Maravi

Chiluba refuses to pay K1.5bn demanded by Mulenga's family

Chiluba refuses to pay K1.5bn demanded by Mulenga's family
By Chibaula Silwamba
Monday July 23, 2007 [04:00]

FORMER president Frederick Chiluba has refused to pay the K1.5 billion demanded by the family of the late Benson Mulenga for the K10, 000 he is alleged to have obtained from Mulenga’s group life insurance over 20 years ago. However, Chiluba has offered to help the family with some money, though the help may not be substantial as he is “also financially struggling”.

In an interview yesterday, Mulenga’s son, Buselic Mfula, demanded that Chiluba pays the K1.5 billion for the K10, 000 he obtained from his late father’s group life insurance at Zambia State Insurance Corporation (ZSIC).

Buselic contended that Chiluba was on July 9, 1983 unlawfully paid K10, 000 belonging to his father’s group life insurance benefits from the ZSIC on a bank certified cheque number 215575 drawn on Barclays Bank of Zambia Limited, Zomba Road, Kitwe from National Union of Buildings Engineering and General Workers (NUBEGW) of Zambia Congress of Trade Union. Chiluba was at the time national chairman of NUBEGW.

Buselic warned that should Chiluba fail to pay the K1.5 billion, he would take him to court demanding K12 billion.
According to a letter from Buselic’s lawyer Paul Pandala Banda and company, Chiluba insisted that he never obtained the money in question but offered to help the family in kind.

“We write to inform you that we were accorded an opportunity to meet and discuss this matter with the second president Mr FTJ Chiluba on the 10th November, 2006 at 16:00 hours at No. 23 (2b) Serval Road, Kabulonga , Lusaka. The issue was to determine liability. However, it transpired during the meeting which was also attended by Mr E.

Mwamba, special assistant for press that: (i) the second president was not liable because he was given a loan by NUBEGW and not by Benson Mulenga. In any event, the K10, 000 loaned cannot be discerned as having directly come from the estate of your father,” Paul Palanda Banda stated in a letter dated November 13, 2006, “(ii) That the rightful party to sue is the union, if any. (iii) The case is statute barred having occurred more than six years ago.

“However, the second president said that if it is help to be made to you, it must be made outside the claim and should not in any way be considered to be payment towards the claim, as such a disclaimer to ensue, except further that such help may be determined by the second president at his discretion and no amounts should be attached to it by yourselves. The second president also said that such help may not be substantial as he is also financially struggling.”

Therefore, Banda requested Buselic to consider Chiluba’s help outside his claim to enable the law firm write to the former president to consider it.
But Buselic said he does not want to be paid in kind but the whole amount because it was his father’s money and not a favour.

He said when he met Chiluba when he was Republican president at State House, Chiluba told him that he did not have evidence to prove that he obtained the money.

Buselic wondered why Chiluba would now be offering to help in kind when in the past he did not want to discuss the issue with him because he had no evidence.
According to the minutes of the NUBEGW’s general council meeting held on September, 12, 1987, the members wanted to know if Chiluba had paid back the K10, 000 which he had gotten.

“Sister Zambwe said that she wanted to get it clear on the K10, 000 which was meant for the late Mr Mulenga as benefits, before Mr Chiluba takes his seat. Mr Chiluba confirmed that he had talked to Mr P N Nzima on phone to organise K10,000 for him which he needed urgently and his plans were to pay it back as quickly as possible,” the minutes stated.

“Mr Nyirenda wanted to know if the money was paid back by Mr Chiluba within the short time he promised and he further wanted to know in what fate the late Mr Mulenga’s family was. Mr Chiluba said that in his mind he wanted to pay back through his gratuity at that time and said the most pressing issue at hand was the K10, 000 and perhaps we should avoid discussing the issue of the late brother Mulenga’s children.”

However, Chiluba through his lawyers Nicholas Chanda and Company in a letter dated January 3, 2006 in response to Paul Palanda Banda’s letter contended, “reading through your claimed documentary evidence, it was no where written that Chiluba received a payment on behalf of the deceased”.

Labels: CHILUBA, CORRUPTION, COURTS

posted by MrK @ 6:11 AM