. M’ MEMBE

By PERPETUAL SICHIKWENKWE –

THE Development Bank of Zambia (DBZ) has appealed against the High Court’s decision to refuse to join Post Newspaper editor-in-chief, Fred M’membe, lawyer Nchima Nchito and two others in a case to recover K14 million.
DBZ filed a lawsuit against JCN Holdings, Post Newspapers and suspended Director of Public Prosecutions (DPP) Mutembo Nchito over the alleged failure to pay back a K14 million loan.
The bank raised preliminary issues before Judge Justin Chashi, seeking an order to have Mines Air Services, Zambian Airways Limited, M’membe and Mr Nchito added as respondents to the proceedings.
DBZ also wanted the court to issue an order removing from the record witness statements of Richard Phiri, James Kapesa and the due diligence report appearing in the defendants’ bundle of documents filed in November 2010.
Mr Justice Chashi in his ruling last month, however, dismissed the application on grounds that M’membe and Mr Nchito could not be joined as they were not party and privy to the syndicated loan agreement.
He said the intended defendants could not be joined to the proceedings because the cause of action was statute barred.
The DBZ decided to appeal to the Supreme Court against the ruling of Mr Justice Chashi because it was dissatisfied with the decision.
It argued in a memorandum of appeal that Mr Justice Chashi misdirected himself in law and in fact when he held that the four could not be added to the action on grounds that the bank did not put up a strong and convincing case as to why it wanted them to be joined to the matter.
The DBZ submitted that the court below erred when it refused to remove the witness statements of Mr Phiri and Mr Kapesa on the basis of their contracts of employment with it.
It contended that Mr Justice Chashi also erred when he refused to remove the due diligence report from the defendants’ bundle of documents.