT HAVE FAILED TO PAY BACK.
…M’membe used his Newspaper as collateral and Nawakwi used Legana sausage. We demand that all those who got loans from these collapsing banks be named…
..Allegations of Unpaid Loans by Prominent Opposition Politicians: Fred M’membe and Edith Nawakwi..
The Financial Scandal
A number of politicians from Zambia’s former Patriotic Front (PF) regime, along with their allies, have been implicated in a scandal involving substantial unpaid loans. These loans were obtained from the now-defunct Development Bank of Zambia (DBZ) and Investrust Bank, which recently closed due to financial insolvency.
The Nature of the Loans
Reports reveal that these individuals secured large loans through a system of patronage, subsequently neglecting their repayment obligations. This failure to repay has been highlighted as a contributing factor to the financial difficulties faced by the lending institutions. Prominent Figures Named:
Fred Mmembe’s Financial Ventures
Fred Mmembe, former owner of the Post Newspaper and now leader of the Socialist Party, is among those named. Mmembe reportedly secured a $350,000 loan from Investrust Bank, using the newspaper’s assets as collateral, to fund the Zambian Airways project, which eventually failed. Additionally, he obtained $240,000 from DBZ for his courier service business, which also floundered without repaying the loans. Mmembe’s ventures were further criticized for evading taxes and failing to make statutory contributions.
Edith Nawakwi’s Business and Political Ambitions
Edith Nawakwi, another noted figure, borrowed $150,000 from DBZ for her Legana Sausage business, later taking an additional $50,000 purportedly for business expansion. However, these funds were reportedly diverted into her unsuccessful political activities, including a nationwide initiative to support women in the poultry business.
Other Politicians Involved
Several other politicians, including former finance ministers Bwalya Ng’andu and Margaret Mwanakatwe, were mentioned for obtaining loans from these institutions, contributing to their financial strain.
Legal and Political Repercussions
Dr. Samuel Bwalya, former DBZ managing director, has been sentenced to 15 months in prison for abuse of office, highlighting the legal consequences of the misuse of funds. However, there’s a growing call for greater accountability for all involved, especially the politicians who remain free despite their significant debts.
Our Call for Transparency
There’s a pressing public demand for the publication of all names of those who have heavily borrowed and defaulted from these collapsed Financial Institutions, shedding light on the extent of financial mismanagement and its impact on Zambia’s economy.