By Mercy Matonga:
The High Court has dismissed an application by Attorney General (AG) Thabo Chakaka Nyirenda to throw out a K270 billion lawsuit by businessman Leston Mulli who is claiming compensation from the government.
Mulli, through his companies, is demanding the sum plus interest, citing loss of business over a three-year period under the Joyce Banda administration following an alleged ban on government business to companies belonging to him.
The court’s ruling means the matter will continue to full hearing.
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Chakaka Nyirenda had asked the court to dismiss the case on grounds that the claim was exaggerated and that the case was similar to another which was already dismissed.
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In a ruling, whose copy The Daily Times has seen, High Court judge Allan Hans Muhome said the matter must proceed as the State failed to demonstrate enough grounds to dismiss it.
“This court has not received any evidence of collusive bidding and tendering from the defendant, neither has the defendant presented evidence to prove that the claimants are related parties as the veil of incorporation has not been lifted.
“It is imperative for this court to state that the veil of incorporation cannot be lifted lightly as suggested by the defendant,” the judge said.
The companies through which Mulli is seeking the compensation include Mulli Brothers Limited, Sunrise Pharmaceuticals Limited, Celcom Limited, National Bus Services Limited and Chombe Foods Limited.
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According to the ruling, the AG further argued that the claimants were related parties and were involved in collusive bidding and tendering.
Chakaka Nyirenda is also cited as having posited that the claimants did not follow the procedures provided for under the public procurement law to appeal the decision.
The office of the AG could not be immediately reached for comment on the matter, but in an interview, Mulli’s lawyer, John Kalampa of Ritz Attorneys, welcomed the ruling.
“It remains our conviction that a wrong was occasioned against our clients and that they must be given an opportunity to be heard.
“We feel the application by the AG was unnecessary and a waste of the court’s time. It was rightly dismissed,” Kalampa said.
In the case, Mulli is arguing that his companies lost profits amounting to K33 billion and interest in delayed payments amounting to K131 million.
The lawsuit further claims K966 million in suppliers and staff salaries, K602.5 million in interest charges for litigation and K104.8 billion in loss of earnings.
According to court documents, the then AG in 2012 directed government departments to stop trading with companies associated with Mulli, who was allegedly under investigation for suspected tax evasion.
The business mogul’s lawyers argue that no case related to the allegations has ever been brought against their client.
