Mosho seeks closure of FNB

LEWIS Mosho, a Lusaka lawyer whom State House used to liquidate Post Newspapers Limited, is seeking to have operations of First National Bank suspended in Zambia for allegedly attacking his creditworthiness at the Credit Reference Bureau.

But FNB Zambia, through its Corporate Affairs manager Luke Ndhlovu, says the bank has always been a good corporate citizen that adheres to the Laws of Zambia.

In a letter dated August 24, 2017, captioned Notice of Injunction Stopping FNB Banking Operations in Zambia, Mosho, the State House agent, through his law firm Lewis Nathan Advocates, said the bank’s conduct was misleading to the Bank of Zambia and to the financial market.

“We act for Lewis Mosho (our client) who informs us that your FNB made a report to the Credit Reference Bureau (CRB) attacking the creditworthiness of our client. Your report alleges that you advanced a facility to our client, which has remained non-performing and that our client has hitherto failed to service the said alleged facility,”

reads the letter by Lewis Nathan Advocates.

“Our client finds the conduct of your bank to be extremely shocking and statutorily threatening and he is of the view that your banking operations may pose a risk and danger to the financial markets for the following reasons: 1. At no time or point has our client applied for any facility with your bank; 2. At no time or point has our client held any facility with your bank; and 3. Our client does not owe your bank any moneys or funds.”

Mosho’s law firm told FNB that its conduct was misleading to both the Bank of Zambia, its regulator, and the financial market.

“The conduct of your bank represents a falsified picture of its operations and poses great danger to the outlook of perception of the market. The conduct of your bank indicates that even its records and disclosures thereof needs an independent audit to protect money market investors as well as compliment regulation of markets in Zambia,”

reads the letter.

“Our client has instructed us to notify you that we are proceeding to obtain an appropriate court order from the High Court of Zambia to suspend your banking operations until a clear audit of your banking operations is conducted, and until you make good the loss suffered by not only our client but by any of your customers who may be found to be in the same position. Our client will also be holding a press briefing to sensitize the market on this development.”

The letter was copied to the Bank of Zambia, the Bankers Association of Zambia, FNB managing director and the bank’s legal counsel.

When contacted, Ndhlovu said he could not confirm whether or not Mosho had a facility with FNB but indicated that the bank had never engaged in business that could put it in a position that warranted suspension of operations.

“We cannot give details of our relationship or transaction history with Mr. Mosho or any other client for that matter due to customer confidentiality reasons. Our operations in Zambia are supervised by both the BoZ and the Reserve Bank of SA and satisfactorily successful past audits by the two regulators have facilitated for our continued operations in Zambia. We are highly liquid and well-captalised to meet any operational and regulatory requirement, now and in the foreseeable future,”

said Ndhlovu in a brief comment.

Mosho had a long battle with Shoprite Checkers over alleged illegal sale of the chain store’s shares.
Shoprite Holdings and Shoprite Checkers had sued Mosho, Richard Hardly and nine companies demanding over K3 million and to be declared as legal owners of the treasury shares.

Shoprite Checkers indicated that it employed the legal services of Mosho and his law firm.
The supermarket argued that from January 2005 to June 2006, Mosho breached his obligation and traded its shares on the Lusaka Stock Exchange (LuSE) without consulting Shoprite Checkers.

It is further argued that the funds amounting to K3,276,189,326.54 were not disclosed or accounted for or transferred to Shoprite Checkers.

Mosho was eventually acquitted by the Magistrate’s Court after all 42 charges of theft and money laundering were dismissed by magistrate Joshua Banda recently.

Meanwhile, Mosho, as a State House agent, is also the lawyer that the Lusaka High Court appointed as provisional liquidator of Post Newspaper Limited following an application by former Abel Mboozi, Roy Habaalu, Andrew Chiwenda, Bonaventure Bwalya and Mwendalubi to wind operations for alleged failure to pay them their dues.

The Post liquidation matter is still in court but Mosho has since auctioned movable properties and office equipment ranging from trucks, furniture, murals, printers and computers.


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