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Published on 2024-03-05 06:39:59
In a recent development, the High Court has made a decision regarding a K270 billion lawsuit filed by businessman Leston Mulli against the government. The Attorney General (AG) Thabo Chakaka Nyirenda had sought to have the case thrown out, but the court has dismissed this application, allowing the matter to proceed to a full hearing.
Mulli, through his various companies, is seeking compensation from the government, claiming that he suffered significant losses during a three-year period under the Joyce Banda administration. He alleges that his businesses were unfairly targeted by a supposed ban on government contracts to companies associated with him.
The ruling by High Court judge Allan Hans Muhome stated that the State did not provide sufficient grounds to dismiss the case. The judge emphasized that there was no evidence of collusive bidding or tendering by the defendant, and the claims of related parties and improper procedures were not substantiated.
The companies involved in the lawsuit include Mulli Brothers Limited, Sunrise Pharmaceuticals Limited, Celcom Limited, National Bus Services Limited, and Chombe Foods Limited. The AG had argued that these companies were related parties and engaged in collusive practices, but the court did not find this argument convincing.
Mulli’s lawyer, John Kalampa of Ritz Attorneys, expressed satisfaction with the court’s decision, stating that it was important for his clients to have the opportunity to present their case. He criticized the AG’s attempt to have the case dismissed, calling it unnecessary and a waste of the court’s time.
In the lawsuit, Mulli is claiming K33 billion in lost profits, K131 million in interest on delayed payments, K966 million in suppliers and staff salaries, K602.5 million in litigation interest charges, and K104.8 billion in loss of earnings. The root of the dispute dates back to 2012 when government departments were instructed to cease business dealings with companies connected to Mulli, who was allegedly under investigation for tax evasion. However, no charges related to these accusations have been brought against Mulli.
Overall, the court’s decision to allow the lawsuit to proceed indicates that there are valid concerns and legal arguments on both sides of the case. The matter will now move towards a full hearing where all evidence and testimony will be considered before a final judgment is reached.
Read the original article on The Times
