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Former Energy Regulations Board (ERB) executive director Moses Zama has been sued for bouncing a cheque worth over K450,000.
The matter involves Zama’s company, Lambda Busing Corporation that issued a cheque to Indemnified Investments Holding Limited (IHL) whose director is banking and finance consultant Dr George Mulomboi.
According to court documents, Zama who is the signatory of Lambda Busing Corporation issued a cheque that bounced. The cheque has been legally interpreted as a personal cheque.
The matter which is before Lusaka magistrate Mwiinga and is running parallel to a civil suit in which Dr Mulomboi is still pursuing the recovery of the K450,000.
The court documents state that on July 24, 2012, Zama issued cheque number 029799 in the sum of then K458,300,000 on the account of Lambda Busing Corporation payable to Indemnified Investment Holdings Limited, drawn on International Commercial Bank Limited.
It was discovered afterwards that the cheque was not dated and Dr Mulomboi brought the issue to the attention of Zama and requested whether he could date it for him of which he agreed.
The cheque was then deposited at Zanaco Corporate Branch but that it was rejected on account that there was a circular that limited amounts payable by cheque to then K100 million.
After Zama was briefed on the rejection of the cheque, he claimed that his cheque book was finished and would re-issue the cheques according to the Bank of Zambia circular that limited cheque payments to then K100 million.
When two weeks elapsed without hearing from Zama, Dr Mulomboi contracted lawyers who issued a demand letter to Zama’s company but he brushed it aside. Dr Mulomboi later opened another account in an attempt to have the cheque cashed but it was again rejected on account of insufficient funds.
The matter was then reported to police and Zama was subsequently arrested and charged for the offence. Dr Mulomboi is represented by lawyer Sakwiba Sikota from Central Chambers. Trial commences on 26th September.
The post Ex ERB Boss Sued for Bounced Cheque appeared first on Zambia Reports.
