DBZ sues Chita Lodge for K97m debt

AFTER being cited in the Auditor General’s report for non-recovery of loans, Development Bank of Zambia (DBZ) has sued Chita Lodge Limited demanding payment of almost K100 million debt and an order to possess two of the borrowers’ mortgaged facilities in Lusaka and Samfya.
The latest Auditor General’s report indicates that DBZ has had challenges to recover monies disbursed to various companies, leading to the suspension of its lending operations in 2018 due to lack of capacity.
Last month, the bank’s managing director, Samuel Bwalya, told the Parliamentary Committee on Parastatal Bodies that as of 2019, the financial institution disbursed almost K1.5 billion worth of loans, but only about 10 percent were paid back with interest, while 90 percent of the borrowers were not able to service their accounts.
Among companies that had not honoured their obligations was Chita Lodge Limited, eight years after getting the loan.
The Auditor General’s report indicates that on April 17, 2013, DBZ entered into a financing agreement for the sum of K18 million with Chita Lodge Limited.
The money was for the building of a resort, buying of CLICK TO READ MORE

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