By KALOBWE BWALYA
CHITA Lodge limited will have some of its property be sold for failure to settle K18 million it acquired from Development Bank of Zambia ( DBZ) in 2013 for the construction of a resort, purchase of four boats, a bus and furniture and fittings in Samfya District in Luapula province.
This came to light during the Public Accounts Committee (PAC) sitting on the accounts of the parastatal bodies and other statutory institutions for the financial year ended 2020 which is cited in the auditor general’s report.
The committee has also leant that several companies that got loans from DBZ have failed to service their loans and this has affected the performance of the bank
Permanent Secretary Ministry of Finance Danies Chisenda disclosed that the loan was restructured to K48, 802,590 after approval of additional loans in 2017 and had an extended grace period for repayments from February 1st 2015 to December 31st 2016.
Mr Chisenda explained that the records revealed that out of the restructured loan amount of K48,802,590, the bank only disbursed amounts totaling to K22,000,000 leaving a balance of K26,802,590 undisbursed and there was an outstanding loan amount of K88,627,116 comprising interest of K72,447,571 and principal K16,179,546.
Mr Chisenda said last year Chita Lodge owed an amount of K103, 453,269 comprising interest K87, 273,723 and principal K16, 179,546.
However, there was no documentary evidence of any legal action or re-negotiation made regarding the non-performing loan despite the facility being restructured.
The PS said the project has gone through various restructurings to make it viable but its revenue collections capacity was inadequate to service the loan facility.
He said through the tenure Chita lodges proposed the use of some of their collateral to facilitate the paying off of their loan liability.
He disclosed that Chita lodges came up with a concept to parcel out pieces of land on the Kafue property with a value which is much greater than the outstanding loan.
And PAC chairperson sitting on parastatal bodies and other statutory institutions, Brian Mbita, said it is unfortunate the Bank could not take action before things reached to this point.
He however said PAC will still call back DBZ after going through details for further clarifications.
Other companies that have failed to settle their loans is Shimaini which got about K36, 267,810 for the construction of a maize silo, milling plant and Weight Bridge in Kitwe at an interest rate of 22.25% with the repayment period of 120 months effective June 2015.
Africa Transmission Limited got US$857,108 for the purchase and installation of a UHT soya milk plant and completion of the construction of a factory and farmhouse for senior workers as well as Kalahari Drilling and Exploration Limited with a total sum of K8, 100,000 comprising of K500, 000 as working capital Loan and K7, 600,000 as a long term loan.