Comrade M’membe; why can’t HH restructure debt like you tried over your Zambian Airways $1.6 million ‘debt’?- Austin Mbozi

Comrade M’membe; why can’t HH restructure debt like you tried over your Zambian Airways $1.6 million ‘debt’? 



By Austin Mbozi



Socialist Party president comrade Fred M’membe correctly says President Hakainde Hichilema (HH’s) debt restructuring means that he (HH) has transferred Zambia’s debt payment obligations to his successor (Zambian Observer 17 June 2024).

He also correctly predicts that this restructuring could make President HH popular with future historians/future generations. These will ‘sonta’ saying, ‘HH of Bweengwa built all these! But ‘bo’ M’membe who took over the presidency in 2031 built nothing’.

Fantastic! So, it worries comrade M’membe that these historians will forget that M’membe will be repaying debts which HH is now ‘refusing’ to repay? Well, I only differ with him when he says HH’s restructuring is crooked ‘imingalato’ where HH is a ‘schemer’ ‘hoodwinking’ Zambians. Is comrade M’membe admitting that he was ‘scheming’ ‘imingalato’ when he tried to ‘restructure’/ defer his Zambian Airways $1.6 million payment to the state-owned National Airports Corporation (NAC)?

I enjoy critiquing comrade M’membe. He has vast knowledge and intellectual insights which many PF thief thug/UKA ‘opposition’ don’t have. He does not fear being criticised, especially by me who by his standard I am just a small puppy barking at him, the elephant. My ‘tuma’ teeth can break if I try to bite him, while he majestically keeps chewing thorns and feeling no pain.

But he needs close scrutiny. As he has done in the past, he is still going to influence discourse in this country; sometimes for public good. My general problem with him is that he selectively applies the knowledge that suits his agenda at any particular time. He can apply it differently any time.   

First, comrade Mmembe himself tried to restructure the Zambia Airways ‘debt’. M’membe owned The Post newspaper, which in turn owned 30 per cent shares in Zambian Airways, making him a director. When, example, you wanted to fly ‘his’ Zambian Airways, its ticket will include, say, a $50 for ‘his’ Zambian Airways company and a $5 ‘departure fee’. This $5 is the fee which government, through NAC, charges you for using its airport, as ‘air passage service charge’.  Zambian Airways was supposed to give this $5 to NAC.  

But ‘M’membe’s’ Zambian Airways was not timely remitting to NAC, accumulating  $1.6 million ‘debt’. By 2007, the then transport minister Dora Siliya was demanding this money. But comrade M’membe and his fellow shareholders went to ask the then finance minister Ng’andu Magande if he could favour them by deferring this payment. They wanted to ‘restructure’ this ‘debt’ so that they don’t ‘repay’ it ‘now’, but after three years. Magande had granted the permission but Dora  Siliya refused to allow the deferrement. President Levy Mwanawasa was too ill to intervene. Result? Rupiah Banda campaigned with Dora Siliya against M’membe, and won the presidential election to replace Mwanawasa. In his book, ‘The depth of my footprints, (2018) Magande complained that the likes of Cathreen Namugala de-campained his attempts at the presidency, saying he was supporting ‘crooked’ M’membe group.

Now, if comrade M’membe replies that ‘I was not using mingalato on Zambian Airways because ‘I wanted space to rebuild my repayment capacity’, then the same applies to President HH. In fact, I am only being very fair to comrade M’membe by referring to the $1.6 million as ‘debt’ when it was money used without the owner’s permission. Supposing I tell you that I am going to Chawama to collect K500 ‘cashing’ from my shop. You ask me to pass through Mr Edgar Lulu who borrowed from you a K50 to buy Jameson ‘kachasu’ alcohol.  I collect my K500 and your K50. But in my way back I drink the entire K550 at Mike’s Car Wash. Can you accept it when I tell you that, ‘mwana’ I owe you K50 so give me three years to repay you? No! I may not be arrested for ‘obtaining money by false pretences ’. But this is certainly a civil offence. I should have first given you your K50 and then come to try to borrow, not to ‘lend’ it to myself and ask you to regularise it as a ‘borrowing’. This is like raping someone and then ask her father (Magande) to allow you to pay after three years for his daughter’s ‘short time’ service you enjoyed.  Comrade M’membe ought to be fair to HH. President Rupiah Banda tried to arrest M’membe  over other issues related to Zambian Airways, HH supported M’membe, saying these are just civil case  ‘failed business’ deals’.  

Second, President HH did not incur this debt. It was incurred by PF era thief-thugs. So why burden HH with repayments? I agree that it is immoral for presidents to incur debts, MISUSE it and then hand them over to next generations, as pointed out by German-American philosopher Thomas Pogge, in his book, ‘Business as usual: What lies behind the pro-poor rhetoric’ (2010). President Kaunda handed about $7 billion debt, which MMD’s Mwanawasa/Magande cancelled through HIPC. But PF thief-thugs ate the reserves they found and left a debt of around $11.9 billion to HH to repay. 

Third, comrade M’membe must only blame HH if  he also borrows and fails to repay, or leaves no capacity to repay. Let us focus on around $2.8 billion that President HH’s government has borrowed.  Finance minister Stumbeko Musokotwane is assuring us that he is borrowing not to waste but to stimulate growth. I would like comrade M’membe to give us indications that these UPND borrowings are really used for growth or not. If he does, I will also join him into demanding UPND to use these borrowings to really boost growth. Because truly, UPND needs to either repay what it borrows or at least leave enough growth to enable repayments.

But it is not fair to say HH is a crook by deferring PF debts.



The author teaches business ethics at UNZA, which includes debates on moral questions around the Zambian Airways case. Phone: 0978741920. Email: austin.mbozi2017@gmail.com