Maravi

Chiluba's liability increases to $58m

Chiluba's liability increases to $58m
By Noel Sichalwe and Inonge Nooyo
Friday June 08, 2007 [04:00]

LONDON High Court judge Peter Smith yesterday increased former president Frederick Chiluba's liability to the Republic of Zambia to US $58.2 million. The figure was increased from the initial US $41 million by Zambian lawyers in London after calculating the costs involved in the case. And judge Smith has also ordered the valuation of Chiluba's 12b Serval Road, Kabulonga residence to ascertain its actual market value.

During a hearing that was aimed at reconciling figures involved in the matter, live from London through a video link, judge Smith accepted that Chiluba should pay US $52,293,724, Xavier Chungu US $58,112,727 and Stella Chibanda US $58,112,727. Others are Aaron Chungu US $27,193,136, Faustin Kabwe US $53,757,867, Francis Kaunda US $100,575, Boutique Basile US $ 1,815,736 and Raphael Soriano US $29,609,582.

However, judge Smith said the figures would remain valid unless challenged by the non-participating defendants.

The Zambian lawyers further argued that Chiluba's house in Kabulonga was bought with public funds and was subject to seizure.

The lawyers argued that the Zambian government was entitled to possess Chiluba's house because it was bought with public funds.

The lawyers said when the house was about to be seized in 2003, someone filed an injunction against the seizure and that the matter was still in court.
After hearing the submissions, judge Smith ordered that the house be valued to ascertain its market value then rule whether it should be added to the judgment figure or be substituted.

Judge Smith further rejected Faustin Kabwe's submission that he should be drawing about 2,000 British pounds for his upkeep.

He said he could not allow Kabwe's submission because he had not justified how he would use the money in a country where such an amount could help over 3,000 people.
The lawyers further referred to a press conference that Chiluba held after the judgment, saying the money claimed to have been stolen was received from well-wishers and travel allowances.

They contended that Chiluba had not identified the well-wishers that gave him the money and that he could not justify his claims.

Judge Smith said he had already determined that Chiluba was using money stolen from government.

He further said his findings in the judgment were based on the balance of probability.
"People in Zambia must be aware that Dr Chiluba is entitled to a fair trial," judge Smith said. "I am aware that Dr Chiluba's trial is in August. I can see the deputy registrar refused to stop the trial because of my judgment. I have made my findings on a balance of probability. This judgment is on a civil standard and not a criminal standard."

Last month judge Smith established that Chiluba and others had defrauded Zambia of a total of US $41 million through the BK Facility and the Zamtrop account in London.
Judge Smith has ordered Chiluba and others to pay about 85 percent of the total sum (US $41 million) within 14 days upon service of the judgment.

This is a case in which the Attorney General of Zambia took out a civil suit against Chiluba and 19 others who were alleged to have siphoned about US $20 million from the state treasury.

Judge Smith said he was satisfied that Chiluba and former Zambia Security Intelligence Services director general Xavier Chungu were major conspirators and were also in breach of their fiduciary duties.

Those co-accused with Chiluba include Cave Malik and Company, Xavier Francis Chungu (XFC), Attan Shansonga, Stella Chibanda, Aaron Chungu, Bimal Thaker, Faustin Kabwe, Francis Kaunda, Boutique Basile, Nebraska Associates Limited, MISSL Associates Limited, Hearnville Estates, Jarban SA, Raphael Soriano Katoto, Belsquare Residence, NV Roland Cracco and Robert Standaert.

And in the case in which Donegal International was awarded about US $15 million over the Zambian debt they purchased from the Romanian government, the lawyers complained that during the hearing yesterday, there were some lawyers from Donegal International who were trying to see how they could exert pressure on the Zambian government to pay their money.

They complained that Donegal was trying to bully the government to release the money owed to them.

The lawyers complained that Donegal had even attached the MOFED account in their attempt to get their money.

They said this implied that Donegal could get all the money from MOFED account if they were successful with their attachment process.

Judge Smith has since ordered that he will hear the Donegal application together with the third party debt order.

Labels: CHILUBA, COURTS

posted by MrK @ 5:19 AM