By Mercy Matonga:
Businessperson Leston Mulli is demanding up to K270 billion plus interest from the government in a lawsuit for loss of business over a three-year period under the Joyce Banda administration following a ban on government business to companies belonging to him.
According to court documents we have seen, the office of the Attorney General in 2012 allegedly directed government departments to stop trading with companies associated with the businessman which was under investigation for alleged tax evasion.
The initial claim by Mulli is for a sum of K270 billion plus interest at 10 percent above the prevailing bank lending rate from 2012.
The money could rise to K1 trillion, when interest is calculated, according to sources close to the matter.
Mulli argues that his companies lost profits amounting to K33,044,636,000.44 and interest in delayed payments amounting to K131,028,752.27. The lawsuit further claims K966,153, 000.38 in suppliers and salaries, K602,533,000 00 in interest charges for litigation, K104,806,157,000.00 in loss of earnings.
“By the letter dated 5th September 2018, the Minister of Justice and Constitutional Affairs and Attorney General, offices at the time held by one individual, in a public misfeasance wrote a directive to all government departments that no government departments, organisations or agencies should conduct any business with the 1st claimant and their related companies and business,” arguments by Mulli’s lawyers read.
“As a consequence of the letter, all government departments, organisations and agencies stopped trading with the claimants and stopped paying any sums due to them,” the claim adds.
The documents name Mulli as the first claimant alongside his companies Mulli Brothers Limited, Sunrise Pharmaceuticals Limited, Celcom Limited, National Bus Services Limited and Chombe Foods Limited.
In an interview, Lusungu Gondwe, lawyer representing Mulli, said his client suffered loss but was never charged with any crime and that the ban was in effect until then Minister of Justice Samuel Tembenu reversed it in 2015.
“Since 2012, there has been no investigation of tax evasion or any other since the letter… was written, which means that it was unfair, unjust and a travesty at that time to stop Mulli Brothers and its associated companies from participating in government business,” Gondwe said.
Attorney General Thabo Chakaka Nyirenda said he would challenge the claim.
