Maravi

Chiluba gets back forfeited properties

Chiluba gets back forfeited properties
By George Chellah
Wed 12 Jan. 2011, 04:02 CAT

JUDGE Philip Musonda has ordered the Anti Corruption Commission (ACC) to surrender properties to a company registered in Panama - Tedworth Properties Inc – which Frederick Chiluba used to acquire the said properties in Lusaka.

According to a judgment dated September 30, 2010, in the matter where Tedworth Properties Inc and the ACC were the plaintiff and defendant respectively, judge Musonda stated that this was an application by way of originating summons pursuant to Order VI Rule 2 of the High Court Rules.

He stated that the summons sought a declaration that the plaintiff was the rightful owner of properties F/488a/26/c, F488a/26/D and LUS/4829 known as Horizon House Leopards Hill Road, Chibote House and Alberg Court Longacres all in Lusaka respectively.

“A declaration that the notices issued pursuant to the Corrupt Practices (Disposal of Recovered Property) Regulations are illegal and an order reversing the notices issued by the director general of Anti Corruption Commission for forfeiture of the said properties to the state and costs. This action was filed on 27th May 2003 and passed through the hands of various judges until I inherited the matter on 20th August 2010. This inordinate delay in a matter touching on fundamental rights and freedoms i.e. property rights is deeply regretted,” he stated.

He stated that the background to the litigation was that on February 7, 2003, the ACC director general issued notice in government gazette No. 15807 that the properties were seized during the course of investigating an offence alleged or suspected to have been committed under the Act No. 42 of 1996 and that the property be forfeited to the state if not claimed within three months.

He stated that on February 4 the notice of seizure was served on Tedworth Properties Limited through Access Financial Services Limited (AFSL) who where the property managers and a company under criminal investigations by the defendants.

He stated that on February 20, 2003, Marshall Mwansompelo, who was managing the properties on behalf of ACC wrote to Faustin Kabwe and copied to Aaron Chungu that it was important that notice of intended seizure was brought to the attention of the plaintiffs, as the manager then could not trace their address.

He stated that the undisputed property history was that Sonny Paul Mulenga, a valuation surveyor, was engaged by Meridian Property Fund to find buyers for various properties, which were put on sale including the properties subject to this litigation.

He stated that the properties were advertised in the media, which was an open market.
He stated that the plaintiff company offered to buy some properties and the plaintiff bought the properties and paid the consideration through his firm to the vendor.

“After the sale was completed his firm was retained to manage the properties. The properties were transferred from Meridian Bank Zambia Limited to Tedworth Properties Incorporation on 21st October 1997. S.P Mulenga Associates International managed the property until 1998 when the management contract was transferred to Access Leasing Limited,” he stated.

He stated that a further affidavit was sworn on behalf of the plaintiff by Vernon Emmanuel Salazor Zurita, a national of Panama, who is also director of the company. Judge Musonda stated that he went on that the properties were purchased, as an investment in Zambia through S.P Mulenga and Associates.

“The properties were being managed through Access Leasing Limited and he produced computer printouts to prove ownership of the properties. A Mr Faustin Mwenya Kabwe swore an affidavit that the three properties owned by Tedworth Properties Incorporation of Panama and were previously managed by S.P Mulenga International,” he stated.

He stated that Edwin Sakala for ACC deposed that the property subject of this action was properly gazetted for forfeiture under the Anti-Corruption Regulations and the notice was served on the representatives of the plaintiff.

He stated that the property was never claimed and was subsequently forfeited to the state.

“He swore a further affidavit that there were contentious issues in this litigation,” he stated.
He stated that Friday Tembo’s affidavit paragraphs 1-9 did not dispute what had been deposed in other affidavits save and except that the affidavit alleged that the properties were acquired before the company was registered in Zambia and that it was not an investor then and that that the property was acquired by Kabwe and that the balance sheet of the company reflected an unexplained loan of K3,145,774,450 and that the value of the property was equivalent to the unexplained loan.

He stated that the ACC had no power to issue the notices and seize the properties and there was no basis as they themselves admit that the properties were bought from a loan and that the seizure was unconstitutional and based on groundless speculation.

He stated that this was even a matter, which would have been commenced by judicial review as the seizures were based on illegality and Wednesbury unreasonableness.

“It is hereby ordered that the seizure notice and seizure itself are null and void, the properties were bought on market overt, these properties came to Meridian Bank by way of realising securities for loans. Meridian received consideration from Tedworth in 1997,” judge Musonda stated. “The seizure was based on groundless speculation and illegal. The properties must revert to Tedworth Properties.”

Labels: ACC, FREDERICK CHILUBA, PHILIP MUSONDA

posted by MrK @ 8:39 AM