11 December 2012

Zambia: MMD Owes BOZ K4 Billion

THE MMD's existence has drifted into a precarious position with the Bank of Zambia (BoZ) joining the list of creditors, demanding more than K4 billion.

The central bank has on numerous occasions written to the former ruling party demanding settlement of K4, 044,049,420.

This is according to a letter obtained by the Times of Zambia dated October 18, 2011, from BoZ assistant director - regulatory policy and liquidation Norbert Mumba and addressed to MMD national secretary.

"We write to demand settlement of an outstanding debt owed by your party amounting to K4 billion. The breakdown is as follows, Meridien BIAO Bank Zambia Limited K 2,801,150,684.93, Moped Investment Limited debt K 798,348,493.15, Commerce Bank Zambia Limited K444, 550,242.37," the letter read in part.

The letter was copied to the Deputy Governor - Operations, director bank supervision, liquidation coordinator-Meridien BIAO Bank Zambia Limited and liquidation coordinator-Commerce Bank Zambia Limited.

The letter further stated that the MMD needed to make a prompt settlement of the debts.

"You are no doubt aware that the Bank of Zambia and the former liquidation managers have on several occasions written and contacted your party seeking settlement of the debt but to no avail," official correspondence between the BoZ and MMD further read.

But MMD vice-president in charge of politics Michael Kaingu charged that the Government wanted to ensure that the former ruling party was "wiped out."

It was not clear whether the MMD would settle the more than K4 billion debt as it had struggled to settle about K400 million to the Registrar of Societies.

Last week, the National Pensions Scheme Authority (NAPSA) filed a law suit demanding the payment of more than K90 million for failure to refurbish its former headquarters at the NAPSA Lusaka House.

The party had since been given a seven-day ultimatum in which to settle the outstanding amount.

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